Monday, September 29, 2014

Sticker Shock

 
 


"Preferred One gave MNSure artificially low rates. Once Preferred One discovered these rates were unsustainable, they pulled the plug..."



I remember a discussion I had a few years ago with someone from the other side of the political divide. When that person asked (in my opinion), what the difference was between Progressives and Conservatives I crafted a very carefully worded response. I told this person that Progressives really did believe in a "free lunch", whereas Conservatives believed that everything that government does involves a cost and a price.

Well as President Obama's former pastor would say, "The chickens have come home to roost (on MNSure)". For months and months, the snake oil salesman has told the unsuspecting masses this new wonder drug called MNSure (along with it's big brother ObamaCare), was going to give all of us more for less. In fact, so many costs would be wrung out of the bloated former insurance business, we would have saved money falling out of our pockets.

Many of the Right were sounding the clarion alarm. "Don't believe it! Beware!" However, eyes glazed over on the Left, and many supported this new and wonderful insurance system. Those who were paying attention however, remembered how this thing was cobbled together in Congress. It had all the roses and none of the thorns. By thorns, I mean cost containment. The Republicans had plenty of good ideas on how to make the current system more affordable (like getting tort reform). But alas and alack, tort reform would have eroded the Democratic base, so that was left out. It became a Democratic crafted pile of goodies. 

What we ended up with was a system which offered everything to everyone and then mandated Nixonian type wage and price controls. As history demonstrated, wage and price controls did not work well in the 70's, and they will not work well today.

Later on this week, a hard rain is going to fall in Minnesota. And it has nothing to do with the weather. MNSure is going to disclose it's true rates for next year. With Preferred One out of the mix, companies are going to price out their rates to cover costs and risks. Even the most ardent supporters of MNSure say this will not be pretty.

MNSure will now take it's place in the long line of "free" programs which are not "free". For example, all day kindergarten is not "free" . It is touted as such, but there is a huge cost. Two year tuition freezes at our colleges and universities are not free. They still have unsustainable and increasing costs. Even though these increased costs may not be paid by students, they need to be paid by someone.

ObamaCare and MNSure are two things people did not ask for. The ruling statists told us we needed them. If the question was asked about needed reform in our healthcare system, the consensus would have been almost universal. However, to scrap the old reliable system and replace it with this house of cards, remains highly unpopular with more and more people.

While growing up, most of us heard from our parents there is no "free lunch". Some of us actually listened to them.   

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