A big part of the dialogue driving the debate on health care reform is the premise that the uninsured are the main cause of higher health insurance costs for all Americans. While this undoubtedly plays a factor, it’s not the main reason for higher insurance premiums. Other factors are clearly at play and have more direct correlations, as this data indicates.
STATES WITH HIGHEST NUMBER OF UNINSURED
1. Texas
2. New Mexico
3. Mississippi
4. Louisiana
5. Nevada
6. Oklahoma
7. California
8. Wyoming
9. Florida
10. Georgia
STATES WITH HIGHEST AVG. PREMIUMS PER FAMILY POLICY
1. Massachusetts
2. New York
3. New Jersey
4. Rhode Island
5. Connecticut
6. Louisiana
7. North Carolina
8. New Hampshire
9. Maine
10. South Dakota
If the correlation between the number of uninsured and high premiums was a strong one, both lists should consist mostly of the same states. But as you can see, only Louisiana showed up on both lists. So what’s driving up health care costs in all these other states? Most likely, it’s lack of competition and government overregulation.
The more state regulators dictate what the health insurance companies can or can’t offer, the less choice that is available to the consumer and the more risk the insurance companies have to assume. Greater risk, of course, does have a direct correlation to higher health insurance premiums, as anyone in the insurance industry can tell you. If this is any indication, ObamaCare will raise premiums, not lower them, by eliminating consumer choice and forcing insurance companies to add riskier patients to their pool.
But just for kicks, let’s look at the data in reverse.
STATES WITH FEWEST UNINSURED
1. Massachusetts
2. Vermont
3. Minnesota
4. Hawaii
5. Delaware
6. Connecticut
7. Pennsylvania
8. New Jersey
9. New York
10. Rhode Island
Oddly enough, five of these states also show up in the top ten of highest premiums. And Pennsylvania almost makes it six (Pennsylvania has the eleventh most expensive insurance policies, just missing the top ten). Meanwhile, Massachusetts and Maine both passed health care reforms with public options similar to ObamaCare, but that hasn’t helped their residents save a dime.
Maybe it’s a regional thing or maybe it’s the propensity of these states to have highly regulated insurance markets, but it appears there’s a greater chance that states with low populations of uninsured will have higher premiums than those with large uninsured populations. This debunks Obama’s number one claim for why we must pass his radical health care reforms.
It seems we’d be better off saving one trillion dollars and letting 30 million people go uninsured rather than insuring them at our added expense – that includes higher premiums and higher taxes. And we haven’t even examined the strain on state budgets yet, in which case you’ll find Massachusetts completely overburdened by expenses as a result of their health care entitlement program.
By the way, the national average for annual premiums purchased is $5799 for family policies. Nine of the ten states on the most uninsured list were well below the national average. This seems to prove that the debate isn’t about making health care affordable. It’s about expanding government and intruding into the lives of private citizens, a power grab to control one-sixth of the American economy.
For a chart on the percentage of uninsured per state (including illegals), click here. For the full report on insurance premiums, please go here.
Neil Stevens
Steve Maley
Nice job, face
E Pluribus Unum (Diary) Wednesday, October 14th at 2:03PM EST (link)Peeking under the hood of ObamaCare – not polite.
Kill the Terrorists
Protect the Borders
Punch the Hippies h/t IMAO
excellent smack down of their faulty premises. nt
pilgrim (Diary) Wednesday, October 14th at 2:51PM EST (link)All the Blue States Are Screwed Up
Spartan4Life (Diary) Wednesday, October 14th at 3:41PM EST (link)These people keep voting these same idiots back in. Unbelievable.
The myth is that this is about healthcare at all....
JadedByPolitics (Diary) Wednesday, October 14th at 6:06PM EST (link)This “bill” is about TAXES and TAKING more of mine and your MONEY! This “bill” has the government taking MONEY from all of our healthcare plans that we already have and they will be TAKING money from every medical appliance you will need and they will be taking money from those who don’t need healthcare. This is about TAKING YOUR MONEY nothing more!
Unified Patriots – How-To:
Activists Taking Action
Finally, a place for reason. Thank God.
facetwitch (Diary) Wednesday, October 14th at 6:24PM EST (link)This is my first diary. I hope to write at least one a week time permitting. I am certainly impressed with the level of discussion here, especially after having gotten used to the vitriol of the Left over at Huff Po. Thanks for welcoming me with such kind words.
JadedbyPolitics, you have nailed it. I would argue that it’s about TAKING CONTROL though, not necessarily money. Money is just a means to CONTROL.
BTW, these entitlement programs are next to impossible to stop once they get implemented. There was a great article in the WSJ today about Corzine running ridiculous ads saying his Republican opponent, Chris Christie, wanted to stop insurance companies from paying for mammograms. That’s the kind of deceitful campaign these Statists run after they force premiums up by mandating all insurance companies cover certain procedures. The minute someone tries to reform them and make more choices available, to put decisions back in the people’s hands, they get attacked by viscous smears from the Left. If FauxbamaCare passes (in some form or another) expect a lot more of these dishonorable tactics.
