NYT: Obama will demonize your insurer until it can't pay your claim 

From the Law of Unintended Consequences department. The New York Times reports on a flaw in President Obama's plans for price controls on insurance premiums:

State officials are leery of the proposal, which raises a host of questions: How would Congress define “excessive”? How would the new federal power relate to state insurance regulation? The proposal has great political appeal. But experts see a serious potential problem: Federal officials will focus on holding down premiums while state officials focus on the solvency of insurers, the ultimate consumer protection.

Economists say that holding down premiums does not necessarily hold down the cost of care, which reflects the prices charged by doctors and hospitals and the volume of services. State officials worry that they would be left to police the solvency of health insurance companies while federal officials pressured insurers to reduce premiums, as Mr. Obama has done in recent days.

For all the liberals who seem to think that insurers are public charities, their real job is to hoard cash so that some day, when you get cancer, they can pay for it. When you put price controls on premiums, and you don't hold down the cost of care (and nothing Obama has proposed will hold down costs), you're basically setting the stage for insurers who can't afford to pay claims.

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David Freddoso

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David Freddoso came to the Washington Examiner in June 2009, after serving for nearly two years as a Capitol Hill-based staff reporter for National Review Online. Before writing his New York Times bestselling book, The Case Against Barack Obama, he spent three years assisting Robert Novak, the legendary Washington... more
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