Archive for February, 2013

The Price of Health Insurance and Obamacare

February 19, 2013 Leave a comment

The Washington Post recently published an article describing the effects of Obamacare on the price of health insurance (the article may be found here).  The article points out those features of Obamacare that will drive up the price of health insurance.  For example, guaranteed issue, the feature that means an insurance company cannot turn down anyone for a policy, will put insurance companies at risk if people without insurance buy policies once they know they need operations. So insurance companies will raise prices to protect themselves against these bankruptcy risks. The article lists other properties of Obamacare that will raise the price of insurance for healthy young people, many of which were described, quite some time ago, in this blog (see, for example, Obamacare and Health Care Costs and Obamacare and Guaranteed Issue). Sorry for tooting my own horn!

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A blog by John B. Taylor

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One economist's views on economic policy.

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