When the government mandates individuals to purchase health insurance from the private industry, where is the incentive for those oligopolies to control their costs. Can they do whatever they want knowing that the government has mandated their product?
In healthcare, there’s money in and money out. It takes an entire team to manage the money out. And every member of that team has an incentive to work independently of one another to maximize their profits. And none of them are accountable for the quality of their work.
Massachusetts has been a failure because they mandated insurance without mandating, at the same time, changing how healthcare is delivered. And therein lies the problem. The problem of spiraling healthcare costs is not who pays, it’s how care is delivered. If nobody is accountable for quality and every deliverer is disconnected with an incentive to do as much as they can, the process needs a reboot.
As we’ve witnessed in Massachusetts, mandating health insurance will quickly bankrupt the American people, if there are no mandates for changing the incentives of healthcare delivery.
Like I said yesterday, the federal government is saying to the insurance companies, “Here are 50 million new customers. Carry on.”