FreedomTalks

Michael Tanner with more reasons why the only state in the country to mandate health insurance keeps proving that mandates don’t work:

Slightly less than half of Massachusetts’ uninsured population actually complied with the mandate. True, the number of people without health insurance was reduced from 13% of the state’s population to 7%, but when the bill was passed, advocates promised that “all Massachusetts citizens will have health insurance.” Perhaps it depends on your definition of “all.”

Most of those who are signing up are low-income individuals, whose coverage is fully or partially subsidized, proving once again that if you give something away for free people will take it. It certainly appears that it is the expensive and generous Massachusetts subsidies (up to 300% of the poverty level), not the unprecedented individual mandate that is responsible for much of the increased coverage.

Adverse selection remains a big problem, with the young and healthy failing to comply with the mandate. The state refused to change its community rating laws which drive up the cost of insurance for young, healthy individuals. Not surprisingly, they don’t find this a good deal.

The program is far exceeding its projected costs, with at least a 33% budget overrun in its first year.

The program has increased demand for health care services without increasing the supply of providers. As a result, patients are having trouble finding providers and waiting lists (Canada here we come) are beginning to develop.

In New Jersey, it seems, some state legislators are starting to get the message.  Assemblyman Jay Webber recently proposed a bill that would allow individuals to buy health insurance across state lines, which would drive down costs by circumventing burdensome coverage mandates.

This entry was posted on Wednesday, June 4th, 2008 at 12:11 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.