Wednesday, December 28, 2011

Over Regulation Reduces Choice in Health Insurance: An Update

Earlier this year, the Pacific Research Institute published a study demonstrating one way that Obamacare will dramatically reduce Americans’ choice of health insurance. By encouraging states to pass laws giving politicians control of health plans’ premiums, Obamacare creates incentives for politicians to impose populist limits that threaten health plans’ solvency.

Furthermore, common measurements and tools used to determine whether health insurance is “competitive” are deeply flawed, leading even well-intentioned regulators astray as they seek to control the cost of health insurance. This month's Health Policy Prescription incorporates new data to test whether the conclusions of the earlier study persist. It finds that they do.

Read the updated article here.

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