Posts tagged with: interstate

Our latest health care video short is up: “Why Consumer-Driven Healthcare Beats Socialized Healthcare.” And John Hinderaker of Powerline has an incisive analysis of the president’s speech last night to a joint session of Congress. The passage that stood out to me was this one about competition:

This seems to me to be the most critical moment in Obama’s speech:

My guiding principle is, and always has been, that consumers do better when there is choice and competition. Unfortunately, in 34 states, 75% of the insurance market is controlled by five or fewer companies. In Alabama, almost 90% is controlled by just one company. Without competition, the price of insurance goes up and the quality goes down.

In fact, Obama and Congressional Democrats have zero interest in increasing choice and competition. If they did, there is an easy solution. There are over 1,000 health insurance companies in the United States; why do you think it is that in Alabama, one company has 90 percent of the business? It is because there are major legal obstacles to insurance companies operating across state lines. State legislatures, and lots of the companies, like it this way. Competition is hard. But if Obama really wanted to expand “choice and competition” in health care, all he would have to do is go along with the Republican proposal to allow health insurance companies to sell on a national basis. Like, say, computer companies, beer companies, automobile companies, law firms, and pretty much everyone else.

The video and transcript of President Obama’s speech is available here. And more Acton analysis of healthcare policy is available here.