Tuesday, April 5, 2011

GOP went and did it...

Yep, they did. As Kash is reporting over at Angry Bear..The GOP did it

6.2 trillion in cuts....and none of it addresses health care spending. Not one shred. As I noted yesterday in my rebuke of Michael Cannon's column, this is not cost savings. This does not "save" money at all. This is cost shifting.

Also, what is even more baffling, as Kash notes, is that competition DOES NOT lower premiums in healthcare. I know, I know....this is sometimes hard for our hard core free market types to fathom, but the evidence, as I suggested in my note on Interstate Health Insurance sales, decreased leverage results in higher charges among providers and hospitals.

I will expanding more on this in the coming days. I am currently writing a post for Angry Bear that will be cross posted here that essentially will break down WHY free market mechanisms fail in healthcare. Stay tuned.

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