I just saw Anita Dunn on Meet the Press say we have to pass health care reform because we need to cut costs. How is the bill that’s being voted on tonight supposed to do this? According to CBS News’ report on the legislation,
Major consumer safeguards take effect in 2014. Insurers prohibited from denying coverage to people with medical problems or charging them more. Higher premiums for women would be banned. Starting this year, insurers would be forbidden from placing lifetime dollar limits on policies and from denying coverage to children because of pre-existing medical problems.
This means that insurers will have to charge everybody equally, regardless of health. The healthiest individual will pay the same amount as the most gluttonous pig. This is socialism, no matter how you look at it.
While I get that, how does anybody even pretend that this will reduce health care costs? Obviously forcing a lot of people that the insurers don’t consider good risks into policies at the same price per head as everybody else will only make things more expensive for those who currently have coverage. This is why Massachusetts has the highest health care premiums in the country.
Democrats seem to disagree on whether they have the votes or not so there's still hope.
There are two possible explanations of what the Democrats are doing here. Perhaps they're trying to destroy the insurance industry so that government will have to step in and "solve" the latest problem its created with an actual public plan. Or, they're so ignorant of economics they don't understand what causes prices to rise and fall. They simply believe that what we pay for things depends on how much state benevolence there is to counteract corporate greed. I believe that the smarter ones are banking on the former, while the majority don't really know what they're doing.