Democrats and their media allies have found a new insurance piñata: WellPoint and its recent health-premium price increases in California. This spat deserves more attention, because its real lesson is what will happen to health insurance costs around the country if ObamaCare passes.
This episode is a preview of the adverse selection that would happen nationwide if ObamaCare passes. The Democratic bills would control what insurers could charge and force them to take all comers, regardless of health status. These burdens were supposed to be made tolerable by requiring all Americans to buy insurance or face a penalty. Yet when this “individual mandate” proved to be unpopular, Congress watered it down so that younger customers would be able to pay the penalty knowing they can wait until they’re sick to pay the more expensive premiums. The only way an insurer can make up for these higher costs is to raise premiums.
A very interesting piece from the Wall Street Journal. Of course, the added costs and burden placed squarely on the shoulders of the insurance companies is something that I’ve discussed time and time again here at America’s Right — the piece I wrote in response to Barack Obama’s speech to a joint session of congress back in September comes to mind, and his chock full of solid facts and realities.
Still, when it comes to the adverse consequences of increased government involvement in the private sector and in our daily lives, I don’t think redundancy is all that bad — go check out the rest of the Journal piece.