The Pueblo Chieftain has published an op-ed by John Graham of the . Some excerpts:
In 2008 Colorado passed a law giving the Division of Insurance the power to deny premium hikes. To enhance this power, known as “prior approval,” Obamacare gave Colorado a $1 million grant last year to hire more insurance analysts to review rates.
There is no evidence, however, that such power reduces the growth of premiums below those observed in states where insurance divisions wield no such power. And the future wave of political interference threatens the solvency of health plans in Colorado and other states. …
In a new study, “Bust or Bailout? The Future of Private Health Plans Under Obamacare,” I model Colorado health plans’ future solvency under these conditions — where government control causes health costs to increase, while premiums are kept artificially low.
Although Colorado health plans are currently actuarially sound, the simulation shows that five of the top 10 health plans … would be threatened with insolvency by 2017. The Kaiser Foundation Health Plan of Colorado, largest in the state, would experience an underwriting loss as soon as 2013, and face insolvency as soon as 2015. …
The notion that politicians can control health costs is a conceit of the ruling class. Health costs will only decline when patients, not politicians, directly control more of our health spending. This cannot happen until President Obama’s health law is repealed. In the meantime, Colorado should reject politicized control of insurance premiums.
Read the whole article: Obamacare threatens solvency of Colorado health plans.