This is the provocative title of Dr.‘s recent article in Pajamas Media. It begins:
Suppose our government declared that everyone had the “right” to a nice steak dinner. The government would require restaurants to sell $50 steak dinners to all comers. But to keep prices affordable, restaurants could only charge $25. No restaurant could survive long under such a scheme, and most Americans would be outraged at such a blatant violation of restaurant owners’ rights.
But that is exactly what is happening with health insurance in. Events unfolding now in the Bay State should serve as a warning to the rest of America of the danger poses to our health insurance, our health care — and ultimately our lives. …
However, insurers are not allowed to set prices based on market conditions, but must instead petition the state for rate increases.
Recently, the Massachusetts state insurance commissioner rejected 235 of 274 requested rate increases.
Insurers filed suit against the state, arguing that without these rate increases they would be forced to sell their services at a loss. The state then “delisted” the complaining insurers from the government-run exchange where residents purchase plans. Under government pressure, at least two insurers then agreed to resume sales under the old prices.
Insurance companies in Massachusetts are thus required to offer numerous benefits as determined by politicians and lobbyists, but they may only charge what government bureaucrats permit. It would be akin to the government requiring restaurants to sell $50 steak dinners, but only allowing them to charge $25.
Read the whole article: ObamaCare: Insurers Need Permission to Survive; Citizens, to Live.
- #ThanksObamacare for ineffective authoritarian health plan rate review
- Obama Care will emulate Massachusetts’ health “reform” failure
- Colorado authorities forbid insurers from increasing rates. OK, now the dark side.
- Colorado insurers seek to raise premiums in response to ObamaCare