Comments on: Did Health Care Reform Help Massachusetts? http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/ Politics and Culture from a Catholic perspective. Thu, 09 Feb 2012 18:37:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stephanie Hunter http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13300 Stephanie Hunter Fri, 06 Nov 2009 18:07:11 +0000 http://the-american-catholic.com/?p=14421#comment-13300 I do know health care has shown remarkable improvement in Ohio. In no small part, thanks to non-profit health management companies that are serving many many people. Here's just one. http://cli.gs/z3AtaY/ I do know health care has shown remarkable improvement in Ohio. In no small part, thanks to non-profit health management companies that are serving many many people. Here’s just one. http://cli.gs/z3AtaY/

]]> By: DarwinCatholic http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13299 DarwinCatholic Fri, 06 Nov 2009 16:19:27 +0000 http://the-american-catholic.com/?p=14421#comment-13299 I'm not sure that increasing the demand would increase the cost of health insurance, since it doesn't seem to me that coverage itself would necessarily be a supply constrained product. (If this resulted in the total consumption of health care services significantly increasing, which is certainly possible, that might result in a temporary cost of care increase as contrained provider supply resulted in higher prices to slow demand and fund building new infrastructure, training new people, etc.) More to the point, though, is this: Unlike the proposals that center around high deductible insurance combined with funded health care spending accounts -- the proposals being pushed by the Democrats do nothing to increase price competition among medical providers, and nothing to encourage people to avoid unnecessary treatment. That said, it's main effects will be guaranteeing issue to those with medical problems that current have them outside the individual insurance market and forcing into the market those who are currently staying out voluntarily. (Employer insurance generally doesn't have this problem, so this is really just an issue for about 10% of Americans.) It will probably do a lot more of the former than the latter, because for people who are being kept out of the insurance market by costs, the fine for not getting health insurance will almost always be a lot less than the amount you'd be required to pay out of pocket for getting health insurance (even after government subsidies.) On top of this, the CBO is projecting that the "public option" will actually cost more than the average individual plan currently does. I’m not sure that increasing the demand would increase the cost of health insurance, since it doesn’t seem to me that coverage itself would necessarily be a supply constrained product. (If this resulted in the total consumption of health care services significantly increasing, which is certainly possible, that might result in a temporary cost of care increase as contrained provider supply resulted in higher prices to slow demand and fund building new infrastructure, training new people, etc.)

More to the point, though, is this: Unlike the proposals that center around high deductible insurance combined with funded health care spending accounts — the proposals being pushed by the Democrats do nothing to increase price competition among medical providers, and nothing to encourage people to avoid unnecessary treatment.

That said, it’s main effects will be guaranteeing issue to those with medical problems that current have them outside the individual insurance market and forcing into the market those who are currently staying out voluntarily. (Employer insurance generally doesn’t have this problem, so this is really just an issue for about 10% of Americans.) It will probably do a lot more of the former than the latter, because for people who are being kept out of the insurance market by costs, the fine for not getting health insurance will almost always be a lot less than the amount you’d be required to pay out of pocket for getting health insurance (even after government subsidies.) On top of this, the CBO is projecting that the “public option” will actually cost more than the average individual plan currently does.

]]> By: c matt http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13298 c matt Fri, 06 Nov 2009 15:12:41 +0000 http://the-american-catholic.com/?p=14421#comment-13298 Insurance isn't like a manufactured product or service with finite supply, in a sense. A company can make only so many widgets; lawyers can only provide X amount of hours per day (theoretically). A health insurer can write as many insurance policies as the law will allow. There may be some regulatory issues wrt reserves and financial health, so that may restrict the supplyside somewhat, but if the Govt wants universal coverage, they will have to allow adjustment for it. So, with a potentially unlimited (or near unlimited) supply, an increase in demand should not affect price. Change in risk pool, however, would. Oh, and for those who think tort reform will help - Texas has had tort reform for 30 years. One of the larger health insurers (Unicare) is now calling it quits in Texas. So much for tort reform. Insurance isn’t like a manufactured product or service with finite supply, in a sense. A company can make only so many widgets; lawyers can only provide X amount of hours per day (theoretically). A health insurer can write as many insurance policies as the law will allow. There may be some regulatory issues wrt reserves and financial health, so that may restrict the supplyside somewhat, but if the Govt wants universal coverage, they will have to allow adjustment for it.

So, with a potentially unlimited (or near unlimited) supply, an increase in demand should not affect price. Change in risk pool, however, would.

Oh, and for those who think tort reform will help – Texas has had tort reform for 30 years. One of the larger health insurers (Unicare) is now calling it quits in Texas. So much for tort reform.

]]> By: Blackadder http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13297 Blackadder Fri, 06 Nov 2009 05:02:08 +0000 http://the-american-catholic.com/?p=14421#comment-13297 RR, I'm not sure I follow your logic. Let's be simple-minded for a moment and assume that health insurance is subject to the law of supply and demand (ridiculous, I know, but bear with me). A mandate means a increase in the demand for health insurance (since people who wouldn't otherwise have bought insurance are now forced to do so). Shouldn't we expect this increase in demand to lead to an increase in the price of insurance? RR,

I’m not sure I follow your logic. Let’s be simple-minded for a moment and assume that health insurance is subject to the law of supply and demand (ridiculous, I know, but bear with me). A mandate means a increase in the demand for health insurance (since people who wouldn’t otherwise have bought insurance are now forced to do so). Shouldn’t we expect this increase in demand to lead to an increase in the price of insurance?

]]> By: Rick Lugari http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13296 Rick Lugari Fri, 06 Nov 2009 01:56:43 +0000 http://the-american-catholic.com/?p=14421#comment-13296 You're just pointing out the poor results and insane cost because you want sick people to die! ;) You’re just pointing out the poor results and insane cost because you want sick people to die!
;)

]]> By: restrainedradical http://the-american-catholic.com/2009/11/05/did-health-care-reform-help-massachusetts/#comment-13295 restrainedradical Fri, 06 Nov 2009 00:10:03 +0000 http://the-american-catholic.com/?p=14421#comment-13295 <i>We can be virtually certain from these results that the cost of medical coverage will go up significantly under the current Democratic proposals, it’s just a question of how much.</i> Depends. It'll go down for the sick. I'll go up for the healthy. On average, it'll go up because more sick people than healthy people will buy insurance. But then guaranteed issue will naturally lead to a mandate. So under the current Democratic proposal, it's virtually certain that in the long term the cost of medical coverage will not be affected. We can be virtually certain from these results that the cost of medical coverage will go up significantly under the current Democratic proposals, it’s just a question of how much.

Depends. It’ll go down for the sick. I’ll go up for the healthy. On average, it’ll go up because more sick people than healthy people will buy insurance. But then guaranteed issue will naturally lead to a mandate. So under the current Democratic proposal, it’s virtually certain that in the long term the cost of medical coverage will not be affected.

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