Health-Insurance Caps to Fail

Once again collusion in Big Insurance raises an ugly head -
Trying to rein in health spending by limiting on insurance rates is like trying to hold down the lid on a pot of boiling water. Aside from the fact that insurance costs partly reflect ever-increasing medical costs over which insurers have little control, the legal justification for saying “no more” has never been clear. This has become apparent in Massachusetts, where an administrative court has ruled against a state-imposed insurance cap, and in California, where insurers have retreated temporarily from big rate hikes but are expected to return with new demands. Complete story
While cost control is often helpful, restraining trade and reducing income for health professionals is against sound economics.

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