Trump’s Health Care Plan Is One Sentence Plus Hand Gestures

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Obamacare, whatever its flaws, has extended insurance coverage to an estimated 16 million people.  Donald Trump promises to repeal it and in return offers no direct support for poor and middle class families who struggle with health costs. His sole substantive proposal on health care is to deregulate insurance companies to make it easier for them to sell insurance across state lines.

Trump summed up his plan in the debate on Thursday: “When you get rid of the lines [around the states] it brings in competition.” Circular hand motions were added to make the point more vivid.

There are two major problems with this proposal: (1) it doesn’t work, and (2) even if it did, it’s nothing close to a complete health care plan for the nation.

In theory driving down costs by encouraging interstate competition is a nice free-market idea. But as the Upshot has detailed, the evidence that this works in practice is nil:

The trouble is that varying or numerous state regulations aren’t the main reason insurance markets tend to be uncompetitive. Selling insurance in a new region or state takes more than just getting a license and including all the locally required benefits. It also involves setting up favorable contracts with doctors and hospitals so that customers will be able to get access to health care. Establishing those networks of health care providers can be hard for new market entrants….

In 2012, Ms. Corlette and co-authors completed a study of a number of states that passed laws to allow out-of-state insurance sales. Not a single out-of-state insurer had taken them up on the offer. As Ms. Corlette’s paper highlighted, there is no federal impediment to across-state-lines arrangements.

The laborious work of setting up a network of providers is not something that out-of-state insurers can easily replicate, and as far as the evidence goes, there’s no sign it would have any effect on the insurance market or costs to consumers.

Even if eliminating state barriers somehow restrained growth in health care costs, repealing Obamacare would toss 10 million+ back into the realm of the uninsured. What would happen to people with pre-existing conditions? That Trump hasn’t even thought about addressing these issues highlights how shallow his approach to policy is. After eight months of running for president all he’s picked up on health care is an irrelevant sound bite on “lines around states.”

In the clip below, when Dana Bash asked Trump if he has any other health policy ideas to add, Trump responded: “There’s nothing to add. What’s to add?” Meanwhile his odds of winning the GOP nomination are approaching 80%.

New Hampshire Predictions: In the Wake of Rubiobot

Marco Rubio emerged from Iowa as the momentum candidate in the GOP. His strong third place finish put him close to Trump and decisively ahead of his “establishment” rivals: Bush, Kasich, and Christie. But then came Saturday’s debate and Rubio’s repetition gaffe:

Polls leading up to Saturday’s debate showed Rubio building toward a strong second place showing and another decisive win over his establishment peers, but now Rubio’s stock is dipping back toward the rest of the pack’s. Christie was eager to take down Rubio at the debate, but he came off looking like a bully and probably won’t get much of a bounce out of it. So the immediate beneficiaries of the Rubiobot moment are likely to be the other establishment lane figures: Kasich and Bush. With that in mind, it’s time for predictions for the GOP New Hampshire primary:

Trump: 32  Kasich: 15  Rubio: 14  Cruz: 12  Bush: 12 Christie: 8 Fiorina: 4  Carson: 2

If this plays out, the big picture winner here is also the immediate: Trump. Not only does Trump claim the lion’s share of the delegates but he also benefits from seeing an establishment lane that continues to be fractured and in flux. Will party elites rally around Kasich if he wins? Seems unlikely. But one could imagine them being slower to unify behind Rubio. Meanwhile unless Bush or Christie surprise, they will not have done enough to justify party confidence and might even need to think about exiting the race. If establishment support continues to be splintered among several candidates, Trump’s position will remain relatively strong as the campaign moves into the Southern states.

The Democratic side is much less intriguing in the Granite State. Expect a handy but not race-changing win for Bernie:

Sanders: 54  Clinton: 44