Monday, November 07, 2011

Trade in Your Old Health Insurance

Cash for Clunkers. Marvelous program that did absolutely nothing other than blowing a few hundred billion dollars of taxpayer money.

So why mention an auto bailout on an insurance blog.

Stay with me.

As the folks at Red State point out, Cash 4 Clunkers didn't turn out so well.

what happened as a result of taking used cars off of the market. You see, there’s a considerable demand for almost worn-out cars: poor people, young people, and/or urban minorities can maintain them well enough to be cost effective – if the price is low enough. And what happens, class, when demand remains the same but the supply decreases?

That’s right: prices go up.

How does that relate to health care?

Let's just suppose for a moment that, at some point in the future, say 2014 for example, everyone has unfettered access to health care. All economic barriers have been artificially removed . . . as if by magic.

In other words, the cost of ACCESS to health care is dramatically lowered.

If demand increases, which it will, and there are a limited number of medical providers to fill that demand, do you think the price of health care might increase?

I do.

Thanks to Henry Stern for the tip!

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