New Obama health plan moves hard in wrong direction
Well, let’s see: It costs $75 billion more than the Senate plan. It delays the one sure-fire cost-control measure, the tax on high-end plans. And it gives the federal government new authority to block insurers from increasing premiums. That last one is particularly wrong-headed. The policy thrust of ObamaCare was supposed to be to reduce costs by changing how healthcare was delivered, not through rationing. But price caps are nothing more than rationing. As Cato’s Mike Cannon puts it:
As I have written elsewhere, artificially limiting premium growth allows the government to curtail spending while leaving the dirty work of withholding medical care to private insurers: “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.” No doubt the Obama administration would lay the blame for coverage denials on private insurers and claim that such denials demonstrate the need for a so-called “public option.