Benjamin Rush Society
Single-Payer Health Care Systems, Multiple Health Care Disasters
By Sally Pipes
June 7, 2011
Democrats have recently seized on a novel way of reducing health care costs — threats.
The Obama Administration’s Department of Health and Human Services (HHS) recently announced that any insurance company that wants to increase premiums more than 10% will have to get approval from the government. Congress didn’t pass a law mandating this draconian policy — HHS Secretary Kathleen Sebelius simply decreed it.
Meanwhile, at the state level, Vermont Gov. Peter Shumlin just signed a bill that will create a public insurance option within his borders. Advocates hope that the end result will be a “single-payer” system, in which the state pays for the health care of its residents directly.
Both Sebelius and Shumlin declared that they were only trying to rein in health costs and limit wasteful spending on insurance company profits. But cost control by fiat — whether through rate regulation or a state-run health care system — will fail not only to restrain spending but also to improve Americans’ health.
June 1, 2011