The mechanism for cost containment under this plan is competition among accountable health partnerships over the price of a minimum benefit package. Although taxpayers could choose any minimum benefits insurance package offered by any participating accountable health partnership, they would not be able to deduct from taxable income more than the cost of the minimum benefit package offered by the cheapest accountable health partnership. Theoretically, this tax subsidy limit would encourage taxpayers to choose less comprehensive health insurance and efficiently run insurance plans. With managed competition, the government would take an active role in selecting the basic benefit package and in defining the type of insurance that most people would be able to purchase.
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