Tuesday, August 04, 2009

Prediction of What Will Happen if Public Option Passes

Unless the public option outlaws private health insurers I will be willing to bet that there will be a two tier system in place like this IBD article suggests.

Under ObamaCare, the rich would continue to get the care they want — whether here or abroad — by paying for it out of their own pockets. The rest of us would stand in line and wait for rationed care.

What I envision is that private insurers will consolidate and then turn into Medicare Advantage style value added companies. What I think will happen is that these plans will be priced mostly for the rich and cover anything that ObamaCare does not and will jump the line when it comes to certain care. They will probably reimburse doctors and hospitals at a higher rate then ObamaCare and thus entice them into the plan.

What this will create is a two tier system where the rich will pay for added care while the middle class and poor will be stuck with long wait times and the AmTrack level conditions created by ObamaCare.

These insurance companies are not dumb and they will be able to compete with the public plan but only for the highest premium payers. Taxpayers will instead be stuck paying for everyone elses health insurance including the rich. Such are the laws of unintended consequences.

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