From Chip Bok:
Health insurance rates are taking off under Obamacare, especially if you now carry a high deductible plan. Kathleen Sebelius agrees.
“Some of these folks have very high catastrophic plans that don’t pay for anything unless you get hit by a bus,” she said. “They’re really mortgage protection, not health insurance.”Megan McCardle at the Daily Beast thinks Sebelius is confused about what insurance is.
Sebelius’ response is apparently that catastrophic insurance isn’t really insurance at all–which is exactly backwards. Catastrophic coverage is “true insurance”. Coverage of routine, predictable services is not insurance at all; it’s a spectacularly inefficient prepayment plan.Dr. Krauthammer concurs.
“This is not insurance anymore. This is regulation, this is government dictated rates, like the electrical company…”