Still Looking For Alternatives-Charlie Martin At PJ Media: ‘Obamacare vs. Arithmetic’

Full piece here.

Let the markets work!

Click through for some spit-balled suggestions, including some kind of mandate upon all individuals to purchase a basic minimum plan (as Martin acknowledges, this is always open to abuse and expansion of power).

‘Whatever solution we look for though, the really important point is this: the whole basis of Obamacare, the notion that we can have more people, getting more benefits, and pay less, is just impossible. The arithmetic doesn’t work. And if you think that’s “unfair,” I’m sorry.

Avik Roy addressed this before the 2012 Romney/Obama presidential election, before we really started taxiing Obamacare down the runway:

‘Obamacare’s approach to pre-existing conditions, in summary, may help a tiny minority with pre-existing conditions to gain coverage in the short term, but the law will drive up the cost of insurance for everyone else, leading to adverse selection and higher premiums for all. And the price of Obamacare is steep: the individual mandate; trillions in new spending and taxes; deep cuts to Medicare providers.’

Epstein’s position:

The best way to deal with the risk of catastrophe is for people to buy their coverage early, when they are young, so that premiums are low. In any well-functioning market, they can acquire a renewable policy with guaranteed rates. At that point, does it become morally reprehensible to deny additional coverage to those individuals who passed on this possibility? No. Sadly, the abysmal performance of the American healthcare system lies not in the market economy that Kristof deplores, but in the elaborate network of regulation that shrinks the domain of voluntary choices, and leaves consumers with fewer choices than they would have had if the government had just stood by.’

Now the government isn’t just standing-by, it’s forcing people out of their current plans onto exchanges that don’t function, exacting high costs on individuals as part of an enormously flawed law in theory, which is being put into practice.

From Charlie Martin: ‘The Arithmetic Absurdity Of Obamacare’

Full piece here.

I’ve gotten a few emails suggesting there’s been a lot of ‘partisanship,’ on the site lately.  I agree there’s more than usual, but in the face of such a pork-passed monstrosity of a law, with so many bad incentives, so much adverse selection, and young people being forced to work in a system that makes so little sense for them, it’s good to have certain ideas boiled down:

Thanks for any concern.  I assume the risk of driving some people away with all this political talk.

Martin:

Now, what’s the point of this little fable? Basically, this is the story of health insurance. We started off with “major medical,” which was a way to protect yourself against big medical bills that everyone hoped they wouldn’t have; now what we’ve got is that major medical — but we’re also paying for snow-shoveling, er, we’re paying for everyone’s day to day medical care, and we’re paying for it in pretty much the most expensive and complicated possible way: through a federal government agencyand insurance companies.

Related On This SiteRichard Epstein At The Hoover Institution: ‘The Obamacare Train Wreck’

Avik Roy At Forbes: ‘Democrats’ New Argument: It’s A Good Thing That Obamacare Doubles Individual Health Insurance Premiums’Megan McArdle At Bloomberg: ‘Health-Care Costs Are Driven By Technology, Not Presidents’

Richard Epstein At The Hoover Institution: ‘The Obamacare Quaqmire’

Richard Epstein At The Hoover Institution: ‘Watching Obamacare Unravel’

From The New England Journal Of Medicine Via CATO: ‘The Constitutionality of the Individual Mandate’From If-Then Knots: Health Care Is Not A Right…But Then Neither Is Property?… From The New Yorker: Atul Gawande On Health Care-”The Cost Conundrum”Sally Pipes At Forbes: ‘A Plan That Leads Health Care To Nowhere’

Richard Epstein At The Hoover Institution: ‘The Obamacare Quaqmire’

Full piece here.

‘The situation is further complicated because the basic design of these plans is intended to create major cross-subsidies between user groups, which are enforced by the guaranteed issue and non-discrimination rules that apply to all health coverages on the exchanges. Those requirements mean that it is impossible for insurance companies to deny coverage to any applicant except on very narrow grounds that relate to oversubscription. One major threat to standard insurance coverage is that the insured has more information about his or her condition than the insurer. In traditional insurance law, the insurer was therefore entitled to require full disclosure about the relevant risk in order to price the coverage appropriately, or to decline it altogether.’

What is the end game if insurers can’t properly account for risk?

Related On This Site:    From The New England Journal Of Medicine Via CATO: ‘The Constitutionality of the Individual Mandate’From If-Then Knots: Health Care Is Not A Right…But Then Neither Is Property?… From The New Yorker: Atul Gawande On Health Care-”The Cost Conundrum”Sally Pipes At Forbes: ‘A Plan That Leads Health Care To Nowhere’Peter Suderman At The WSJ: ‘Obamacare And The Medicaid Mess’From AEI: ‘Study: ‘Obama Healthcare Reform Raising Costs, Forcing Workers Out Of Existing Plans’