Sunday, January 06, 2013

Why Do Prices Continue to Rise When Government Hath Decreed They Must Fall?

The author of this piece in the New York Times is truly perplexed by this.
Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers. 
How dare the laws of economics not conform to the "objectives" of the Obama administration!

Unfortunately Fortunately, these laws are no more subject to the whims of our political leaders than is the law of gravity. Obamacare piles even more mandates on insurers (in addition to a tax on insurance policies) and greater administrative costs on both insurers and health care providers. Even the provisions ostensibly designed to reduce the cost of health care place greater documentation and administrative burdens on health care providers.

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