nos-trum. pronunciation: \nos'-trum\. noun. Etymology: Latin, neuter of noster our, ours.
1. a medicine of secret composition recommended by its preparer but usually without scientific proof of its effectiveness.
2. a usually questionable remedy or scheme.
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Saturday, May 22, 2010

Obamacare Lite in MA Imposes Price Controls, The Result As Predicted

Economists tell me that price caps never work, but that doesn't stop MA from learning the lesson again.

The Boston Globe reports that the top four insurers in Massachusetts (all non-profit) have lost $116M since the Governor imposed price controls on their health insurance plans in April.

The state's response to the loss was that those plans had plenty of reserves (they are required by law to maintain) to dip into.

So, how long do you think it will take at this rate for the plans to exhaust their reserves covering the losses?

This is like that joke about airline emergencies:  Question: "How far will the airplane takes us on only one engine?"  Answer:  "All the way to the crash site."

At this rate the crash will come, and the companies will be insolvent  (Note once again:  these are NON-profit insurers).

[For those who've bought the Administration's propaganda about evil insurers, go look up the data:  Health Insurance Plans rank 105th in profit margin (4.7%).  The beer and cigarette industry rank 14th and 11th, with profits of 18 and 14 percent. go here.]

For some, the health plan losses will be cause for cheering.  It's what they intended all along, so the government could step in and take over. (As was repeatedly warned before the reform law was passed.)

For others, not the political elite--the patients, the result will be cancellation of their coverage and being thrown into a government-designed set of benefits that may not match what they want for themselves and their families.

Once again (this is getting monotonous) the President's pledge--"you will keep your plan"--is shown to be disingenuous.

Doc D

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