Consumer Group Finds Use of Outdated Data and Other Major Flaws in Economist's Defense of Mandatory Purchase of Private Health... ( SANTA MONICA Calif. Feb. 12 -- A...)

HOME >> MEDICINE >> NEWS

Consumer Group Finds Use of Outdated Data and Other Major Flaws in Economist's Defense of Mandatory Purchase of Private Health Insurance

Date:2/12/2008

SANTA MONICA, Calif., Feb. 12 /PRNewswire-USNewswire/ -- A consumer group today released a critique of a report by MIT economist Jonathan Gruber supporting mandatory purchase of private insurance which used 30-year-old data to show that most Americans are "over-insured" and to defend the affordability of the plan.

Download the Foundation for Taxpayer and Consumer Rights' (FTCR) critique of Gruber's report: http://www.consumerwatchdog.org/resources/MandatoryInsuranceCritique.pdf

FTCR identified major flaws in Gruber's report, including that it:

-- Relies on 30-year old data to conclude that most people are "over-insured," utilizing too much health care unless they face punitive co-pays and deductibles. However, this study is both out-of-date and flawed by the unrepresentatively low out-of-pocket costs of the plans studied. Today, yearly premiums for a family of four top $12,000 annually, and over the past six years, the amount families pay out-of-pocket each year for their share of premiums has increased by about $1,500. Nearly one out of four Americans under the age of 65 -- 61.6 million people -- is in a family that will spend more than 10% of its pre-tax income on health care costs in 2008.

-- Relies on an out-of-date health insurance profit and overhead figure of 12% and avoids discussing the explosion in insurer profitability since 2000. Some experts say that up to 50% of overall health spending now goes to clinical and insurer administrative waste, inflated prices, and fraud by doctors and hospitals.

-- Relies on unsubstantiated notions, originated by insurers themselves, that requiring Americans to buy unaffordable and poor quality health insurance policies is a necessary component of reform.

-- Assumes that the insurance market is highly competitive, ignoring extreme market consolidation that will inevitab
'/>"/>

0

GOOD

Page: 1 2
Related medicine news :

1. Transitions Optical Promotes Healthy Sight Through a Nationwide Integrated Advertising Campaign and the Launch of an Enhanced Consumer Web Site
2. Review of online breast cancer information encourages healthy skepticism for consumers
3. Legal Employer Provides Companies with Competitive Edge by Assuring Consumers that Workers are Legally Documented
4. Integrated Laser Therapies Launches, Offers Low-power, Therapeutic Laser Devices and Training for Therapists and Consumers
5. Consumer Reports Poll: Americans Demand Health Reform But Are Unsure About How to Achieve it
6. Smart Home Cleaning: New Web Site Educates Consumers on Looking Clean Versus Being Clean
7. Linda Ellerbee to Present Keynote at URACs Best Practices in Consumer Empowerment and Protection Awards Program
8. Concentric Launches New Consumer Division, Names Mike Devlin EVP, Managing Director
9. Consumer Driven Healthcare Continues To Make Its Mark on Indianapolis Market
10. Blue Cross Blue Shield of Michigan Says Guaranteed Access Provisions of Insurance Reform Bills Protect Michigan Consumers Twice-Over
11. American Legacy Foundation Comments on New York State Department of Health Petition to the FDA to Expand Consumer Access to Over the Counter Nicotine Medications

Post Your Comments:

Consumer Group Finds Use of Outdated Data and Other Major Flaws in Economist's Defense of Mandatory Purchase of Private Health...( SANTA MONICA Calif. Feb. 12 -- A...),Health