Massachusetts and Health Care Reform

We all know that Obama passed his health care reform (though I’m sure very few people actually understand what was just passed), but I want to discuss the similarities between what Obama signed and what Massachusetts has already implemented.

Both plans include a mandate for individuals to purchase insurance. Both levy fines on businesses if they don’t offer coverage. Both will be heavily regulated by the government. Both offer large tax-payer subsidies and Medicaid expansion. Both remove insurance companies’ rights to deny people with pre-existing conditions.

Shouldn’t we be able to look at MA to get an idea of what will happen when this plan is implemented nationally?

MA was spending 33% more than the national average before RomneyCare (the highest of any state), and in 2 years, it increased an additional 23% under RomneyCare (the national average being approximately 6.5% per year).

Very recently, insurers proposed 274 premium increases to help cover costs – 235 of which were rejected by MA regulators. Many private insurance companies have had to close shop, leaving big non-profit companies like Blue Cross and Harvard Pilgrim. The rates have gone up dramatically and without the ability to raise premiums, the non-profit companies will either have to close down or ration care.

Can anyone explain to me how Obama’s national plan won’t end up the same?