President Clinton's Version of Community Rating Would Shift Costs from Government to the Private Sector. Under the Clinton plan, the government would be able to enroll Medicaid patients, early retirees and the nonworking uninsured in private health insurance plans. But because of community rating, the premium for these three groups would be about half of the expected health care costs. As a result, a multibillion-dollar burden would be shifted from Medicaid and other government programs to the private sector. The greatest problem in health care reform is making sure that, in solving the problems of the few, politicians don't create even greater problems for the many.
Community rating fails that test.
Its costs would greatly exceed its benefits.