Great diary facetwitch...
JadedByPolitics (Diary) Wednesday, October 14th at 6:45PM EST (link)try the reply to button it works fabulously
Unified Patriots – How-To:
Activists Taking Action
If the average
fbks (Diary) Wednesday, October 14th at 11:28PM EST (link)national cost for each family (3 each family) is $5,800 and the you allow the number of citizens who are uninsured at 30 million (divide by 3) = 10 million families x $5,800 = 58 billion. x 10 years = $580 billion.
The fuzzy math released by the CBO which understated costs and savings, allows for reducing medicare benefits paid and counts new taxes for ten years but expenses approximately 20 million new insureds for only seven years assumes a cost of 830 billion.
How can the government claim to be offering an alternative that “keeps the insurance companies honest” and be competitive yet their own estimates indicate it will cost taxpayers twice as much to insure 20 million through this scheme than just purchasing private coverage for 30 million?
A combination of tort reform and medicare fraud prevention would cost the taxpayer $0, would reduce medicare benefits $0 and generate sufficient funds to simply pay the premiums for 30 million.
I do not support government being involved in health insurance or regulating health care services, but the rough numbers illustrate the volume of waste being added.
Great diary.
Loren Heal (Diary) Thursday, October 15th at 12:19AM EST (link)Normally when people start talking about correlation and causation I roll my eyes, because correlation doesn’t imply causation.
But you turned that around, so that the logic works: causation implies correlation, so that without correlation there can have been no causation.
Good work.
–
Join the Concord Project, and follow @lheal, if you dare.
Not bad
aesthete (Diary) Friday, October 16th at 12:06AM EST (link)I would note a couple of points, though:
1) most of the states listed under “highest # of uninsured” are Southern border states, or have large hispanic/illegal populations (Georgia, Texas, N Mexico, California, Louisiana, Nevada, Florida, Wyoming and Oklahoma all fall under this category). It would be interesting to adjust for illegals, and then to see how the states compare.
2) As you implied, many of the states with low #s of uninsured encourage or mandate insurance through regulation, so it can’t really be argued that high premiums encourage more uninsured.
In any case, since you weren’t attempting to make a case against healthcare, your OP makes for a fantastic rebuttal to the absurd leftist claims about healthcare. Recoed! (Hopefully, my post sounded OK and not hostile; I’m extremely tired, and I’ve been told that sometimes my writing comes of as confrontational when I’m exhausted.)
The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton
Not confrontational at all :)
facetwitch (Diary) Saturday, October 17th at 5:38PM EST (link)Thanks for the notes and recommending!!! It would definitely be helpful if I had a breakdown of the numbers adjusted for illegals, although I doubt the top ten would change much. As a Texan, I can tell you most of the people I know who are single and under 40 don’t carry health insurance unless they get it through work. Which is dumb, because catastrophic coverage is fairly inexpensive.
As per your second point, I believe it can be argued that high premiums discourage some families from purchasing health insurance, but what percentage and at what expense is hard to say. I don’t address it here, but certainly there is a threshold where a family chooses to hang on to their hard earned money and take their chances, rather than enter a death spiral of increasing premiums. Government subsidies and hefty fines mask the number of people who would otherwise be uninsured in states like Massachusetts, as they would with FauxbamaCare, at the same time driving up costs. And if costs go up, how soon before the state is subsidizing and rationing health care for all but the wealthiest?
Thanks, facetwitch
briann (Diary) Friday, October 16th at 11:03AM EST (link)Nice diary. Once again, increased demand push prices up.
I am continually shocked at how many supposedly bright people (especially politicians) don’t understand high school economics. Increasing demand pushes prices up, increasing supply pushes prices down. Government mandates can change the supply or the demand, but don’t change the economic reality.
Adding 47M (or 30M) people to the health insurance market will increase prices.
-Bri
I'm sorry, this data is worthless without further consideration
mbauer (Diary) Sunday, October 18th at 7:34PM EST (link)You have indeed shown that the states with the highest cost of living have the highest insurance premiums. The states with the largest rural poor population have the most uninsured. Also, the states with the largest illegal immigrant population make the highest uninsured list. Does your source count illegals?
I have not gone through your links, and perhaps they answer my questions, and if so mea culpa.
If properly normalized, this data would be worth while, but without that, its just one more example of using data out of context.
And there are other important things to take away.
-If you normalized cost of living, or average income across the country and Massachusetts still had the highest premiums, that’d be a HUGE blow, seeing as they have they have the nearest thing to what the government is trying to do.
Also, remember, there is no reason to bash health insurance reform as a whole. There are several key areas that we should focus on reforming. A while back Moe listed them, with Tort reform near the top of the list, and interstate competition following closely.
I am whole heartedly against federal government programs, including the “public option” for health insurance. But it hurts my soul when we needlessly use bad statistics to make a point. We DO NOT need them to win this debate.
Missed the comments
mbauer (Diary) Sunday, October 18th at 7:36PM EST (link)Sorry for restating the illegals question