More good stuff from Cochrane on health care

I recommend reading John Cochrane’s op-ed in today’s Wall Street Journal, What to do when Obamacare unravels. It’s a great follow-up to my health care reforms.

Here are a couple quotes from Cochrane’s piece that addresses some common concerns over non-government medicine.

What about the homeless guy who has a heart attack? Yes, there must be private and government-provided charity care for the very poor. What if people don’t get enough checkups? Send them vouchers. To solve these problems we do not need a federal takeover of health care and insurance for you, me, and every American.

And (emphasis mine)…

No other country has a free health market, you may object. The rest of the world is closer to single payer, and spends less.

Sure. We can have a single government-run airline too. We can ban FedEx and UPS, and have a single-payer post office. We can have government-run telephones and TV. Thirty years ago every other country had all of these, and worthies said that markets couldn’t work for travel, package delivery, the “natural monopoly” of telephones and TV. Until we tried it. That the rest of the world spends less just shows how dysfunctional our current system is, not how a free market would work.

“I promise a chicken in every pot (chicken not included)”

Tyler Cowen was ‘somewhat surprised‘ to find out that a higher percentage of the uninsured disapprove of Obamacare. I’m not sure whether his surprise was that the disapproval wasn’t higher or lower.

I wasn’t surprised that more disapprove.

As I wrote in my “Wait…What?” post in July of 2012, Obama won votes by promising to solve the problem of the uninsured. Those voters didn’t realize that his solution would be to penalize the uninsured for not buying insurance.

It’s like the old Doctor joke.

Patient: Doc, it hurts when I do this. Can you fix it?

Doc: Yes I can.

Patient: Really? Great! How?

Doc: Stop doing that.

In July 2013, I didn’t think many people had made that connection, yet. I predicted they might when they had to pay the fine. They haven’t paid the fine yet, but are discovering that Obama’s solution was the same as the Doc’s above. Stop not buying insurance.

I offered what I think is a better medical mandate in this post (edited slightly).

If you choose not to purchase insurance and you need medical care, you will be expected to pay for your medical care.

Mine isn’t that much different than Obama’s. But, it doesn’t require government intervention.

Update: James Taranto, at the Wall Street Journal, does a great job of making my first point:

In short, what ObamaCare means to the uninsured who were not uninsurable is higher prices for a product they already were disinclined to buy, along with a punitive tax on not buying it. That seems more like a mugging than a benefit.

The Affordable Care Act?

1. Why didn’t the government just use eHealthInsurance.com instead of trying to recreate it?

2. You can go to eHealthInsurance.com now and compare available plans for 2013 and 2014.

I did. I found out that for 2013 plans for my family start at $152 per month. That is comparable to the high deductible plan that I currently have. I also have 58 plans to choose from.

I also found that Obamacare-compliant plans for 2014 start at $515 per month and I have 25 plans to choose from.  And, yes, that is for a high deductible plan.

Say what?

Is the cost of my insurance about to increase by $4,300 a year because of the Affordable Care Act?

I encourage you to give this a try. Go to the working website, eHealthInsurance.com and get rate quotes for you for 2013 and 2014. You only need provide a zip code, ages of the plan participants and whether each has used tobacco. It takes about 30 seconds.

Solving the wrong problems

I work with two contractors who are evaluating health insurance options because of Obamacare. They have been happy with their high-deductible, low premium insurance.

They are now discovering that the deductibles on their plans are too high to qualify as Obamacare plans and their insurance companies will not continue to offer them. They figure that changing to a lower-deductible, Obamacare-approved plan will increase their monthly insurance costs by $600 – $800 per month.

It seems I remember someone saying something like, if you’re happy with your insurance plan you can keep it (though, I guess not literally).

Two good ones from Greg Mankiw

I like it when well-respected Harvard economist, Greg Mankiw, gets snippy. In this post on his blog, he snips at Kathleen Sebelius’ lack of understanding of the the term insurance.

Also, I recommend reading Mankiw’s Sunday NY Times opinion column about what fiscal sustainability means.

This would have been nice to know

I love experiments. The results can be instructive.

In the Wall Street Journal, Merill Matthews and Mark Litow wrote about some health care experiments conducted in various states.

We compared the average premiums in states that already have ObamaCare-like provisions in their laws and found that consumers in New Jersey, New York and Vermont already pay well over twice what citizens in many other states pay.

I’ve written about insurance in New York before. Here’s one instance.