Mandates or Innovation?

As the presidential political campaigns heat up and more of the discussion centers on health care, we are going to be hearing a debate about mandating health insurance. Many politicians are promoting a health care system whereby the government would require individuals to purchase health insurance just as states currently require auto insurance coverage.

Greg Scandlen the president of Consumers for Health Care Choices, a national membership organization based in Hagerstown, Maryland, and an expert in Health savings Accounts (HSAs) has published an interesting article on the subject of mandates. The piece can be found on the Heartland Institute website and is entitled: Don’t Mandate: Innovate

Here is an excerpt:

Failed Mandates

We have already seen that innovations such as Health Savings Accounts (HSAs) will appeal to market segments that did not find value before. Approximately 40 percent of the people who have purchased HSAs in the non-group market were previously uninsured.

But HSAs are only one of many possible innovations in health care financing. Mandatory coverage short-circuits the vital process of innovation in a competitive market.

Further, mandatory coverage simply doesn’t work. Virtually every state currently mandates auto insurance coverage, and the number of uninsured motorists is very similar to the number of people without health insurance.

In 17 states, the rate of non-insurance for auto (which is mandatory) is higher than for health insurance, which is not mandated.

To read the whole article click here: Failed Mandates

 

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