“The problem is the equivalent to the price of an average full service insurance policy. If you cover all people legally residing in the USA, you will not be able to compute the price. Because there will be no market for the “average full service”. And it is never clear what is a “full service”.
The sum paid will become the minimum for all the services, because the prices will grow up given the increased demand. It is like a market with a minimum subside given to the buyers for unit of good bought. The prices will grow (usually fast) to meet this minimum.”
I’m not sure that this would be the case because buyers will have the option of choosing cheaper policies and withdrawing the rest of the money in their account to spend on other things. Some will choose to do this so there will be a market for cheaper than average policies.
If the money was ‘either to be spent on healthcare or you lose it’ then I would tend to agree with you, prices would drift upwards so that the level of funding given became the minimum price.
Obviously the definition of ‘full service’ would be subjective but something that provides the sort of care that typical employer-paid plans do now with a low deductible would be a reasonable standard.
