Real Health Care Reform

Sometimes, predicting the future is easy.

AHIP has now analyzed the provisions in the current healthcare proposal, and they’ve come to the same conclusion.

According to Karen Ignagni, AHIP’s president and chief executive, “The report makes clear that several major provisions in the current legislative proposal will cause health care costs to increase far faster and higher than they would under the current system. Between 2010 and 2019 the cumulative increases in the cost of a typical family policy under this reform proposal will be approximately $20,700 more than it would be under the current system.”

It does not take a sophisticated understanding of economics to see why rates will be going up rapidly. Here are the basics: (more…)

Why I like to call the senate bill the “Health Insurance Premiums Increase Bill.”

The Senate should be voting on a bill next week.

As it stands now, the bill mandates that starting in 2013 everybody must carry health insurance. It will be guaranteed issue, so everyone will be approved no matter what your health condition.

Typically, when coverage is guaranteed issue, the rates are much higher. In the five states that currently have guaranteed issue laws (New York, New Jersey, Massachusetts, New Hampshire, and Maine), rates are at least twice as expensive as here in Colorado where I live.

But to prevent this from happening, Congress will mandate that everyone carry coverage. That way the healthy people will be putting money in the system to pay for the bills of all the unhealthy people that will be having surgeries, getting medication, having tests run, and going to the doctor. (more…)

The real purpose of the public option is a total government take-over of health insurance, that will reduce, not increase, competition. There are much better ways to promote competition.

We’re getting close, folks. The Senate Finance committee will soon be voting on a bill, as will the House.

Here is what Greg Scandlen says is coming with whatever they do:

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One of the key aspects to creating a consumer-driven healthcare system – with real choice and competition – is to reform federal tax treatment of health insurance.

Currently, there is an unlimited tax break available for employer-sponsored health insurance. But individuals and families buying coverage on their own don’t get this tax break.

Instead, individuals should get their own tax break, or even better a tax credit, so that they can afford to go into the individual marketplace and buy their own coverage, rather than depending on their employer to buy health insurance for them. (more…)