The Lesson of State Health-Care Reforms
Posted by admin in Failed Policy, US Healthcare SystemFrom the Wall Street Journal
The major provisions of ObamaCare already have been tried. They’ve led to increased costs and reduced access to care.
By Peter Suderman – Supreme Court Justice Louis Brandeis famously envisioned the states serving as laboratories, trying “novel social and economic experiments without risk to the rest of the country.” And on health care, that’s just what they’ve done.
Like participants in a national science fair, state governments have tested variants on most of the major components of the health-care reform plans currently being considered in Congress. The results have been dramatically increased premiums in the individual market, spiraling public health-care costs, and reduced access to care. In other words: The reforms have failed.
New York is exhibit A. In 1993, the state prohibited insurers from declining to cover individuals with pre-existing health conditions (”guaranteed issue”). New York also required insurers to charge those enrolled in their plans the same premium, regardless of health status, age or sex (”community rating”). The goal was to reduce the number of uninsured by making health insurance more accessible, particularly to those who don’t have employer-provided insurance.
It hasn’t worked out very well, according to a Manhattan Institute study released last month by Stephen T. Parente, a professor of finance at the University of Minnesota and Tarren Bragdon, CEO of the Maine Heritage Policy Center. In 1994, there were just under 752,000 individuals enrolled in individual insurance plans, or about 4.7% of the nonelderly population. This put New York roughly in line with the rest of the U.S. Today, that percentage has dropped to just 0.2% of the state’s nonelderly. In contrast, between 1994 and 2007, the total number of people insured in the individual market across the U.S. rose to 5.5% from 4.5%.
Entries (RSS)