Monday, March 3, 2008

Indiana's candidate confused on health care economics

The myth that it is cheaper to buy health insurance in pools continues despite years of evidence to the contrary. This quote from a newspaper in Indiana talks about a candidate Jill Long Thompson's views on the topic:

"Transforming healthcare policy in Indiana by changing state law to encourage businesses and individuals to pool to buy health insurance, vastly reducing its costs for individuals and smaller sized businesses. This proposal would expand coverage for uninsured or underinsured Hoosiers. It would also positively impact business by reducing overall costs - not only by lowering prices by "bulk purchasing" health insurance, but also by reducing the number of uninsured in Indiana."

There is absolutlely no evidence that in Indiana or in any state that allowing individuals to buy group insurance increases the number of insured or lowers costs. In fact it is clear that group insurance is significantly more expensive that individual insurance in Indiana and in most other states. "Bulk purchasing" savings are only a political myth.

Virtually every cost saving initiative with national programs like or here at are based on individual health insurance initiatives, not group or association policies.

Another part of the same article talks about how the current governor's inaction on poor academic performance is unforgivable. We suggest that Jill Long Thompson's lack of knowledge on this basic health economic principle is equally unforgivable.

No comments: