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I’ll Buy In

Sen. Olympia Snowe, the only Republican to support the Finance Committee’s health care bill, said Wednesday she could foresee a government-run plan that would “kick in” if private insurers failed to live up to expectations…

Two things to say now:

  1. The private insurers are doomed to fail and they will be set up to fail by the insane restrictions placed on them. Eliminate guaranteed issue, restrictions on interstate policies, community rating provisions and allow high deductible policies, and that alone would dramatically improve the “market” for health insurance. But these are not permitted under the Baucus plan (or are severly restricted).
  2. It is always, always, always, more government. What a shock. But I will sign up for this provision of the government also allows for this: “when government fails to live up to expectations, private options would be permitted to kick-in.” Right now, the Fed is not living up to the expectations of those who prefer more long-run price stability (even at the expense of output volatility) yet private monies are either outright restricted or extremely hamstrung. Right now, many are dissatisfied with government run public schools. Not only are private providers playing at a total competitive disadvantage (you try selling a product, even a good one, when your competitor is selling theirs for “free”), but the public is not willing to even move to a voucher model (where the statists are not in control) or a private model. Just look at the opposition to the Charter School movement. The discourse is totally one sided. Any lack of progress by the private sector dooms that area to government provision and intervention, yet the insane lack of progress within the government sector leads only to calls for more, larger and better government. Give me a break.

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