Thursday, July 16, 2009

The End Of Private Health Insurance

If the Democrat health insurance plan passes it will mean the end of private health insurance.

When we first saw the paragraph Tuesday, just after the 1,018-page document was released, we thought we surely must be misreading it. So we sought help from the House Ways and Means Committee.

It turns out we were right: The provision would indeed outlaw individual private coverage. Under the Orwellian header of "Protecting The Choice To Keep Current Coverage," the "Limitation On New Enrollment" section of the bill clearly states:

"Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day" of the year the legislation becomes law.

So we can all keep our coverage, just as promised — with, of course, exceptions: Those who currently have private individual coverage won't be able to change it. Nor will those who leave a company to work for themselves be free to buy individual plans from private carriers.

From the beginning, opponents of the public option plan have warned that if the government gets into the business of offering subsidized health insurance coverage, the private insurance market will wither. Drawn by a public option that will be 30% to 40% cheaper than their current premiums because taxpayers will be funding it, employers will gladly scrap their private plans and go with Washington's coverage.
Something on the order of 80% of all Americans are satisfied with their health insurance. Are they going to be surprised if this turkey passes.

And it will also mean a reduction of labor mobility for those who like their health care. I like the Republican plan a little (not much) better. It would create a national market for health insurance.

I do think regulation of health plan solvency is a good idea. What I don't like is State mandates for this coverage or that coverage. Let the insurance companies devise the plans not State Governments.

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