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Recommend Stephen Kemble - Why Competition Among Health Plans Can't Help Us (Email)

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http://www.opednews.com/articles/Why-Competition-Among-Heal-by-Stephen-Kemble-111117-858.html

November 17, 2011

By Stephen Kemble

Insurance is a system for managing financial risk. When a high percentage of a population has known risk, as the case with health insurance when so many have pre-existing conditions and risk factors, then competition does not reward better plans, it rewards avoiding covering or paying for the sick, undermining the whole purpose of health insurance.

With or without with the Affordable Care Act (ACA), the total national cost of U.S. health care is rising unsustainably, with an increasingly unaffordable share pushed onto patients.1,2 CMS projections of total national health expenditures show a rise from 17.8% of gross domestic product in 2010 to 21% in 2019 under the ACA, compared to 20.8% in 2019 under prior law, both far higher than any other country.2 Problems with access to care are widespread and increasing. Doctors and hospitals are seeing reimbursement cut while administrative burdens escalate. Unwarranted regional variations in health spending point to large amounts of money wasted on unnecessary care.3


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