Pipes' smoking something
Sally Pipes is a think-tank leader out on the west coast who appears to be a "free-market-as-cure-for-healthcare's-ills" advocate. Her latest effort appeared in USAToday earlier this week, wherein Ms Pipes reveals her belief that Massachusetts' health plan legislation is a thinly-veiled attempt to force the state into a single-payor solution.
While the entire editorial is, well, interesting, one of the most bizarre statements in her editorial is this -
"Individual health insurance is not always a good deal in Massachusetts, thanks to state-imposed community rating regulations that require companies to charge the sick and healthy the same rates."
Uh, that's kind of the point of insurance - everyone pools their funds to pay for the claims of the few with high expenses. If you don't do that, you have what is known as pay-as-you go. And that's not insurance. But for some reason Ms. Pipes thinks that's bad.
Wait, there's more.
Ms. Pipes then says that the Mass plan will saddle the state with the "same health plan design (that is) threatening General Motors Corp.'s viability and bankrupted its suppliers."
Oh jeez, that's about eight errors in less than one sentence.
Health plan design is not the main problem at GM - lousy cars, poor union negotiation tactics, aging plants, high gas prices, and bad management are GM's biggest problems. And health care. But GM's health care plans are WAY different from the new plan in MA. And cost-shifting from the uninsured, an aging population, too many retirees, inadequate cost controls, and lack of effective disease management are the biggest problems with GM's health care program.
Here's the silver lining - Ms. Pipes went on to say "The legislation will not control the true costs of these plans." That's absolutely true, and she is right on point, and I agree.
It's great to find common ground.