Saturday, April 10, 2010
James Capretta has an interesting column on the failure of Mitt Romney's health care scheme in Massachusetts (which is nearly identical to Obama's scheme, except that Obama's is on a federal level). The subsidies it provides has -surprise, surprise- led to increased demand, which in turn has caused health care costs to increase even faster. This has created big fiscal problems for the Massachusetts state government, which is now responding by price controls on insurers to limit cost increases. The insurers in turn respond by restricting access. Meaning that Massachusetts is rapidly moving towards the kind of "cost control by government rationing of health care" that the health care systems in Europe and Canada have used. And since Obamacare will create similar problems once it is implemented on a federal level, so will the rest of the United States later.