On the recordApril 22, 2008
That's right. Absolutely. And it's equally important to recognize that this is not a big government-run plan. We're not creating another big government bureaucracy. It's government negotiated but it's private competition. It's managed competition. Private insurers would be able to compete for now enrollees based on benefits, efficiency service and price. So the insurance companies have an incentive now to economize, find efficiencies. They would have to deliver on what has been negotiated in the various plans, and that would be clearly spelled out, but they would now be challenged to find ways to do things like invest in preventative and early care, which there really isn't necessarily the incentive, I believe, right now for insurers to do that, because, for example, when it's tied to employment, you know, we all, people change jobs several times throughout their careers. There's no guarantee that an enrollee that starts with an insurance company today is going it would be Insurance Company B, you know, wouldn't be with the Insurance Company A years down the road. They would be with potentially another insurance company, which means, you know, why should Insurance Company A invest in all this early preventative care, when, down the road, when someone gets older and we all become greater consumers of health care, that, why would they, that company wouldn't benefit from the investment that they made, where under this system they would.
Source
govinfo.gov




