American Elephants

And Now It’s Price Controls! Doesn’t Anyone Ever Pay Attention to the Evidence? by The Elephant's Child

Massachusetts Health Care was put in place in 2006, and it was to be the prototype for ObamaCare.  It has been instructive, and we all should pay attention.  “Universal coverage” has run up all sorts of bills, and they are now coming due.  The developing cost crisis began almost at once.

Average Massachusetts insurance premiums are now the highest in the nation.  They have climbed at an annual rate of 30% in the individual market.  The costs for small business have increased by 5.8%.  Health spending per capita is now 27% higher than the national average, and the growth rate is faster.

Last month Democrat Governor Deval Patrick proposed hard price controls across almost all of the state’s health care.  Regulators already have the power to cap insurance premiums, which the governor is activating.  He also filed a bill that would give regulators the power to control the rates for hospitals, physician groups and some specialty practices.

For fiscal 2010 taxpayer costs are already $47 million over budget.  As in Washington, politicians attempt to blame insurers.  The real culprit is the state’s insurance regulation.  On average insurers pay $1.12 in benefits for every $1 in premiums.  Making sure that everyone was insured was expected to lower medical costs by cutting back on emergency room visits.  But emergency room visits have increased instead.  State regulations  have mandated that insurance coverage be more generous than the rest of the country.  The average deductible is 28% lower than the  U.S. average, and benefits are more generous with less cost-sharing — thus patients are even more unaware of the actual cost of care.

Massachusetts health care with so many medical schools and high-quality specialists is one of the world’s most envied.

The  Wall Street Journal notes of Gov. Patrick’s price controls:

The goal is to engineer a cheaper system through brute force so government can pay for health care for all. What inevitably suffers is the quality of care for individual patients. Thirty states imposed hospital rate setting in the 1970s and 1980s. Except for Maryland, every one of them eventually eliminated it—including Massachusetts, in 1991—partly because it didn’t control costs.  And partly because it killed people. A 1988 study in the Journal of New England Medicine found that the states with the most stringent rate-setting had mortality rates 6% to 10% higher than those that didn’t.

All of this is merely a preview of what the entire country will face if Democrats succeed with their plan to pound ObamaCare into law in anything like its current form. Massachusetts is teaching the country a valuable lesson in how not to reform health care, if only anyone would pay attention.

4 Comments so far
Leave a comment

Good one! Nice website too. Thanks for dropping by.


Comment by The Elephant's Child

This is one of the most frustrating things about the whole health care reform movement. We see evidences like Massachusetts that this simply is not a successful road to travel and they still want to plow ahead. I love your site 🙂


Comment by crosssection

Where is the MSM on getting the word out? I guess dead people have no impact on the MSM unless it was someone killed in a war during the Bush Administration. Thanks for the blogs pushing out this info. GHA


Comment by Bill

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