Mr. Obama today has revealed his plans for government run health care.
His plan would, yet again, propose that control of our health insurance be in the hands of the federal government. Washington would control both the pricing of health insurance and the health benefits offered. Individuals would still be required to buy health insurance (so-called private or individual mandates) and employees must still pay mandates (or taxes) on employers' health care (although the President does want to exempt the smallest businesses from the tax). This plan also eliminates the "Cornhusker Kickback" though it retains the "Louisiana Purchase".
Some questions remain: does the President's plan, in going along with the Senate proposal, propose federal health plans to compete with private health plans, and does it pay for abortions? Two questions not answered thus far....
And the price tag---1 trillion dollars.
All this comes on the heels of California health insurers asking for a hefty hike in premium prices. But before demanding that the federal government clamp down on price increases, let's ask what might happen if the feds control BOTH prices and benefits?
From the New York Times: "The president’s bill would grant the federal health and human services secretary new authority to review, and to block, premium increases by private insurers, potentially superseding state insurance regulators." So, first of all, you would lose control of the health care process. That control would go to Washington.
Next, from Cato Institute, “Premium caps, which Massachusetts governor Deval Patrick is currently threatening to impose, force private insurers to manage care more tightly — i.e., to deny coverage for more services.”
The federal government wouldn't have to actually fix anything, of course--just wring its hands at the poor outcome of its legislation. But it can't provide something--health care--when there isn't any money available. http://www.cato-at-liberty.org/2010/02/22/obamas-best-idea-rationing-care-via-clinton-esque-price-controls/
As President Obama's economic advisor says, "The...lesson is that price and exchange controls inevitably create harmful economic distortions. Both the distortions and the economic damage get worse with time." http://www.treas.gov/press/releases/rr1247.htm
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