By Tom Quiner
A headline in the morning’s Des Moines Register’s Metro section read: “System for comparing health policies still stalled.”
As you recall, Obamacare calls for the establishment of “insurance Exchanges” to facilitate consumers’ ability to shop for the right product.
States can set up their own online Exchange. If they don’t do it, the Feds will come in and do it themselves.
Have you ever stopped to think about the proliferation of insurance “exchanges” in the car insurance industry?
Geico and Progressive advertise nightly on channel after channel how they help consumers shop for the right policy. Essentially, they offer an insurance Exchange. They do the shopping for you. You can buy their product … or their competitor’s.
The marketplace is much freer for consumers of car insurance products. Health insurance is rigidly controlled. Consumers can’t shop across state lines. They have to buy products with state-imposed mandates for coverage they may not want, need, or can afford.
The Iowa legislature is wrangling over a bill to establish an Exchange here in Iowa. They are at an impasse.
Wouldn’t it be so much easier and so much more effective to simply get the government out of the business of health insurance?
Just look to the car insurance industry where rates have remained competitive forever. The marketplace is much more efficient than Big Government.