Netherlands Approach to Health Insurance: Would it Work in Ohio?

The Netherlands has adopted a very intriguing approach to health insurance. First of all, it uses private insurance companies. Second, it requires all citizens to get health insurance. Third, it makes all health insurance companies accept all applicants. Fourth, it makes all health insurance companies offer the same basic policy with the same benefits. People can buy supplemental insurance, but the same standard policy with the same benefits has to be offered to everyone. You can read more about the Dutch approach to health insurance here.

One thing that should be kept in mind is that the Netherlands is bigger than the State of Ohio, but not a lot bigger. Ohio has a population of 11 million plus while the Netherlands has a population of 16 million plus. The advantage of such an approach is that it people who have health insurance would probably be able to keep such coverage, increasing their comfort level with the concept. Another advantage for doctors and other providers of health services is that there would be a universal insurance policy with a standard amount of benefits. Consumers wouldn't have to worry about being denied coverage for pre-existing conditions.

Another advantage of this program is that insurance companies would be forced to compete with each other by becoming more efficient. Right now there is a big difference between the administrative costs for private insurance companies and Medicare. The administrative costs, as represented by the percentage of health care dollars going to such costs, are much higher for private insurance companies than for Medicare.
The change would be politically difficult, but probably easier than establishing a state-run insurance program. Democrats should think about adopting the Dutch model as the model for Ohio.