As predicted, the “universal” health plan introduced by the Commonwealth of Massachusetts is more expensive than the politicians thought it would be. The tab could run $619mm for the state’s fiscal year, $147mm or 20% over-budget – according to this health blog post on the Wall Street Journal’s website.
What’s the answer to this problem? Well, when a business’ expenses are over-budget (20% is laughable…but not unusual with inefficiently planned for and poorly conceived government welfare programs), you have two choices, increase revenues or decrease expenses. And because policymakers wouldn’t dare charge citizens higher premiums so soon after introducing the program that got them elected, they’ve predictably opted to decrease expenses.
How? You guessed it, they are cutting payments to health care provides such as doctors and hospitals. You can bet the program, comprised of forced medical insurance, will see continued budgetary problems. You simply cannot provide 100% coverage, 100% access, and any reasonable level of health care for cheaper than programs that don’t make those promises.
If the program continues in its current form, I predict there will be a shortage of primary care physicians in Massachusetts. Everyone loses… except for the political careers of people who couldn’t care less about public health.
Laissez-faire Healthcare Blog 