Donald Berwick is a Harvard professor. He has also been nominated by President Obama to run Medicare.
In an interview last year Dr. Berwick explained that the British National Health Service has, “developed very good and very disciplined, scientifically grounded, policy-connected models for the evaluation of medical treatments from which we ought to learn.” “The decision is not whether or not we will ration care—the decision is whether we will ration with our eyes open. And right now, we are doing it blindly.”
There are a couple of ways to ration health care. One is by doing so through political means, and the other is through free market competition and pricing. President Obama plans on doing it through the political route.
This brings me to my point. The Obama administration is attempting to pass a new health insurance law in addition to ObamaCare. The new law will essentially limit how much a health insurance company can charge, and limiting rate increases as well. A quick trip to Massachusetts today will reveal just how well this type of law works out. Prior to 2006 when Romneycare was passed into law, MA. had around 40 medical insurance companies competing against each other. Today there are two, both non-profits, and both suing the local government over it’s refusal to allow rate increases.
It will be Dr. Berwick’s job to find the money necessary to pay for ObamaCare using funds from the projected financial cuts in the Medicare Complete plans. The last thing the Obama administration needs at this time are huge premium increases that are coming. Having a law that limits these premium increases will give the administration political cover, while at the same time helping to sink the private health insurance market, the ultimate goal of Democrats in office.
Michael Higgins
602.405.8769
An Arizona health insurance broker