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InsiderOnline Blog: November 2012

ObamaCare Has a Problem—Another One, Anyway

Yes, ObamaCare is an expensive entitlement, it isn’t paid for, it raises taxes, it creates byzantine incentives for companies to avoid hiring, it makes health insurance more expensive, it limits consumer choices, it will make services scarce for the truly vulnerable, and it will reduce medical innovation. But aside from all that, it’s fine, right? Nope:

By the end of this week, states must decide whether they will build a health-insurance exchange or leave the task to the federal government. The question is, with as many as 17 states expected to leave it to the feds, can the Obama administration handle the workload.

“These are systems that typically take two or three years to build,” says Kevin Walsh, managing director of insurance exchange services at Xerox. “The last time I looked at the calendar, that’s not what we’re working with.” [Washington Post, November 12]

As Sarah Kliff goes on to explain, the government faces numerous technological challenges in setting up the exchanges. If, as Leonard Read teaches us, even pencils are so complex that no one person can understand every step in the process of making one, then do really think a central authority can create an Expedia for health care?

Posted on 11/15/12 04:39 PM by Alex Adrianson

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