Thursday, October 22, 2009

Health Care Reform Is Already A Failure

One really need look no further than the mandatory health insurance requirements of Massachusetts, where coverage is mandatory, to know what will happen when the same type legislation becomes federal law.
Massachusetts has the highest premiums of any state yet to secede from the union.

But, if one does require more evidence, then take as an example the current shortage of H1N1 flu vaccine.
How did this shortage occur?
The Department of Health and Human Services was responsible for this show in its entirety.
They set the price at $25 per.
They gave monopoly production rights to one company, Novartis.
They imposed other restrictions and regulations.

Missing from this formula? The Free Market.

Price was not allowed to fluctuate, and could therefore send no signal back to the producer.
Also, the controlled price meant that the only way to increase profit was to do the least efficient job without losing their government contract.
Competitors were not allowed to compete, so no shortage could be made up by a more efficient producer.

This is what will happen with all health care after it is socialized.

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