Sunday, November 3, 2013

Obamacare and Private Insurance

Despite being repeatedly told that you can keep your health insurance coverage if you like, hundreds of thousands, if not millions of Americans are getting cancellation notices in the mail.  It turns out that a lot of health insurance in the private market doesn't meet the definition of what the political appointees at HHS consider adequate coverage.

Maybe the problem is that it does not cover what the regulators think it should.  Because everyone, and I do mean everyone, needs maternity coverage.  If you don't believe me, just ask them.

Or maybe the deductible is too high.  The news coverage I have read is that the limit is $6000.  Higher deductibles than that are being outlawed.  I guess if you have $6000, and are in perfect health, that doesn't really matter.  You can't accept that risk in exchange for lower premiums.  Because someone in Washington decided they knew better than you.

Predictably, many of the people whose policies are being cancelled are finding out new coverage will cost considerably more going forward.  However, they're being told they shouldn't complain, because their new coverage is better, even though it costs more.  It covers more conditions, and kicks in earlier.

This reminds me of what the cable company tells me when they raise my price every year.  "Sure, our price went up 6%.  But look how many more channels you are getting."  News flash for you, buddy: I neither need nor want twelve versions of the Golf Channel.  Golf Grudge Match channel: this time it's personal!  What's up with that?

That's what you get when you hand things over to a monopoly.  And at least I can understand the reasoning of the cable company.  They're trying to maximize their profits.

But Obamacare was advertised as the way to lower prices.

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