It has been expanded from seven to 17 counties and includes 40,000 children. In Florida, local authorities take bids from insurers and health plans and choose the lowest bidder as the sole insurer. While proponents say this practice ensures a lower bid from the provider who can enroll all of the children, it also limits competition. A better approach would let families choose among qualified insurers and health plans and require families to pay more out of pocket if they choose an expensive plan. In fact, a Medical Savings Account option would maximize families' choices by giving them more control over the money, while minimizing the cost.
Sellers are more responsive when consumers control the money.
Therefore, parents should be financially empowered to choose their health plan themselves. If a senior makes this choice, Medicare transfers the senior's allotment of funds directly to the insurer. Similarly, a low-income family could choose a plan and the state could transfer the annual premium to the insurer. Low-income families could be offered a refundable tax credit to apply toward the purchase of their children's health coverage. The credit would cover most or all of the cost of the insurance and the parents would pay the difference.