ABSTRACT
This chapter discusses coverage-expansion approaches and cost-containment approaches as two distinct columns in the menu of health-reform options. Consumers receive financial assistance, a tax credit or deduction or a voucher to help cover the cost of health insurance premiums. Federal employees health benefits (FEHB) has a few national preferred provider plans (PPO) plans, with uniform national premiums, competing with local health maintenance organizations (HMOs) that charge local market prices. Employers may be required either to offer health coverage to employees and contribute some share of the premium or to pay into a public fund. A public program such as Medicaid or the State Children's Health Insurance Program (SCHIP) would be expanded to reach a larger population. High-deductible health plans (HDHPs) are intended to deter unnecessary utilization of services, lead consumers to consider costs and benefits in considering alternative treatment, and encourage price shopping which, in turn, it is hoped, will promote price competition among providers.
