Prescription for Disaster

The Coming Government Price Controls Under ObamaCare

Tuesday, May 15, 2012
Supporter of PPACA (ObamaCare) regularly point to Massachusetts as the model for the federal law. That being the case, watching the direction that Massachusetts takes in healthcare is a pretty good indication of the direction that healthcare may go on a national basis.

Americans nationwide need to take note of what is happening in Massachusetts. Avik Roy explains what has happened in Massachusetts. He writes: "Under Governor Deval Patrick, Massachusetts has tried a couple of methods for limiting the government’s exposure to rising health-care costs. First, Patrick forced insurers to stop raising premiums, which led to a predictable train wreck, as insurers started hemorrhaging cash. When a state appeals board overturned Patrick’s decree, he shifted gears, and began going after the prices charged by hospitals and doctors. On Friday, the Massachusetts House unveiled new legislation toward that end."

This is quiet clearly just another form of government price controls. Read more about what is in the new Massachusetts law here.

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The Identicalness of RomneyCare and ObamaCare

Wednesday, February 01, 2012
AHEC commends to articles to your reading list, both of which go into detail about the similarities between RomneyCare and ObamaCare.

Read the two articles here:  Article 1 (WSJ)  Article 2 (NewsMax).

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History Shows Congressional Cost Controls Won't Work (ObamaCare Included)

Monday, January 23, 2012
Michael Cannon at CATO writes an interesting historical summary of why cost controls don't work. If past is prologue, then ObamaCare is doomed to fail. Read more about what he has to say here.

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ObamaCare & Price Controls

Friday, October 28, 2011

The Obama Administration has begun what they call "rate reviews" to force insurers to "justify" their rate increases. As Sally Pipes notes, the method of the government would more appropriately be called "price controls." Government price controls inevitably fail to achieve their objective and, in fact, have the opposite effect on the market. Price controls create shortages (regardless of the product) as fewer sellers are willing to produce and/or make the goods to meet demand. Government has tried to impose price controls on housing (rent control) which skews the market and reduces incentives for more housing, in energy (think Carter in the 1970s) and America had gas lines and shortages. Health care is next if ObamaCare continues without repeal.

Be sure to follow AHEC on Twitter @TheAHEC and at Facebook.com/TheAHEC.


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