Obamacare Facts: More Scary Signs of What's Ahead
Common sense business practice dictates that insurers will participate in those exchanges which guarantee them the highest certainty of success - namely, the states where they can profit the most, while making as few changes to their existing products as possible.
Otherwise, you can bet that insurers will sit tight and see how participating insurers fare before they risk their own necks by jumping into an uncertain environment. This results in a lack of competition among insurance companies in individual states.
The billion dollar question is, how will this lack of competition affect 'We the People'?
History dictates that lack of competition stifles innovation and customer service, while driving up prices. It's precisely why we have antitrust law in this country, which thrives on free market principles and ideals.
The Examiner compares our new government-regulated health care system with public utilities, citing The Heritage Foundation's Robert Moffit:
"The characteristics of public utility economics are markets dominated by a few large firms, with low rates of return and captive customers, in which the firms' pricing power is constrained by government regulation, but government's exercise of regulatory power is constrained by the need to keep the remaining firms profitable to avoid the widespread social and economic dislocation that would occur should they be driven out of existence. In essence, this is a prescription for achieving market equilibrium through an economic "mutually assured destruction" stand off - with little or no remaining consumer choice or product innovation."
Our proud American reputation for being top-notch health science innovators is going the way of the handsome jock from high school - gain about 50 pounds, lie on the couch all day and reminisce about the past.
Now, let me paint an even uglier picture...
A study, commissioned by California, came out in March reporting that Obamacare will drive up individual insurance premiums in the state.
Wealthier people could see premiums increase by an average of 30%. Lower income people will be able to offset most of the increase via subsidies. That means the middle class will fall somewhere in between.
Well, so much for lower premiums.
Heck, so much with Obamacare!
For more on Obamacare, check out 15 Obamacare Facts the President Doesn't Want You to Know
Related Articles:
- Money Morning:
Why Workers Are Getting Squeezed by Obamacare - Los Angeles Times:
UnitedHealth, Aetna and Cigna opt out of California insurance exchange - The Examiner:
Nation's largest health insurer ops out of California's Obamacare exchange - The Heritage Foundation:
Health Care Consolidation and Competition after PPACA - The New York Times:
Health Care Law Will Raise Some Premiums, Study Says - Milliman Client Report:
Factors Affecting Individual Premium Rates in 2014 for California
Guest Editorial 24 May, 2013
-
Source: http://feeds.moneymorning.com/~r/moneymorning/jOLe/~3/XPBwLQv00-8/
--
Manage subscription | Powered by rssforward.com
