Ezra Klein: Costs Will Go Down After Reform

Ezra Klein settles the argument at the health care summit as to whether costs would go down after reform:

Lamar Alexander and Barack Obama just had a contentious exchange on

this point, so it’s worth settling the issue: Yes, the CBO found

health-care reform would reduce premiums. The issue gets confused

because it also found that access to subsidies would

encourage people to buy more comprehensive insurance, which would mean

that the value of their insurance would be higher after reform than

before it. But that’s not the same as insurance becoming more

expensive: The fact that I could buy a nicer car after getting a better

job suggests that cars are becoming pricier. The bottom line is that if

you’re comparing two plans that are exactly the same, costs go down

after reform.

Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.