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Politically-controlled exchanges & ACOs are about authoritarian control, not competition & accountability

John Goodman critiques the health control bill, HR 3590:

For Obama, the purpose of the health insurance exchange is not to bring needed competition to an imperfectly competitive market. The purpose is to exert control over the industry. If you believe in competition, then you want lots of competitors. But the administration is imposing rules and regulations that are driving insurers from the market, as we have previously reported here, here and here. In fact, some careful observers believe that by the time the exchanges become operational in 2014 there will be only one or two insurers left in most markets. …

This same attitude is reflected in the administration’s approach to ACOs. …

So if competition is not the vehicle for controlling costs, what is? Global budgets. ObamaCare will force health plans to provide a nonnegotiable package of benefits, but will hold premiums at a level that will make it impossible to meet the full demand for that care. Instead, costs will be controlled by squeezing provider incomes and delaying access to care — just as it is in other countries.

Read more: The Global Budget in Your Future | John Goodman’s Health Policy Blog.