An Unintended Consequence

The health coverage plan providers, companies like Humana, Aetna, Anthem, et al., are gaming the Medicare system to keep their Medicare bonuses coming in.  Surprise.

It seems that when Obamacare was passed, it included a system of paying bonuses from Medicare to those plan providers that got sufficiently high ratings on the quality of their plans.

But wait….

Medicare ranks privately managed plans…on a five-star quality scale and provides financial bonuses to providers of top-ranked plans. [A plan-holder’s] plan was set to be downgraded, which would have cost Humana its bonus. So the company merged plans covering [the plan-holder] and more than a million others into different contracts with higher scores. That preserved the bonuses.

That’s called cross-walking, and it’s entirely legal, if maybe a tad shady.

This is the sort of thing that happens, though, when Government intrudes itself too far into a marketplace.  Private enterprise is more agile than government bureaucracies can ever hope to be, and they can move much faster than any government bureaucracy can hope to do.

It’s also why black markets flourish in centrally planned economies.

The existence of this ability to cross-walk is a function of our Federal government’s intervention in what should be a free, competitive market.  The question wouldn’t even exist if we had an actual health insurance industry that operated free of Government fetters in an actual freely competitive market.

Biofuel Mandates

The Wall Street Journal had a piece titled Biofuel Mandates Are a Bad Idea Whose Time May Be Up that centered on the possibility that these might get watered down, or even eliminated, sometime “soon.”

The Renewable Fuel Standard, which forces oil refiners to mix corn-based fuel into gasoline, is one of history’s great policy boondoggles.

Well, NSS.  The only things it’s done of practical consequence have been to serve as a backdoor subsidy for farmers and to drive up the cost of corn, corn substitutes, and food that eats corn.  And to drive up the cost of gasoline and to create ethanol fuel-related automobile engine maintenance costs.

But that’s the problem with Government mandates in general when they’re intended to create a market for a particular product.

As a mandate, the time for this one on biofuels never was.

A Telling Remark

It also emphasizes the magnitude of the Republican failure with the party’s choice for Senate candidate in last December’s Alabama special election.

In a Wall Street Journal piece centered on the intra-party fighting the Senate Progressive-Democrats are having over a banking bill that would release smaller banks from Dodd-Frank’s onerous requirements, Senator Doug Jones (D, AL), who won that special election, let slip this in response to criticism from Senator Elizabeth Warren (D, MA) over his support for that banking bill:

I don’t really worry about things like that. I do what I think is best for me[.]

What’s best for Jones.  Not what’s best for his constituents and employers, the citizens of Alabama.

Hmm….

Federal Student Loans and State Regulators

The Trump administration has told States to stop regulating companies that service Federal student loans; that’s the Federal government’s job.  The States have demurred.

The whole thing could—and should—be made moot by the Federal government getting out of the student loan business altogether.  The Feds have no business here; it’s a private enterprise arena, and the States should be free to regulate, or not, to their hearts’ contents on intrastate student lending.  The Feds’ only role here should be to regulate Commerce…among the several States and not to compete in that commerce.

Discrimination and the Census Bureau

In a recent Wall Street Journal Letter to the Editor, a correspondent wrote regarding Edwin Meese III’s and Mike Gonzalez’ Trump Can Help Overcome Identity Politics

Another [excellent idea to eliminate identity politics] might be to not collect any ethnic, racial, or national descent information on US citizens at all.

Indeed. We’re all Americans; all other discriminants are deeply secondary to that.

Besides, as a Supreme Court Justice once said, the way to end discrimination is to stop discriminating. The Census’ plot to collect all of its identity politics data is just another attempt to discriminate.