Health Insurance Exchanges: A Race to the Bottom

“President Obama says that his health plan’s popularity will grow once its provisions start being implemented. But peculiar rules tucked into the legislation are likely to make the entire scheme even more disliked as its implementation approaches… The problem is that the actual insurance that health plans offer may be fairly lousy — perhaps just a little better than the typical managed care plan offered under Medicaid. That’s because of the way these insurance products are going to be regulated, and the way they will be priced under the federal scheme.”