Thursday, February 25, 2010

And here come the price controls

From The Washington Post:

President Obama will call for new government power to regulate insurance-rate increases as part of comprehensive changes to the health-care system that the White House will unveil on its Web site Monday, senior officials said.

The proposal -- part of a package that a top official said will serve as a "starting point" for the bipartisan health summit Thursday -- comes as Obama has pointed to recent rate increases as evidence that his proposed changes are necessary.

Last week, Health and Human Services Secretary Kathleen Sebelius drew attention to a California health insurance company, Anthem Blue Cross, which planned rate increases of up to 39 percent. Obama mentioned the increases in his weekly radio address and at a town hall in Nevada.

The new proposal, which a White House official described Sunday night, would give Sebelius new authority to oversee, and potentially block, rate increases that are deemed unfair.

VH: I'm sure that this will work out like other price control schemes have since time immemorial---It will fail miserably. It will make insurance premiums even more unaffordable. You would think that all those Ivy league economists that buzz around the White House would have a clue.


C.C. Mitchell said...

No price control from "Washingtards" is needed.

The free market will in itself deal with insurers who commit to dramatic rate increases. The consumer will simply find another insurer and the greedy S.O.B.s will go out of business.......unless Obama bails them out of course.

In this Cracked World, it could happen!

seran said...

Excellent, Obama. Not satisfied with the existing shortage of health care providers, you will now ensure a shortage of health care insurers as well. Brilliant.