PrintMay 14, 2011
The Ever-Shifting Price of ObamaCare
One reason the price of a new Cadillac isn't higher is because not everyone wants a new Cadillac -- at least not if they themselves have to pay for it. But if everyone were in the market for a new Cadillac, one could be assured with metaphysical certitude that the price would "necessarily skyrocket."As it is with the Cadillac, so it is with everything else: Limited supply and soaring demand make for soaring prices.But defenders of ObamaCare tell us that the dynamic at play in the price of everything else, including Cadillacs, doesn't work for health insurance. They say that the price of health insurance will fall if everyone buys a policy. They tell us we need to get all the healthy, young people -- the ones least likely to make an insurance claim -- to buy health insurance, and only then will the price of policies come down. (This is analogous to forcing everyone to buy a new Cadillac when only a few can take possession of one.)It's the "pool theory" of pricing:...(Read Full Article)
