When campaigning, Massachusetts Governor Deval Patrick promised to lower health insurance costs for families. When the tightly regulated Massachusetts insurance market resulted in increased premium costs, he turned to price controls. Insurers successfully appealed to have the Administration’s rate freezes overturned, because they would lead to insurers going out of business. ObamaCare is structured with similar regulations as the Massachusetts health system, and Obama made the same promises about lowering premiums, which are proving impossible to fulfill, so federal price controls might be in our near future.
When it comes to ways to make coverage available to uninsured Americans with expensive preexising conditions, high-risk pools would cost less than one-tenth as much as ObamaCare, wouldn’t raise everyone else’s premiums, wouldn’t decimate the private insurance market, and wouldn’t leave us with government-run health care.
As health care becomes politicized — with basic economic principles being denied — the Obama administration considers coercing states to issue price-controls on health insurers, by threatening to withhold tax revenue to states if they don’t. This would effectively leave private insurers with only two options: ration care, or go out of business.
ObamaCare bears about as much resemblance to the Heritage Foundation’s ideas for empowering patients and lowering costs as a Double Quarter Pounder with Cheese does to a salad.
Obamacare would offer major financial rewards for couples who live together but avoid marriage — and it’s extreme marginal tax-rates on a marriage’s second income would provide a strong incentive for the lower-earning spouse (most often the woman) to leave the workforce.
With private websites like eHealth.com already offering services to assist those looking to purchase health insurance, ObamaCare’s Health Benefit Exchanges would simply be a waste of taxpayer dollars.
“One of the main arguments for both RomneyCare (the health care law Massachusetts enacted in 2006) and ObamaCare (the federal law enacted in March of this year) is that once the government mandates that everyone purchase health insurance, premiums will fall due to broader pooling. A new study published by the Forum for Health Economics & Policy suggests the opposite.”
“Most health policies that cover small groups and individuals in Florida – including the state’s own Cover Florida plan – likely will flunk federal requirements that take effect in September, the governor’s office says. “
Empowering patients with consumer-driven health care is a proven way to reduce the growth in medical costs. ObamaCare empowers government agencies and insurance companies instead of consumers by restricting the ability and of patients to take ownership of their health care decisions. “Rising health care costs represent the largest threat to the nation’s fiscal solvency, and unfortunately, Obamacare does little to change that. But empowering consumers can cut costs.”
Gov. Daniels gave a presentation demonstrating how ObamaCare would hurt state budgets and undo many innovative and successful state reforms already in place. Under ObamaCare, the Healthy Indianans Program, which covers the uninsured, will be replaced with a forced expansion of the state’s Medicaid program, which will provide inferior care and reduce flexibility for consumers.