> Their conclusion from the people that had looked into it is that it is sort of impossible for states to do this. Can't really remember the reasons.
adverse selection is the usual objection raised. If you can live in Montana while you're healthy, and move to New York when you're sick, then New York effectively becomes the dumping ground for the nation's sick and ends up picking up a hugely disproportionate amount of the tab without the revenue base to make it up.
That said, since coastal states make up a disproportionate amount of the economic activity anyway... they may be able to power through it, especially if they can all get onboard with it at the same time. It's not like de-facto cash transfers to the poorer "heartland" states are a new thing in the US.
People don’t move for various reasons, and now sick people are going to move for healthcare?
It’s not financially possible. The tax rate will be so high healthy people will then leave and you’ll be left with a fat bill for your sick population.
You have it backwards, you won’t get more sick people you’ll have less healthy people covering the bills.
adverse selection is the usual objection raised. If you can live in Montana while you're healthy, and move to New York when you're sick, then New York effectively becomes the dumping ground for the nation's sick and ends up picking up a hugely disproportionate amount of the tab without the revenue base to make it up.
That said, since coastal states make up a disproportionate amount of the economic activity anyway... they may be able to power through it, especially if they can all get onboard with it at the same time. It's not like de-facto cash transfers to the poorer "heartland" states are a new thing in the US.