Let's re-open the health care debate - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 29, 2023 Newswires
Share
Share
Post
Email

Let's re-open the health care debate

Manchester Journal (VT)

COMMENTARY

According to media reports, Vermont's hospitals are seeking double digit percentage increases in income from patient services for 2024.

At about the same time the Green Mountain Care Board, the state's regulatory agency, issued a decision reducing Blue Cross Blue Shield of Vermont's individual premium rate increase request from 18 percent to 14 percent and its small group plan request from 17.5 percent to 13.3 percent.

These requests for increases are quite significant, well above the effects of overall price inflation, and without any significant increase in patient populations.

How a government regulatory board sets allowable prices is a mysterious process. I daresay 95 percent of our legislators have very little idea how the GMCB goes about its business. To arrive at a government-allowed increase for insurance rates, for example, the GMCB is required to "determine whether [the rates] are affordable; promote quality care; promote access to health care; protect insurer solvency; are not unjust, unfair, inequitable, misleading, or contrary to the laws of this State; and are not excessive, inadequate or unfairly discriminatory.' This charge does not admit to an objective determination.

Not surprisingly, the hospitals and insurance companies petitioning the Board present a long list of explanations about why extraneous circumstances absolutely require their requested rate increases. They hope that they'll still be able to charge enough to get by when the Board, created in the name of "cost containment", changes 18 percent to 14 percent.

Hamilton Davis, a longtime advocate of "health care reform," has written "it was always true that the more important aspect of reform has been cost containment in the delivery system. Failure to rein in [Vermont's Medicaid] inflation rate would destroy any reform effort, single payer or anything else. The bedrock question, therefore, is how to contain costs, and not just damp them down for a year or two or three, but set them on a permanent track at a level no higher than the ability of society to pay the bill."

Let's take a quick trip through 30 years of "health care reform," In 1994 Gov. Howard Dean, aspiring to be "America's young doctor-governor, offered a German-inspired "regulated multiplayer" health insurance plan. Single-payer advocates again pressed to put the government in control of all financing. Both proposals crashed and burned. In 1995 Dean recognized that a system reform was out of the question, and said he would work to expand Medicaid to ever higher income families. He did, and costs soared.

In 2011 new Democratic Governor Peter Shumlin purchased the Hsaio Report as the infallible road map to single payer. However the Legislature wouldn't buy all the provisions that Dr. Hsaio insisted were essential. When the revised proposal was costed out - three years later - Shumlin sadly pulled the plug.

But the idea of government controlled health care financing lives on. In 2016 Shumlin bought into the "all payer" model, built around a monopoly Accountable Care Organization, now known as One Care Vermont. But it didn't reach full monopoly status, and soon became the obvious captive of the aggressively expansive UVM Health Network. Its operating principle is coerced cooperation leading to "integration," aka consolidation.

At the center of this narrative is the determination of "health care reformers" of all stripes to increase government control of health care resources, in an effort to meet all the requirements laid upon it by legislators. Within that regulatory system, all the actors - providers, insurers, politicians, and government bureaucrats - will press every argument available to protect their current and future interests.

There is a wholly different and viable model for quality health care and cost containment, based on market competition and consumer choice. But promoting it in Vermont would disruptively alter the investments in and prospects for what we have today, to the disadvantage of all of today's stakeholders. The best known model is Singapore's, and its components are Medisave, Medishield, and Medifund.

Dr. Phua Kai Hong, of the National University of Singapore, listed as crucial components "the creation of incentives for responsible behavior and the efficient delivery of services; the discouragement of overconsumption through cost sharing; the regulation of hospital beds, doctors, and the use of high cost medical technology; the promotion of personal responsibility; targeted government subsidies; and the injection of competition through a mix of public and private-sector providers."

This is drastically different from 40 years of Vermont's muddled command and control efforts. Singapore's is not a wholly free-market solution, but it has worked for over 60 years. Grant-ed, there are many important differences between Singapore and Vermont, But it's long overdue for Vermont to look beyond the many "stakeholders" jealously guarding their interests, and start looking at tested - and affordable - real world alternatives.

John McClaughry has authored five major health care reports for the Ethan Allen Institute. Opinions expressed by columnists do not necessarily reflect the views of Vermont News & Media.

Older

Bon Secours files lawsuit against Anthem

Newer

Doctors and patients try to shame insurers online to reverse prior authorization denials

Advisor News

  • Women say their advisors respect them, but talk down to them
  • How PEPs compare with traditional 401(k)s
  • Allianz studies why 42% of Americans retire sooner than expected
  • Why advisors should be talking about life settlements
  • Millennials are ready to bring their advisor to the family table
More Advisor News

Annuity News

  • NAIC regulators continue pushing for annuity illustration updates
  • Wink: Flat first-quarter annuity sales fall just short of $100B
  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Matthew Michelini named Athene president, with an eye on annuity growth
  • Lincoln Financial Announces Executive Leadership Transitions
More Annuity News

Health/Employee Benefits News

  • Healthcare system spiraling out of control
  • After Iowa Medicaid goes private, abuse rises, wait for services soars
  • PA House Finance Committee addresses healthcare access, affordability for working Pennsylvanians
  • Report: 60,000 fewer Hoosiers signed up for ACA coverage
  • More Hoosiers go uninsured, resulting in higher emergency department usage
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of CVS Health Corporation’s Aetna Inc. Subsidiaries
  • AM Best Assigns Issue Credit Ratings to The Northwestern Mutual Life Insurance Company’s New Surplus Notes
  • Prudential announces more layoffs as insurer continues to restructure
  • Pradip Patiath Joins Securian Financial Board of Directors
  • Over $107 million in life insurance benefits located for Tennesseans in 2025
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Press Releases

  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet