Capping Costs

by Alex

Sen. Hilary Clinton just explained an idea of capping healthcare costs. While the idea is not new, she roughly explained what the cap would be at. She would want it at 5-10 percent of household income. Therefore, no family or single person would have to pay over that threshold in healthcare costs per year. Sen. Barack Obama has also mentioned this but has not specificed his proposal yet. Sen. John McCain has not announced this idea so far.

I thought this is one of the more interesting cost-cutting mechanisms I have seen. I would think Sen. Obama's plan would be similar. However, there could be disagreement in whether the cap should be progressive or flat. That is, should the rate increase as income increases, or should it be one rate for everybody.