Health Insurance and Regulation

Faith-based organizations that share the costs of health care among their members are a tiny part of the health care coverage industry. They’re also not regulated by government.

[Faith-based] ministry officials say they aren’t offering insurance, don’t guarantee claims will be paid, and don’t need to be regulated.

Naturally, regulators object.

But now, some insurance commissioners are concerned that the ministries could put consumers at risk if bills aren’t paid.

This is the consumer’s choice to risk, though, not government’s authority to command not to. At least in a free society.

And more tellingly:

State regulators also say health ministries disrupt the insurance market because they tend to attract healthier consumers, siphoning them from commercial plans that can be left with sicker or older customers.

What these government regulators carefully omit to mention, though, is that the only “market” liable to disruption is their precious regulated “market.” In a free market economy, such competition is healthy, if disruptive, leading as it does to improving products and lowering costs.

Unfortunately, the number of faith-based health cost sharing entities that are exempt from Obamacare is carefully and deliberately circumscribed by Obamacare. That needs to change.

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