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Red states that don't like Obamacare would be able to take federal money and design their own systems to provide basic, catastrophic coverage plans to everybody.
He said that he now believed that near-universal coverage could be achieved without a mandate, and added that the mandate he once supported was for basic catastrophic coverage, not comprehensive insurance.
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Medicaid recipients would have a choice of private plans offering basic care, catastrophic coverage and the possibility of state-funded flexible spending accounts, which recipients could use to pay for medical services not covered under their basic plans or to purchase enhanced insurance coverage.
Policies that offer more services and options will cost more than plans that only provide basic, catastrophic-event coverage.
But requiring each insurance company to offer a basic package with catastrophic coverage would ensure that individuals with greater needs would not be excluded.
He is also developing a proposal for a "universal health care voucher" system in which all families or individuals would be given a voucher -- financed by an earmarked value-added tax — that would guarantee them coverage in a private health plan with a standardized package of benefits, including basic health services and catastrophic coverage.
Your policy may offer fantastic coverage for basic trips to the doctor, and terrible catastrophic coverage.
By contrast, under President Clinton's plan, basic drug benefits would begin in 2003, with catastrophic coverage to follow three years later.
Under Mr. Graham's bill, the protection against very high drug costs, known as catastrophic coverage, would begin in 2003, along with basic drug benefits.
Each family or individual would be given a voucher to purchase a policy that covered basic services, including doctor visits, hospitalization, pharmacy benefits, some mental health and dental care, and catastrophic coverage.
"Do we need to have catastrophic coverage?
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