Friday, February 03, 2012
Don’t Depend Totally on Government
Massachusetts
is currently providing a vivid example.
Some time ago, in the name of health care cost reduction, a law was
enacted requiring health insurance companies to offer so-called “tiered”
policies that, in return for lower premiums, provided for higher deductibles if
subscribers used high-cost, prestigious hospitals like the Massachusetts General.
The temptation of politicians to appeal to the disaffected
is an important limitation on their ability to implement reform.
People signed up. But
of course some of them who didn’t think they’d get sick did get sick, and then
wanted to use the big name provider after all.
They could but found it unpleasant, if not impossible, to
pay the higher deductible (like $1500 rather than $100).
Their plight came to the attention of legislators who, as
reported in the February 1 issue of the Boston Globe, have drafted legislation
providing for “exceptions.”
The Globe, in its editorial on the subject, pointed out that
since the scope of the problem was not yet known, “….the Legislature should
hold off, lest it undermine its own goal of making health care more
affordable.”
Whether or not it will hold off remains to be seen but for
me, the lesson to be learned is this: if
you are serious about reform, don’t depend totally on government.