I have no doubt the industry will respond appropriately (that is, through pricing) to the prohibitions on annual or lifetime coverage limits.
The Republicans plan to allow Americans to buy insurance across state lines. At first blush, that might not seem like a bad idea, especially in states where a handful of companies dominates the marketplace. The drawback is that the fiercest competition for increased market share will be aimed at the youngest, healthiest, and lowest-risk prospects. That will drive up insurance prices for everyone else " especially those in the high-risk pool - because the insurance companies are not about to sacrifice revenues for market share.
What's more, the ability of people to buy insurance across state lines does nothing to address the many defects in the present system and product offerings. Offering the consumer 10 ways of getting screwed instead of three is not offering him anything he really values.
There is one other not-insubstantial detail: insurance is regulated by the states. The federal government may allow you to buy insurance across state lines, but state Insurance Departments will decide who is allowed to sell insurance in their states. There has been discussion of possibly overriding some state insurance regulations but we can expect states to push back hard against any such provisions.
The GOP promises to end junk lawsuits. This is a popular refrain for Republicans but it remains infested with problems for everyone except corporate America. Tort reform provisions will place roadblocks in the way of people filing malpractice claims; will place a $250,000 cap on awards for non-economic damages like physical or emotional pain and suffering; and will limit attorneys' contingency fees. The main effects of these ˜reforms' will be to deny deserving plaintiffs their days in court and deny just remedies to patients injured by medical malpractice, while limiting the accountability of health care companies and practitioners.
The effects of these four points of the GOP health plan would be to increase insurance company revenues and profits while doing nothing to provide better coverage to more Americans at lower cost. I know, I know: I'm shocked, too.
Republicans say their version of health care reform will require no tax increases. But some of their provisions will increase federal costs. Continuing their long-standing practice, Republicans will just spend the money anyway and add the cost to the already-burgeoning national debt. Specifically:
The Republicans want to encourage innovative state programs. They propose spending $50 billion over 10 years to provide incentives to states to create programs that reduce premiums and the number of uninsured. Of course, many states, especially Blue States, have already done this without federal incentives so the lion's share of the money probably will go to states that have dragged their feet (not to mention their knuckles) up until now and still have the greatest numbers of uninsured citizens " specifically, to Red States.
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