FixHealthCarePolicy

AEI: What Is the Value and Point of Private Health Plans?

While the focus of health reform has shifted to changing insurance provisions, American Enterprise Institute’s Clark Havighurst argues in his latest paper that this health reform “could have catastrophic cost consequences if consumers are given little opportunity or reason to economize.”

Instead, Havighurst urges policy makers to consider the following with health insurance reform:

– More attention needs to be paid to creating conditions under which competition can actually bring overall costs down. The health care bills being considered by Congress do not do this.

– The legislation should focus on getting incentives right and on clearing away barriers to innovation by private health plans.

Read the full report here.

Tags: competition, private health insurance, reform

Consumer Protections or Just More Government?

The President and fellow Democrats seem to be switching their message on health care – pushing for reforming health insurance rather than overhauling the entire health care system.

The White House is proposing heavy new regulations on private health insurance market under the guise of so—called “consumer protections.” Many of the policies suggested by the Administration and Congress would result in sweeping, complex and highly discretionary new federal regulation of the health care system.

Consumers need protections not just from insurers but from the government as well. Americans should beware.

Here are few studies that shed some light on the real impact these proposals would have on the marketplace as well as a Heritage Foundation piece on better ways to help consumers:

– Health Insurance Mandates in the States, 2009

– The Effect of State Community Rating Regulations on Premiums and Coverage in the Individual Health Insurance

– Individual Health Insurance 2006-2007: A Comprehensive Survey of Premiums, Availability, and Benefits

– Health Care Reform: Design Principles for a Patient-Centered, Consumer-Based Market

Tags: consumer protections, health insurance, reform, regulations