Four Health Care Reforms for 2009

.../ Insurance exchanges that bring together insurance companies and potential buyers have lower administrative costs than does a system in which numerous sellers and buyers of insurance have to make separate deals. Exchanges are particularly valuable for individual buyers, for persons who are self-employed, and for small firms; they would also be an excellent alternative to employer-sponsored insurance. To succeed, the exchanges must attract large numbers of enrollees — healthy persons as well as sick persons — and must have risk-adjustment rules to protect insurance companies that enroll a disproportionate number of sick beneficiaries.../ Victor R. Fuchs, Ph.D. link