by Mario Rizzo
President Obama, always alert to the laws of economics, is complaining, in effect, that loading up private health insurance with even more mandates seems to be causing rises in premiums.
“President Obama, whose vilification of insurers helped push a landmark health care overhaul through Congress, plans to sternly warn industry executives at a White House meeting on Tuesday against imposing hefty rate increases in anticipation of tightening regulation under the new law, administration officials said Monday… Mr. Obama will appear in the East Room, where he will highlight new regulations to protect consumers from discriminatory insurance practices, end lifetime limits on coverage and ban unjustified revocations of coverage …Mr. Axelrod likened them to “essentially a patients’ bill of rights, the strongest in history.”
Now, although the federal government currently has little legal power to affect insurance rates (but who knows what is possible through “jaw boning”?), the states are increasing their regulatory activity in this area.
But the brilliance of ObamaCare will not be denied:
“The federal law, which will require that most Americans obtain insurance, includes a number of provisions intended to slow the growth of premiums. For instance, insurance companies soon will have to spend at least 80 percent of revenue from premiums on claims, as opposed to administration and profit.”
Take that, evil insurance companies!
Instead of an economic analysis of all this, I present a poem about King Canute:
A poem for kids, by Paul Perro
There once was an old king called King Canute,
And he was a very bossy old brute.
“Bring me my crown, and hurry!” he would say,
He told everyone what to do all day.
He said to the queen “I like being the king
And being in charge of everything.”
The queen looked at King Canute, and she laughed.
She said “Not everything, don’t be daft.
You couldn’t command the wind not to blow,
You couldn’t command a tree not to grow.
You’re not in charge of the birds or the bees,
The sun or the moon, the skies or the seas.
“Oh yes I am” said the King, getting cross
“I am, I’ll prove it; I’ll show you who’s boss!”
He called the servants together and then
He bellowed out an order to his men:
“Pick up my throne and take it to the beach,
There is a lesson that I want to teach.”
So they carried his throne down to the ocean
Followed by crowds, there was quite a commotion.
Canute sat on the throne facing the sea
And spoke to it with great authority.
“I am your king and I give this command –
Stay where you are, do not come on this sand”
But the sea didn’t listen to the king.
No-one can stop the tide from coming in.
As the waves kept advancing up the shore
The red-faced king tried to halt them once more.
“I am the King, you must do as I say,
I command you to go back, right away.”
But the waves still came, right up to his feet.
Canute sighed sadly, admitting defeat.
He faced the queen and said “You won the bet
And I have got my royal slippers wet.
I did my best, but no, I came up short.
I guess I’m not as powerful as I thought.”