Monday, July 27, 2015

The cost of free healthcare

Ace provides the list of woes for states trying to have their own insurance exchanges.
My favorite.
2. Magical thinking.
Twelve states and the District of Columbia fully control their markets. Experts estimate about half face financial difficulties. Federal taxpayers invested nearly $5 billion in startup grants to the states, expecting that state markets would become self-sustaining. Most of the federal money has been spent, and states have to face the consequences.
Self-sustaining? How was "more services" and "fewer costs" ever going to be self-sustaining? It was magical thinking, as Vermont discovered:
In Vermont, a debate has been raging about whether to abandon the state exchange. Democratic Gov. Peter Shumlin originally wanted a single state-run system for all residents, along the lines of Canada. Shumlin backed off because it would have meant prohibitively high taxes.

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