Paul Krugman: Swiss Myths


 

Oh, my. Aaron Carroll is rightly very, very annoyed at Douglas Holtz-Eakin and Arik Roy for saying that Obamacare should be replaced with a free-market system, like Switzerland’s. As he points out, the Swiss system is nothing like their description. In particular, they denounce community rating — but Switzerland has community rating!

Actually, though, it’s even worse than Carroll lets on, for two reasons.

One is that Obamacare in fact looks a lot like, you guessed it, the Swiss system — so much so that back in 2009 I described it as a plan to Swissfy America. After all the screaming about the awfulness of Obamacare, it’s pretty rich to hold up as a role model a very similar system.

But wait, there’s more: the Swiss system is more privatized than other European systems — and guess what, it has higher costs, indeed second only to America’s:

Maybe Holtz-Eakin doesn’t know anything about this — but wasn’t Roy supposed to be a conservative expert in this field? Are they really unaware of the basics here? Or do they just expect their readers to be easily fooled?

Swiss Myths – NYTimes.com

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