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Health Affairs, Vol 12, Supplement 1, 7-23
Copyright © 1993 by Project HOPE
A Bridge To Compromise: Competition Under A Budget
Paul Starr
and
Walter A. Zelman
A new approach to universal health insurance combining managed competition and global budgets promises to break the impasse blocking comprehensive health reform. The central innovation is the development of regional health insurance purchasing cooperatives (HIPCs) as managers and reorganizers of the market and platforms for global budgets. Financing would be based on community-rated premiums, with obligations to employers capped as a percentage of payroll and to individuals as a percentage of family income. Budgets would cap the mandated core of spending and set a target for out-of-pocket expenditures.
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