Ezra Klein on Health Insurance Exchanges

Ezra Klein is one of my must-reads on the whole health care reform situation. He digests all those white papers, position papers and the like, and then spells out the most salient points.

The mechanism that makes it possible to get a better deal on insurance is the Health Insurance Exchange.

The Health Insurance Exchange, combines the benefits of choice that are theoretically available on the individual market with the bargaining power and scale that’s generally accessible only in large employers

In a later post, Klein says that there’s a bill — the Free Choice Act — that makes this Health INsurance Exchange really and truly makes the health care reform work. Because in 5 years time, the exchange is open to anyone, not just individuals/self-employed. But anyone who has an employer-based plan.

The Free Choice Act starts by setting the rules for the exchange: Within five years the exchange is open to all employers. More importantly, it’s open to all people. (emphasis in original)