Listen to Dan Schwartzer, Deputy Insurance Commissioner of Wisconsin, explain the plan with Here and Now's Frederica Freyberg:
Sneaky. Here's why that will not only bring down the exchanges, but all the reforms that have controlled cost and held premium increases to its lowest level ever.
1. The exchanges/marketplaces offer one stop shopping. It's all there, where you can easily comparison shop between insurers plans.And that's why offering subsidies off the exchange is not only a taxpayer gift to insurers and a total waste of money, but also incredibly deceitful. And coincidentally, it's just a few short steps away from the Ryan plan.
2. Your application information is available to each insurer on the exchange. Off the exchange, you'll have to make out a new application every time, a complicated and time consuming exercise. Plus, the possibility of fraud, or having your medical history stolen, is increased dramatically every time you hand it out.
3. Price. The state negotiates with insurers for the best price. It's been done in every state run exchange. That won't be done off the exchanges, period. And that's what brings down the entire Affordable Care Act. Every innovation, every change brought about by "ObamaCare" disappears. What will reappear are insurance premiums through the roof, even with the requirement that 80 percent of the premium go to health care. No negotiations downward. Insurers will also be able to make up for covering preexisting conditions too.