BREAKING. Supreme Court Halts Obama Climate Change Rule
The US Supreme Court has blocked an attempt by the Obama administration to destroy the US coal industry. It ensures this rule will not be enacted under Obama.Read More »
Promoted from the Diaries by Jeff.
Under former Governor Mitt Romney, the state of Massachusetts undertook the largest single step towards single payer health care of any government entity in the United States to date. It has created a myriad of problems, chief of which is a massive headache for those who are now forced to pay for insurance that they never wanted or can’t afford. The plan, in a nutshell, requires all Massachusetts residents to purchase a state approved private health insurance plan or pay into a state run plan. This mandatory purchase law, with concurrent restrictions on what qualifies as “insurance”, has lead to the nation’s largest increases in premium.
Instead of recognizing that insurance premiums are rising because of the state’s laws, current Governor Deval Patrick is set to double down on the squeeze that health care costs are putting on his state’s citizens.
Patrick said officials are considering using state insurance regulations to block excessive healthcare premiums.
It certainly doesn’t take a rocket scientist to understand that by “block excessive healthcare premiums” Patrick means that he is going to institute tighter control over premiums [Every state’s insurance regulatory body already reviews and approves rate increases annually based on each state’s formula for ho much they feel the insurance company has to pay in benefits on each dollar of premium before they are allowed to raise premiums. Note that this formula doesn’t take any account as to whether the company is profitable as there are other expenses beside the actual costs of the claims.] The folly of price controls will not solve Massachussetts problems. Price controls will simply introduce new problems [while admittely keeping the price of insurance lower]:
Try as we will, this type of logic will be lost on the most fervent advocates of further increased government control over the health care market. I fear for my friends in Massachusetts. The state was offered evidence that their experiment is failing. As of yet, they have not recognized the warning signs.