Unicorns, Rainbows, and the ACA

People, the rubber biscuits are out on the table. The Chicago Tribune is incensed that ACA plans with the lowest monthly premiums have the highest deductibles.

Really, they seem amazed that the world isn't made out of unicorns and rainbows, and they go looking for a scalp to put on the wall,

Plans with the least expensive monthly premiums — highlighted by state and federal officials as proof the new law will keep costs low for consumers — have deductibles as high as $6,350 for individuals and $12,700 for families, the highest levels allowed under the law. 

 Insurers say the price and cost hikes result from new benefit mandates, additional taxes levied as part of the law and a requirement that they can no longer deny coverage to people with pre-existing medical conditions. 

 The vast majority of insurance plans for 2014 must include a list of 10 essential health benefits, some of which, like maternity care, weren't necessarily included in all health plans a year ago. The law also includes mandatory coverage of mental health and substance-abuse treatment, prescription drugs and rehabilitative care. All preventive care, including annual physicals and routine immunizations like flu shots, must be covered at no cost. 

 Further, insurers are required to take all applicants, regardless of whether they have pre-existing medical issues that may have locked them out of coverage in the past. And they're prohibited from charging their oldest, sickest members any more than three times as much as their youngest, healthiest members, causing premium prices to rise for many younger people. Costs associated with those mandates are passed along to all members of a health plan. 

Considering those factors, "the rates are actually quite reasonable," said Kelly Sullivan, a spokeswoman for the Illinois health insurance marketplace.

People, not even President Obama can defeat common sense and basic economics. If you increase demand (the mandate and subsidies) and expand the scope of the product (more required benefits), and disallow discrimination, then prices will rise. And if you squeeze the monthly payment down to make it look good, the deductible must rise.

I'm not saying any of the above actions are bad, I'm just saying it's nuts to think they'd be accompanied by lower prices.

I favor mandatory, high-deductible, insurance for everyone. Say a $10,000 deductible plan that covers major injury, illness, etc., just like we have for car insurance. I am less sure, but I think I'd even favor letting each state set the standard of what this bare bones coverage looks like inside its borders, just like we do for car insurance. You'd have to show proof of insurance to get a license, receive benefits, etc.

But instead of subsidizing the policies, I'd prefer to use the EITC or a basic income grant to deal with affordability issues.

Veteran's Day

Thanks to the vets who provided service--in all of messed up places we have sent people brave enough to try to serve the rest of us--thanks so much!

A special Vet's Day puzzle:  Who is this?

As he himself says, ironically, "Heroic Soldier of the Republic, June, 1967, right near the end of Basic Training at Ft. Lewis, Washington. Happy Veterans Day!"  And notice he doesn't really look any different now...

And, an old joke, and my own tribute to my father, who managed to live through November of 1945.

Why Expat Aid Workers like rebel militias

"When colleagues at the “Regional Conference on the Use of RCTs to Define and Shape Sustainable Mainstreaming of Successful Good Practice Related to Local Ownership and Crosscutting Holistic Gender Empowerment for Excluded Adolescent Girls based on Positive Deviance Methodology” think they are being all badass by casually dropping in news about their latest vacation in one dodgy place or another, as someone actually living there, it’s your EAW (expat aid worker) duty to trump them by reminding them that life in Militiaville is no cake walk, thus putting them in their place."

Full post is here. The entire blog is tremendous.

Caption Contest!

This is Joel Rosch, Sanford Institute faculty and closeted libertarian.

Caption contest!

With friends like these.....

Chilling headline this morning "Italy sending military instructors to Libya".

I can only hope they are going to help Gadhafi!!

Isn't it bad enough that France is helping the rebels?

This reminded me of Churchill's retort to Von Ribbentrop when Ribby told him Italy would be on Germany's side in the coming war:

"It's only fair that you have the Italians this time, after all we had them last time".