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Health care solutions likely lie with the states

Three former U.S. health secretaries, representing both political parties, say the federal government should have one major aim right now when it comes to its role in health care — stability. They recommend maintaining billions upon billions in federal subsidies for some consumers’ insurance copays and deductibles. They want President Trump to stop threatening to end these subsidies.

Without the subsidies, health insurance premiums will spike higher, more insurers will leave the Obamacare marketplace and federal deficits will rise, according to the Congressional Budget Office. Premiums already are soaring and more insurers are getting out of Obamacare.

We can understand the point that the three secretaries — Kathleen Sebelius, Mike Leavitt and Tommy Thompson — are trying to make, but even they will acknowledge that the federal government’s involvement in health care is teetering on the brink of collapse. Big subsidies only shore things up for a little while. There are deep, deep problems in Obamacare.

Solutions may include getting states far more involved. Minnesota was doing quite well for itself, in fact, before Obamacare came along. States could get more flexibility through waivers, to tailor their insurance market rules as they see fit. Some in Congress also have suggested simply sending block grants to states to handle health reform efforts, allowing the federal government to take a step back.

We would note that states are not going to do well if the feds insist on standard benefits in insurance policies. These drive up costs when many people could save money through having catastrophic coverage and paying out of pocket for routine medical services.

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