How Bad The Government Is At Selling Insurance (Or Is It?)
Did you know there is actually a “public option” in the health care reform law? It’s true — it’s called the Pre-Existing Condition Insurance Plan (PCIP), and it’s designed to cover people who who have been unable to get insurance because of a pre-existing condition. To hear the stories about how big of a problem this is in America, you’d think a product like this would be a big hit. Except it’s been a big flop.
How big of a flop? Well, according to the Washington Post, they missed their sales targets by 98 percent:
Government economists had projected that people turned down by private insurers would flock to the new Pre-Existing Condition Insurance Plan, with 375,000 expected to sign up this year. But as of this week, a little more than 8,000 had enrolled, officials said.
According to the Post, it seems the government has figured out what they think the problem is: “sticker shock.” The price was too high. So they’re dropping the price by 20 percent and significantly enhancing the benefits. But can that really be the problem? Read more »
*This blog post was originally published at See First Blog*
