If this health plan is 'socialism,' we need more of it -- latimes.com

 

If this health plan is 'socialism,' we need more of it

As Obamacare's exchanges take shape in California, true, transparent, capitalistic competition will be seen among insurance firms, going toe to toe to win consumers.

David Lazarus

6:18 PM PDT, May 23, 2013

So this is what socialism looks like: Private companies competing for people's business in an open marketplace.

Californians got their first glimpse Thursday of what insurers plan to charge for coverage to be offered next year to about 5 million state residents who don't receive health insurance from employers.

In southern Los Angeles County, for example, Health Net is charging $242 a month for one of its plans. Blue Shield is charging $287 and Kaiser Permanente $325 for the same coverage.

For the first time, consumers are in a position to make an informed decision about health insurance. They can opt for the lowest-priced plan or they can factor in other considerations, such as personal convenience.

Insurers, meanwhile, are going toe to toe to win customers, keeping prices as low as possible and stepping up quality of service.

Amazingly, the sky hasn't fallen and the world as we know it hasn't come to an end.

Critics of Obamacare have long warned of the dire consequences of reforming the U.S. healthcare system. The federal Affordable Care Act constitutes a government takeover of healthcare, they have said. We might as well be living in Cuba.

In reality, what we're seeing is some much-needed sunlight being cast upon a market that for too long has operated largely in the shadows, denying consumers the information they need to make choices about medical treatment.

Private insurers will have to meet minimum standards for coverage when they begin open enrollment in October, allowing people to compare apples to apples for the first time when shopping for individual or family policies.

Insurers also will have to post their prices in a clear and easily accessible fashion, introducing a long-absent element of competition to the market.

"It will be a one-stop shop for selecting policies," said Devon Herrick, a healthcare economist at the National Center for Policy Analysis. "That should make things a lot easier for people."

If this health plan is 'socialism,' we need more of it -- latimes.com

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