McCain unveils health care plan

McCain's proposal calls for:

1. ending the link between employment and health insurance
   
2. paying providers for outcomes, rather than procedures
3. allowing drug reimportation

Comments:

1. If consumers have to shop for insurance directly, rather than with other people's money, they will choose cheaper plans with bigger co-payments, which would likely reduce price inflation. UPDATE: evidence here.
   
2. If we can measure performance, then this would reduce moral hazard by linking pay more closely to performance; and
   
3. This would likely end price discrimination. The big losers will be foreign countries, e.g., Africa, that currently buy drugs very cheaply.
   

DISCLAIMER: I am supporting McCain