2.28.2010

Market-subsidized health insurance

Citing the examples of the mobile phone providers offering subsidized handsets in exchange for a multi-year service commitment and Google providing free broadband (to say nothing of tools like this) in exchange for ad sales, Mark Cuban asks whether there might be room for companies to provide health insurance to their customers and not just their employees. He goes on to suggest that perhaps for a commitment to buy all staple products from Walmart, Walmart could provide health insurance.

Interesting idea, but I'd revise a bit. What if, instead of a commitment to buy, you actually had to hook up your bank account so there would be an EFT of $X per month from you to Walmart and you'd get $X in Walmart store credit. That is, you'd get the full value of your transfer but it would only be usable at Walmart. Then Walmart would provide you with health insurance "for free" - it's free to you but not really because Walmart makes the profit from the goods you buy.

I don't know that I like this idea, but it's interesting to see someone finally think outside the box about ways the market could provide health insurance. Would the Reps actually consider recommending something like this though? Don't hold your breath: that would be suggesting a solution. That feels too much like work.

1 comments/complaints:

DrFrankLives said...

How would this work? Seems to me there would be no incentive to hold down costs.

On the other hand, maybe Wal Mart's infamous ability to demand cost reductions from its suppliers would come into play, with all the concomitant problems with quality control and labor issues.

The one argument I have heard from a conservative in this entire HCR debate is the argument that we should just take several hundred billion dollars and open federal doc in a boxes in every Wal Mart and Target, services payable by payroll deduction. Services limited to general healthcare and health maintenance. Cancer, etc. cases covered by a catastrophic healthcare insurance plan.

Why not?