Thursday, April 1, 2010

Health care price controls come to Massachusetts

Making good on Governor Deval Patrick's promise to reject health insurance rate hikes deemed excessive, the state Division of Insurance this morning turned down 235 of 274 increases proposed by Massachusetts health insurers for small businesses and individuals. ...

Three of the four largest nonprofit health insurance carriers posted operating losses in 2009 due to job cuts at businesses that buy health insurance, increased use of medical services by employees fearful of losing benefits, and the slumping value of investments.
--Robert Weisman, Boston Globe, on rescinding the laws of supply and demand by fiat. See previous posts on price controls here.

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