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Arguing Obamacare In My Sleep

Jun 04, 13 Arguing Obamacare In My Sleep

Invitations to the After Party

I had a dream last night that I was trying to explain why Obamacare is bad to a former pastor. The assumption on their part was that it’s designed to fill a void, and therefore it’s good. Filling a void alone, however, is not necessarily a good thing. Economically speaking, there is a natural balance of supply and demand. In this case, we have demand for a service that lacks the purchasing power to acquire the supply. That isn’t to say that supply isn’t available, just that market conditions are such that supply is cost prohibitive and thus unattainable.

Rather than addressing the price and wage controls that make supply cost prohibitive, such as HMO’s and market regulation, Obamacare permits the 3rd party monopoly on payment for services. It attempts to use force to allow the prices to remain fixed, while forcing more customers into becoming ‘healthcare shoppers’. It is failing to address the real issue, which is why prices are so high. It is attempting to turn the industry into Costco, where you buy your healthcare in bulk, instead of allowing competition to determine price. In other sectors when price-fixing occurs at the industry level, it violates the Anti-Trust Act. When government mandates it, it’s considered the overall good.

When you have a need for a plumber, you pick up the phonebook or your stack of local coupons. At that time you are inundated with advertisements for the products and services you have a need for.  You choose the option that best meets your needs, and you call them.  If price is your concern, you go with who gives you the best price.  If quality is your concern, you get referrals and go with who offers the best quality of service, even if it means paying more.  It is the same with all unregulated industries.  The airline industry saw a marked decrease in airfare costs following deregulation, which required airlines to compete with each other instead of having the luxury of government mandated fixed prices.  What Obamacare is doing, is further empowering the 3rd party payer monopoly to continue.  It is mandating new customers to join the customer pool, while increasing prices to existing customers.  It is not only failing to address why prices are so high, it is bolstering the source of the high cost and making healthcare increasingly cost prohibitive.

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