Posted on 09/23/2009 8:20:59 PM PDT by Steelfish
Mandate Minus Price Controls May Add To Cost Of Healthcare
With lawmakers reluctant to limit what insurers may charge, there's little to slow soaring premiums. Coupled with millions of new customers, that adds up to higher costs for taxpayers and consumers.
Noam N. Levey and James Oliphant September 23, 2009
Reporting from Washington - In the drive to bring health coverage to almost every American, lawmakers have largely rejected restrictions on how much insurers can charge, sparking fears that consumers will continue to face the skyrocketing premium increases of recent years.
The legislators' reluctance to control premium costs comes despite the fact that they intend to require virtually all Americans to get health insurance, an unprecedented mandate -- long sought by insurance companies -- that would mark the first time the federal government has compelled consumers to buy a single industry's product, effectively creating a captive market.
"We are about to force at least 30 million people into an insurance market where the sharks are circling," said California Lt. Gov. John Garamendi, a Democrat who served as the state's insurance commissioner for eight years. "Without effective protections, they will be eaten alive."
Soaring premiums coupled with millions of new customers forced to buy policies would likely mean higher costs for taxpayers to cover government subsidies for lower-income families and individuals.
They could also mean bigger bills for people who get benefits through work and for their employers.
"I don't think there is any degree of confidence that our costs won't continue to go up," said Keith Ashmus, chairman of the National Small Business Assn.
If premiums continue to rise as quickly as they have over the last five years, the average annual cost of a family policy will exceed $24,000 in 10 years, up from $13,375 now....
(Excerpt) Read more at latimes.com ...
Price controls = rationing
Impossible! Government has a tremendous track record of making private industry lower costs to benefit all of us working schlubs. The more government meddling we get, the lower everything costs. Don’t you believe your own eyes?
” Price controls = rationing “
= kill all the expensive people.
Better Yet:
Premium Costs = Health Care Costs
Competition, between health insurers, is great at holding down their admin costs. Believe me, I see it and live it every day.
Many of these insurers are 501c3 non-profits, so no one is getting rich either.
Health care costs are driven by technology; hospital, surgical, diagnostic and phama.
Also, enforced national care standards, government regulations from dozens of agencies, and heavy legal liability do NOT allow providers to consider cost as a concern, ever, under any circumstances.
Our system is gold plated because we “want it that way” or so they say, but really it is because government requires it.
If we want lower costs, then we need to change to rules allow more flexibility and transparency.
In 10 years due to inflation the dollar won’t be worth 10% of what is is today so due to rationing the cost of insurance will actually decrease if they allow you to live to buy it!
“Many of these insurers are 501c3 non-profits, so no one is getting rich either.”
Both the Medicare provider, SCAN, and the hospitals they use, Scripps, we use are both non profit and provide above excelent service!
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