This is Why Government Run Healthcare Will Ultimately Fail

by Duane Lester | January 2, 2009 10:05 am

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The problem with Obama’s plan for government run healthcare is the same as for socialized health care.  Yes, there is a difference, but ultimately, his plan will end up costing more than it is expected too.  I wrote about this extensively here[2]. 

For a great example of why this is destined to happen, look to my great state of Missouri.  Like every other state, it can set the standards for what treatments insurance companies must cover.

Democrat State Representative Steve Hodges says that infertility treatment[3] should be covered by insurance. 

“We spend millions upon millions of dollars trying to assist people, even in terminal situations with cancer, with a lot of different things,” said the bill’s sponsor, Rep. Steve Hodges[4], D-East Prairie. “To me, this is a very positive medical procedure. Nothing but good things could come out of it, and I know everything has its cost, whether it’s good or bad.”

When the insurance companies are forced to add another thing to the coverage, do you think the cost goes up, down or stays the same?  Heritage[5] has the answer:

A major why reason health insurance premiums keep rising is because special interests keep successfully lobbying state legislatures to mandate more and more procedures into all insurance plans. So even though a 25-year-old male has no need for in vitro fertilization and no interest in acupuncture, a state like New Jersey forces him to buy a plan that covers those procedures. The result? That 25-year-old could buy a basic health plan in Kentucky for $960 a year, but the cheapest plan in New Jersey (full of mandates he doesn’t want or need) costs him $5,880[6]. A study[7] for the Health Insurance Association of America found that 20% to 25% of uninsured Americans lack insurance due to benefits mandates.

If Obama can get his plan for healthcare put in place, you will see this all across America.  The lobbyists will go into overdrive getting their procedure covered by law.  This is due to one specific part of Obama’s plan:  everyone is covered, no one is denied.  As more and more treatments get added, the cost will increase.  Those covered by the state will lose nothing, while those paying will lose more. 

Another thing, if you were an employer paying higher and higher health care costs, would you continue to cover an employee who could be covered by the state?  Why would you?

For the naysayers, you need to look to Massachusetts, where the Obama plan gets it’s inspiration.  It’s already happening there, causing the price of the plan to overwhelm lawmakers who have to fund it.

This is cross posted from All American Blogger[8], where you can find other great original articles[9]. Sign up for our free RSS feed[10] so you don’t miss a single post.

Photo Credit:

• zzzack[11]