Reform Is Not Free

If we wanted something to learn from government is that when government tinkers with something it will usually come out worse than the way it was. First comes credit card regulation where the government tries to do something nice for the people of our nation, but the credit card companies try to take their toys away and tell the customers, since we can not exploit you anymore, your normal annual percentage rates for our loan products will have to go up to compensate for what we are not allowed to do anymore. Now we have health care regulation and it will give you more migraines than private industry could do for you today.

There are many different options for health care reform being proposed today. One of the reforms is the one established in Massachusetts where all of us would be mandated to purchase health insurance and even if you purchase an insurance plan it has to meet government requirements else you will be taxed. This is one reason why former Governor Romney will be irrelevant in 2012 for the Republican nomination, because he signed for this monstrosity. This proposal from Senator Baucus of Montana is basically a bailout bill to the insurance industry, but if the insurance industry needs younger people to help pay for the older people’s medical concerns, they need to make insurance affordable so younger people would go from the uninsured to the insured.  However this insurance mandate is only going to make things worse from sea to shining sea. Insurance premiums have risen 8-10 percent a year in the bay state, health care rationing will come soon due to a heavy budget deficit due to extra health care spending.

The plan that has the conservative tea party activists and progressives on the left on their nerves for is the public option. The public option limits choice just as much as the Baucus/Massachusetts plan, the public option has rationing as well which makes it unpopular with the general public. However if we are going to go  towards a government takeover, I would rather have the government in charge. Its unfair to bail out the insurance companies and create a government mandate on a private product where we are required to buy their product even though prices are going to rise more than if we had no health insurance reform at all.

In nations that have the public option there are plenty of horror stories from people living in nations such as Canada and the United Kingdom and I would not want these experiences to happen in the United States, but when people have a 15,000 deductable just to get maternity coverage in some parts of California, and insurance companies dumping their ratepayers like hot cakes because they do not want to pay any claims there is a deep desire to get something meaningful done. For now, public option or mandating of purchasing health insurance is not the right idea right now.

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