Government Program Cuts Premiums Again
Wouldn’t it be nice to be an insurance company who didn’t have to worry about profits when it comes to increasing enrollment! The federal government has decided that its competing guaranteed issue, cover all pre-existing conditions insurance policy isn’t cheap enough, so it has lowered the cost for a SECOND TIME this year. According to a WSJ article in the June 21 issue, the government originally estimated 350,000+ people would join the program in its first 6 months(7/1/10-12/31/10). However, the results show that after one full year in existence only 22,000 people have signed up for the government program, even after it dropped the premiums in January. So it is cutting premiums a second time and loosening standards.
This is the type of competition that the government says the insurance companies will have to face to prove they want to cover Americans. It doesn’t seem fair that if the government program isn’t getting the interest it estimated they just loosen standards and lower costs. Our tax dollars are paying for the government to compete with private insurance companies. The industry has its issues, but so does the government. I prefer a free market and real competition to the government using our taxes to run this type of sham. This is why we are spending 3.5 trillion at the same time we are taking in 2 trillion in tax revenue. Oh, that repeal would come soon for this obvious attempt to take over the industry that has tried to help finance the cost of health care in America.
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