Quote:
Originally Posted by Botnst
This is why Obamacare's private option will fail. Why pay for private healthcare when you can put your employees on the government's tab? It is the rational decision.
Because there are few negative feedback loops in private healthcare and none in government healthcare, healthcare costs rise faster than inflation -- there is no incentive to conserve. Healthcare costs will increase at a greater rate as employees are shifted to gov care because there is no incentive to conserve and very strong incentive to spend.
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Regulations have made everyone's private insurance costs go up, interestingly and I suspect not coincidentally, making that public option more palatable to those who would otherwise be opposed to it.
Why conserve? "Someone else" will pick up the tab.
If a company can save a boatload of money by dropping everyone's insurance coverage and sending them to public healthcare, they will. That's why it is, for all intents and purposes, a self-fulfilling prophecy. It's almost as if it was designed that way...