Monday, April 13, 2009

Oklahoma City Republican Examiner: The coming health care collapse

Robert McIntosh

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The Wall Street Journal has a great article on what will happen to private insurance if the government passes a national health care plan. Under Obama's plan private health insurance will "compete" with the government. Individuals can choose to keep their company sponsored insurance plans or choose the government's.

All sounds pretty good until you start to apply a little common sense into the equation. If the government is giving "free" health care, why on earth would companies spend to billions every year on insurance for employees? The simple answer is they won't. They will drop insurance either to save costs or because employees won't want to pay for even a copay because they can get it "free" right? The result of that will be that the cost for employees will go up even more as these plans are based partially on the number of employees in the plan. The fewer the employees, the higher the cost. The higher the cost, the more likely they will drop it.

Want proof? It happened to Hawaii last year and that was just for child care. They abandoned the system after only 7 months.

So what you say?

Nothing the government provides is free. It is paid for by taxes, and lots of them. As the costs of the program escalate, the government will then start to enforce price controls and rationing. The current Medicare system already costs everybody, including private insurers.....

Oklahoma City Republican Examiner: The coming health care collapse

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