Audio Clips

09 August 2011

Federal Health Care Mandates

About a week ago I posted about the federal mandates that drive the cost of health insurance up. If you want to read a much better article about the subject you can find it here. The Future of Freedom Foundation is a great place to find free market defenses. Here is a highlight from the article:

A shift toward “preventive care” and fewer subsequent treatments is the supposed mechanism for cost savings. But that assumes, incorrectly, that political appointees know what reduces costs better than insurance executives.

Insurers already have an incentive to reduce costs while pleasing customers, so long as states allow competitors into the market. If the mandated policies achieved that, insurers would already offer them for free or reward participation with a discount on premiums. Evidently, applicable items such as contraceptives and “well-woman” preventive care visits do not save money for insurers.

On the other hand, insurance industry-leaders note that coverage mandates, particularly those that bar point-of-treatment pricing, increase unnecessary physician visits. To recoup the cost of those visits, insurers have no choice but to raise premiums for everyone.



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