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September 25, 2012

Shocker: Health Insurance Premiums Rose 9.5% in 2011, 4.5% This Year (So Far); Will Spike Even Higher in 2014

Links at Instapundit.

Remember, a central promise Obama made was that his "reforms" would "bend the cost curve downward" and reduce rates.

As rates go up, he's fast to tell people "Yes, but your health care is now more comprehensive, thanks to me, thanks to ObamaCare insisting that all policies pay for these extras."

But bear in mind one of the reasons he claims insurance is so expensive is over-utilization. People getting unnecessary tests. Limb-hunting doctors performing unnecessary amputations.

Over-utilization is something that happens when a good or service is free, as the usual discipline that cost imposes is removed.

He's removed the discipline of cost from a large number of transactions. For example, once upon a time in America, women (and men) used to go to Wal*Mart and pay $6 for their month's supply of contraception.

Not any longer. Now it's all free.

And that same principle applies to all of the mandates he's imposed on insurance.

How is making everything free supposed to reduce over-utilization?

No one knows.

No one in the media asks.

Oh, there is of course one "bend the curve" reform in ObamaCare: rationing by bureaucrats, who will decide if you have enough Useful Years left on your ticker to justify necessary operations.

But he doesn't want to talk about that one. And neither does the Palace Guard Media.



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posted by Ace at 04:51 PM

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