Her plan proposes ‘global budgets’ to control costs. That will inevitably lead to rationing of needed services.
Until now, Medicare for All proposals have been pleasantly vague. They plausibly allowed voters to imagine that more medical services would be covered, without premiums, out-of-pocket costs or the inconvenience of networks or claims reviews by insurers.
But now Sen. Elizabeth Warren has sought to specify exactly how her overhaul of American health care would be paid for. The most remarkable feature of her proposal is the extent to which she proposes to rein in health-care spending simply by restricting the resources available to providers.
Ms. Warren proposes to “use available policy tools, which include global budgets, population-based budgets, and automatic rate reductions,” to limit the annual rate of health-care spending growth to match the growth of the economy as a whole.
Chris Pope is a senior fellow at the Manhattan Institute and author of a forthcoming report, Medicare For All in International Context: Lessons from Abroad for Comprehensive Health-Care Reform. Follow him on Twitter here.
Photo by Scott Olson/Getty Images