From the New York Times:
President Obama will propose on Monday giving the federal government new power to block excessive rate increases by health insurance companies, as he rolls out comprehensive legislation to revamp the nation’s health care system, White House officials said.
By focusing on the effort to tighten regulation of insurance costs as a new element that had not been included in either the House or Senate bills, Mr. Obama is seizing on outrage over recent premium increases of up to 39 percent announced by Anthem Blue Cross of California, and moving to portray the Democrats’ health overhaul as protecting Americans from profiteering insurers.
The President’s proposal is, of course, the wrong idea. Yes, premium increases are going to be tough on Americans. Yes, insurers are probably going to be making what some would call obscene profits with this rate increase.
But all of this is nothing but government “solution” to a problem created by another government “solution.” Of course insurance companies can increase premiums by 39%; that’s what happens when you don’t allow interstate commerce and states decide to institute mandates that require insurance to cover benefits like acupuncture (for the benefit of special interests, of course).
The worst part is, this “solution’ will cause problems of its own — by artificially reducing prices, the government will only encourage insurers to drop high-risk people — those who need insurance the most! And of course, that problem will prompt government to find another “solution” and so on and so on.
Of course there are problems in health care; the thing is, most of these problems are created by government.Published in