Obamacare Fixed the Health Care Market
Posted at 10:50 a.m. on Sept. 6, 2013
Paul Krugman explains why it is no surprise that President Obama’s health care reform law is pushing down health insurance premiums.
“Until now there has been sort of a market — but one that…is riddled with problems. It was very hard for individuals to figure out what they were buying… Price and quality comparisons were near-impossible. Under these conditions the magic of the marketplace couldn’t work — there really wasn’t a proper market.”
“With the ACA, however, insurers operate under clear ground rules, with clearly defined grades of plan and discrimination banned. The result, suddenly, is that we have real market competition.”
Related: Bill Clinton explains Obamacare.