During the campaign to pass Federal Health Care the Obama administration was careful to avoid comparing to Massacheutts plan. Reading the Wall Street Journal today points to one of the reasons why.
PRICE CONTROLS.
According to the WSJ editorial page Mass Governor Deval Patrick (D) passed price controls on the health care industry citing industry greed over rate increases. Since that time nearly all of the health insurers stopped writing policies while the battle moves to the courts.
The editor points out that the four major carriers are non-profits and that three of the four had operating losses in 2009. The price freeze, a form of rationing, will mean an additional $100 million in losses. Thus the battle moved to the courts with a decision due on Monday.
The Patrick administration is demanding that the carriers resume writing policies at the prior levels. "Patrick has made the health insurance business so painful the government actually has to order private companies to sell their products (albeit at sub-market costs)." Doesn't that sound familiar? Well it should and it certainly won't be the last time that you hear that bully tactic.
The best part (or perhaps the worst part) of this situation is that Gov. Patrick's Attorney General and insurance regulators discovered that the losses and the needed rate increases are due to the increased costs of health care....NOT greed or the "supposed industry abuses" that Gov Patrick, Obama, and the dems are so fond of spouting.
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