Friday, May 31, 2013

I'm shocked that anyone is shocked by Obamacare's "rate shock"

If car insurance companies were forced to offer insurance on broken cars (or cars with "pre-existing conditions"), would you expect rates to go up?  How can you "mandate" more services for more people and expect costs to go down?  Does anyone think that if you get enough "policy" eggheads with calculators that you can defeat reality? Is 2+2 still equal to 4?

Not surprisingly, Forbes's Avik Roy reports that Obamacare health care premiums are expected to go up by 146% in California, "a problem [that] will be especially acute when the law’s main provisions kick in on January 1, 2014, leading many to worry about health insurance 'rate shock.'"

Of course, I do not believe that lower costs was ever the real intention of Obamacare.  Its proponents knew that it was only a stepping stone to so-called universal care where any vestige of a voluntary private market in health care would be completely eliminated.  Once the effects of this distorted mess are felt in terms of higher costs, worse care, longer lines, rationing, etc. it will lead the government to clamor for even more power to "fix" the problems created by these very policies.  This will lead inexorably to a total government takeover where the real costs of yet another entitlement can be heaped onto the gargantuan pile of government debt funded through even higher taxes or through hidden taxes like inflation that result from the government's printing press.  As doctors leave or never enter the profession, as costs spiral upwards, as care is rationed by government edict, the left will realize its egalitarian dream of everyone being equally miserable or equally dead.

If you are unprincipled enough to think that the government has some magic formula for defeating reality, remember, 2+2 still does equal 4.    

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