Insurance lobby hoisted by its own petard [Examiner, The (Wash., DC)]
|By Examiner Editorial, The Washington Examiner|
In the end, many key elements of AHIP's
Most major provisions of
All of these provisions will drive up premiums by varying amounts. Like most taxes on goods and services, the health insurance tax will mostly be passed on to consumers in the form of higher premiums. The minimum-benefits requirements will drive up premiums on individuals who have chosen cheaper, less generous health plans. And the restrictions on age variation mean that young and healthy individuals will face higher premiums so they can cross-subsidize older and sicker patients.
Many of AHIP's new criticisms of the law are well-founded, but we find it difficult to shed tears for the insurers. The industry may decry government intervention now, but when it mattered, it was a strong proponent of government regulation and subsidies that benefit the industry. The health care law's insurance exchanges will provide 25 million new customers to private insurers, who will receive
This demonstrates how dangerous and short-sighted it is for big businesses to back government intervention. The long-term problem for the insurance industry is that if premium growth accelerates under Obamacare, interventionists will point to it as proof that the private insurance industry is irreparably broken and that a government-run system is needed. When this happens, AHIP will have helped dig its own grave.
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