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MASSACHUSSETTS MAGIC
April 11, 2006
There really is a Hogwarts School of Witchcraft and Wizardry, and it's in Massachussetts. At least I hope so, as that's the only way the state's new "mandatory" health insurance plan will work. The InsureBlog summarizes key features, with added sarcasm:
The legislation calls for uninsured residents by July 1, 2007, to purchase new, low-cost health insurance plans or forfeit their personal state tax exemption -- worth about $150 -- in the first year.
Fail to purchase insurance, it costs you $150 per year. Yeah, I can see folks quaking in their boots over that one.
The legislation also would require employers with 11 or more workers to provide health care coverage or pay an annual fee of $295 per employee
Provide health insurance or pay $295 per year. That’s a tough decision too.
Econlog's Arnold Kling explains the big picture:
A single-payer system, with the state directly providing insurance to modest-income residents, would have been less costly and more transparent. Instead, the politicians' plan will force insurance companies to offer no-deductible health insurance to people on modest incomes, at premiums ranging from $1000 to $2000 per year. My guess is that the insurance companies will not be willing to pay for more than about $2000 per person per year in claims, and they will demand that the state provide reinsurance for the rest. Given average health care spending in Massachusetts of $6000, "the rest" could be a big number.
A very big number.
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Comments
Joe:
Thanx for the kind words, and the links (both here and at Chequer).
That's a terrific spell you've cast!
Posted by: hgstern | April 11, 2006 3:30 PM