The purpose of the Obama health care legislation was to increase insurance coverage. To have more individuals covered, and thus claim medical care, should they need it, under insurance. However, there are a number of price controls already in the pipeline, and some already implemented.

*Raising premiums. Currently, the legislation does not prohibit the raising of premiums, although the Obama administration have already tried to do so. It is probably just a matter of time.

The effect, will of course, to be reduce competition, as providers leave the business. No private business will set out to make a loss. Setting premium prices is fraught with assumptions and risk already, without adding further risk to the mix.

With reduced competition, or providers, will come less insurance, as adverse selection starts to play a part, and claims rise, which, again, requires a premium raise, which is not permitted, until eventually, you drive out all insurance altogether, which rather defeats the object.

Further, with huge government inflation driving costs other than the risk of insurance claims higher, how is it possible to pass on higher dollar cost benefits, for the same premium? Not that I am a huge fan of insurance companies, far from it, but legitimate cost increases driven by government inflation is unfortunately a legitimate reason for premium hikes.

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