Audio Clips

01 August 2011

Why Does Health Insurance Keep Getting More Expensive?

Because the government can't stay out of it.

The Obama administration was able to successfully require insurance companies to pay for birth control. I'm not interested in having a discussion on the morality of birth control I'm only interested in this as an economic impact and this is a perfect example of one of the reasons health insurance keeps going up. When the government makes it a requirement that insurance companies pay for certain health care cost, they are, naturally, going to spread that cost across all their customers' bills. Therefore, the unintended consequence is that all our health insurance bills go up.

If the government would just mind their own business then insurance companies could create multiple types of insurance contracts. If I'm a single guy I don't necessarily want to pay for birth control in my insurance premium. But if the government requires it be in the policy, then I have to pay for it regardless of whether I want it. Why shouldn't I be allowed to find a policy that fits my desires?

Instead of being able to invent all kinds of insurance programs, the market is forced into a one-size fits all (or, at best, a few sizes-fit-all) option. That's nonsensical. With 300 million different people living in this country, there are bound to be millions of different needs and wants. Who on earth believes that the government knows how to answer those desires?

But, of course, you know the answer to that. Government believes that they know how to provide for your needs and wants. Because they're smarter than you.

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