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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Friday, June 11, 2010

Health Insurers Failing Under Price Controls In MA...Duh.

In double whammy, three MA insurers are warned that their financial health is weak, after being denied rate increases.

I love how the government works.  Imagine you're running a business:  you make widgets.  The government puts a cap on how much you can charge for your product.  Then selling at below cost, your bottom line starts to crumble.  And the government commission overseeing your industry comes in and puts you on notice that your financial strength is weakening.

As reported by the Boston Herald (June 11),
"Yesterday, furious health insurers said the conflicting messages - of publicly limiting their revenue by imposing rate caps, then privately telling them their businesses are in trouble - proves that the rate hike battle of this spring was politically motivated"
Critics warned back during the health care reform debate that government monitoring and oversight was just the foot in the door needed to squeeze the health insurance industry out of the government could find itself "the last man standing."

For the supporters of the law, this is all going as planned.

And here we see the beginnings of that plan to reach a single-payer health care system demonstrated  in Massachusetts.  Coming to a theater near you...the same thing.

For those who believed the government was going to "introduce better competition" in the market, you can now see how wrong and naive that was.

Doc D

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