Widely cited CBO scores have their shortcomings
Let's look closer at what CBO "scores" actually say and don't say. CBO doesn't look beyond immediate, first-order consequences of legislation. CBO doesn't take into account how people will adjust their private arrangements in response to publicpolicy changes. CBO technicians are loath to speculate what these adjustments might be, and rightfully so: because these involve thousands or millions of future private decisions. Unintended consequences, which are inevitable in major policy changes, are, by definition, unintended, and can't be foreseen with any degree of accuracy.
Suppose
CBO would duly write this up in acceptable bureaucratese. And the next morning's headlines would be (we're dead serious): "4 million black slaves to lose jobs." With the subhead: "Nonpartisan agency says starvation looms for thousands." No doubt there'd be a sidebar: "Anti-war senator calls Lincoln a murderer."
We know that, in the real world, this isn't at all what happened. Some ex-slaves ended up as paid laborers or sharecroppers with their old master. Some made arrangements with other employers. Some struck out on their own and moved from the South. The CBO's analysis that "4 million slaves will lose their current jobs" would be both technically correct and horribly wrong in its implications.
So it goes with health insurance. If we remove the penalty for not buying government-approved insurance, some people will not buy the insurance. But they won't be worse offnot buying a product they were forced to buy in the first place. Of course, being freed from the obligation to buy health insurance is hardly the moral equivalent of being freed from involuntary servitude, but the implications of CBO scoring are the same.?¢


A.M. Best Affirms Credit Ratings of Lloyd’s
As GOP health care plan collapses, Daines again supports repealing Obamacare without replacement
Advisor News
- The rise of the ‘gray divorce’ insurance client
- Succession planning: Building the future of your practice
- From loss to security: Supporting widowed clients with life insurance
- Plan now for lower Social Security benefits later
- The conversation almost no advisor is having yet
More Advisor NewsAnnuity News
- Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
- Industry pushes back on linking ‘financial strength’ to annuity illustrations
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
- Cayman Islands premier to meet with U.S. reinsurance regulators
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- Wildfire smoke, increasing in frequency, has implications for morbidity
- Record IUL sales don’t diminish the need for continued customer engagement
- Benchmark International Successfully Facilitated the Transaction Between National Group Marketing Trust and New Era Life Insurance Companies
- Why the bond market is flexing its muscles, and why everyone needs to care
- An Application for the Trademark “LIVE TODAY, SECURE TOMORROW.” Has Been Filed by Security Mutual Life Insurance Company of New York: Security Mutual Life Insurance Company of New York
More Life Insurance News