Quantum Windbag
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- May 9, 2010
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The insurers don't have a problem with the ruling because they know they will be able to get the $3 billion it will cost by raising premiums.
NOt true, since birth control is revenue nuetral. When the Federal Government added it to their plans a few years back, it was.
The simple fact is that, when the federal government added it to their plans, not plan, people were able to opt in, or refuse, based on their personal choice. Federal employees generally have a higher standard of living that the public, tend to be educated, and are not a representative sample of the public. A better case study would be Hawaii, which is the only state to actually require all employers to provide contraceptive coverage on their insurance. The best that can be said about that is that it did not appear to cause an increase in costs.
http://hawaii.gov/dcca/ins/reports/2001_contraceptive_report.pdf
The LA times actually has an interesting OpEd about Obama and his dream that things are free.
Making everyone in a pool carry coverage whether they need it or not spreads the cost, saving money for those who really do need it and who'd choose to carry it if it were merely optional. But costs faced by the insurer are the same -- and when the care is provided with no out-of-pocket costs, the insurer's costs are likely to go up because more people will use it. Such is likely to be the case with contraception.
The administration's bet is that the cost of all those birth-control and morning-after pills, among other forms of contraception, will be more than offset by a reduction in other healthcare costs. A report by the Institutes of Medicine backs up the White House; it found that contraceptive use would save $19.3 billion a year -- far more than the estimated $5 billion annual cost of unintended pregnancies.
But whether this particular mandate produces that kind of result is something only time will tell. Although 28 states require insurers to cover contraception, the new federal rules are the first to require that contraceptives be available at no cost. The only certain result is that more women will get prescriptions filled for contraceptives. There will be a short-term cost to that, unquestionably; the administration's hope is that there will be long-term savings.
The White House wishes away the cost of contraception coverage - latimes.com