Palin on health care: Good intentions are not enough

From her latest Facebook posting:

Now that the Senate Finance Committee has approved its health care bill, it’s a good time to step back and take a look at the long term consequences should its provisions be enacted into law.
The bill prohibits insurance companies from refusing coverage to people with pre-existing conditions and from charging sick people higher premiums. [1] It attempts to offset the costs this will impose on insurance companies by requiring everyone to purchase coverage, which in theory would expand the pool of paying policy holders.
However, the maximum fine for those who refuse to purchase health insurance is $750. [2] Even factoring in government subsidies, the cost of purchasing a plan is much more than $750. The result: many people, especially the young and healthy, will simply not buy coverage, choosing to pay the fine instead. They’ll wait until they’re sick to buy health insurance, confident in the knowledge that insurance companies can’t deny them coverage. Such a scenario is a perfect storm for increasing the cost of health care and creating an unsustainable mandate program.
Those driving this plan no doubt have good intentions, but good intentions aren’t enough. There were good intentions behind the drive to increase home ownership for lower-income Americans, but forcing financial institutions to give loans to people who couldn’t afford them had terrible unintended consequences. We all felt those consequences during the financial collapse last year. Unintended consequences always result from top-down big government plans like the current health care proposals, and we can’t afford to ignore that fact again.

Now that the Senate Finance Committee has approved its health care bill, it’s a good time to step back and take a look at the long term consequences should its provisions be enacted into law.

The bill prohibits insurance companies from refusing coverage to people with pre-existing conditions and from charging sick people higher premiums. [1] It attempts to offset the costs this will impose on insurance companies by requiring everyone to purchase coverage, which in theory would expand the pool of paying policy holders.

However, the maximum fine for those who refuse to purchase health insurance is $750. [2] Even factoring in government subsidies, the cost of purchasing a plan is much more than $750. The result: many people, especially the young and healthy, will simply not buy coverage, choosing to pay the fine instead. They’ll wait until they’re sick to buy health insurance, confident in the knowledge that insurance companies can’t deny them coverage. Such a scenario is a perfect storm for increasing the cost of health care and creating an unsustainable mandate program.

Those driving this plan no doubt have good intentions, but good intentions aren’t enough. There were good intentions behind the drive to increase home ownership for lower-income Americans, but forcing financial institutions to give loans to people who couldn’t afford them had terrible unintended consequences. We all felt those consequences during the financial collapse last year. Unintended consequences always result from top-down big government plans like the current health care proposals, and we can’t afford to ignore that fact again.

Be sure to read the whole thing.

2 Responses to Palin on health care: Good intentions are not enough

  1. […] Palin on health care: Good intentions are not enough « Public Secrets pubsecrets.wordpress.com/2009/10/18/palin-on-health-care-good-intentions-are-not-enough – view page – cached Now that the Senate Finance Committee has approved its health care bill, it’s a good time to step back and take a look at the long term consequences should its provisions be enacted into law. — From the page […]

  2. archer52 says:

    Palin states the obvious. The question is where does she fit in the future of American politics. I think it was smart for her to step to one side and allow Obama to grab the spotlight. No longer can the media use her to deflect his silliness. No more Tina Fey and more Obama looking lost on SNL.

    But as some point she is going to have to do something somewhere. Right now make the cash, keep on the edges, bone up on the questions that Katie will ask. Read, learn and polish. She has three years.

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