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Watchdog: Mandatory health insurance idea is flawed

November 20, 2008 by  

Mandatory health insurance may not empower the patientThe concept of obligating every American to purchase health insurance coverage is unsound and is likely to lead to abuse by the insurance industry, a consumer group has said.

According to Consumer Watchdog, the insurance industry’s agreement to support national healthcare reform is "self-serving" because it would profit from a situation in which everyone was required to purchase coverage.

Insurance companies would effectively be left on their own to decide on premium prices and details of coverage, removing power from the hands of the consumer, the group explains.

"That’s like GM agreeing to a bailout plan that requires every American to buy a new Suburban each year, as long as GM gets to set the price and decide whether or not to include the transmission," commented Consumer Watchdog’s Jerry Flanagan.

The findings of a Consumer Watchdog poll reveal that 63 percent of people are against mandatory health insurance when there is no limit set on charges.

Last year, Massachusetts became the first state to make health insurance mandatory for all residents in an attempt to make coverage more affordable.

However, according to a recent poll by the Boston Globe and the Blue Cross Blue Shield of Massachusetts Foundation, cost is still the number one health concern of those living in Massachusetts.
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