A hint that the Republicans might be wimping out again


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It’s stories like this that fill me with dispair: House Majority Leader-designate Eric Cantor (R-Virginia) says that Republicans will keep some provisions of Obama’s healthcare law intact. Key quote:

Provisions that Republicans will seek to retain include the barring of insurance companies from refusing coverage to patients with a pre-existing condition and allowing young people to stay on their parents’ insurance plans until age 26.

You would think the numerous demonstrations, the loud townhall protests, and finally, the election results themselves would have given Cantor a hint of what the public really wants: total and complete repeal of this stinker of a bill.

Cantor’s desire to keep the pre-existing condition clause will only make the entire insurance business unprofitable. When I lived in New York and the state legislative passed a similar bill, more than half of all insurance companies immediately abandoned the state, as they understood that no one had any reason to buy health insurance, until they actually got sick. And without the premiums from healthy people, the companies knew they would have no resources left to pay the expenses of those who were sick. (See my 1994 article on this subject for the magazine The Freeman.)

As for the clause allowing young people to stay on their parents’ plan until 26, all this will do is force insurance companies to drop all coverage for children, as this union did in New York.

Either way, what gives Eric Cantor and the Republicans (or the Democrats before them) the lordly wisdom to determine how this particular business (or any) should be run? Freedom demands that these business transactions should be left to the market, the insurance companies, and their customers, not to the whims of politicians.

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