Peter Suderman looks at the results we've seen from the states that have tried health insurance reforms similar to those being touted in the Democrats' bills. The results have salutary lessons for those thinking to apply the same principles to the rest of the country. Across the board we see higher premiums, fewer doctors, and more people being thrown into the government plans.
New York's experience with guaranteed issue and community rating is not unique. In 1996, similar reforms in Washington state preceded massive premium spikes in the individual market. Some premiums increased as much as 78% in the first three years of the reforms—or 10 times medical inflation—according to a study presented at the annual meeting of the Association for Health Services Research in 1999. Other results included a 25% drop in enrollment in the individual market, and a reduction in services offered. Within four years, for example, none of the state's major carriers offered individual insurance plans that included maternity coverage.
A 2008 analysis by Kaiser Permanente's Patricia Lynch published by Health Affairs noted that in addition to Washington and New York, the individual insurance markets in Kentucky, Maine, Massachusetts, New Hampshire, New Jersey and Vermont "deteriorated" after the enactment of guaranteed issue. Individual insurance became significantly more expensive and there was no significant decrease in the number of uninsured.
And if you think that an individual mandate is the answer, think again.
New York's experience with guaranteed issue and community rating is not unique. In 1996, similar reforms in Washington state preceded massive premium spikes in the individual market. Some premiums increased as much as 78% in the first three years of the reforms—or 10 times medical inflation—according to a study presented at the annual meeting of the Association for Health Services Research in 1999. Other results included a 25% drop in enrollment in the individual market, and a reduction in services offered. Within four years, for example, none of the state's major carriers offered individual insurance plans that included maternity coverage.
A 2008 analysis by Kaiser Permanente's Patricia Lynch published by Health Affairs noted that in addition to Washington and New York, the individual insurance markets in Kentucky, Maine, Massachusetts, New Hampshire, New Jersey and Vermont "deteriorated" after the enactment of guaranteed issue. Individual insurance became significantly more expensive and there was no significant decrease in the number of uninsured.
The Obamanians came in telling us that they would make decisions based on facts and research. Yet they seem to be ignoring the data that is out there on the results of the very reforms that they're pushing.
Despite these state-level failures, President Barack Obama and congressional Democrats are pushing forward a slate of similar reforms. Unlike most high-school science fair participants, they seem unaware that the point of doing experiments is to identify what actually works. Instead, they've identified what doesn't—and decided to do it again.
Sadly, the result will damage our health care in this country for everyone's future. Gosh, I wish that our nation's solons on Capitol Hill would take advantage from the lessons we could be learning from the laboratories of democracy in our states instead of simply repeating their mistakes.
1 comments:
Wouldn't it be nice if the people who care about liberty would pool their money and run some tv ads to tell this to the voters? Unfortunately, the only people getting the word out on any kind of organized basis are the rent-seekers and the left-wing ideologues.
Liberty never had a chance.
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