There are two different bills in Raleigh that warrant some attention. The first is potentially an enormous positive; but I fear the second would turn out to be a major mistake.
First, the good news.
The Trump Administration had pioneered the concept of allowing Association Health Plans. This new type of plan for health coverage skirts the troublesome requirements nestled within Obamacare, and allows more affordable coverage. In view of the fact that Obamacare absolutely decimated the health insurance market for individual coverage, and insurance costs skyrocketed for ordinary Americans, another option is truly needed.
Now, Joyce Krawiec and Dan Bishop are sponsoring a bill to loosen rules to allow these Association Health Plans in North Carolina. This is a great idea. Republican leaders ought to make sure the bill achieves what it needs to achieve; and then advance it accordingly.
Now, the bad news.
The North Carolina House leadership, led by Tim Moore, is trying to pass a huge school bond package. This is a major issue because construction of schools has typically been a local responsibility. Moore is undoubtedly trying to assist rural counties that are struggling by transferring wealth from urban and suburban counties. But this is a profound change that may have permanent consequences.
Creating the expectation that state taxpayers will foot the bill for local school construction invites the temptation to overspend if bond monies are used. Expanding debt is probably unwise given the fact that the state has many other unfunded liabilities. The plan also creates a precedent that might turn out to be very difficult to unwind.
The Senate countered with a different plan which, while better than the House plan, still ought to be off the table.
In any event, the General Assembly ought to pass a good Association Health Plan bill and stay away from school construction.
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