The Disaster That Romneycare Is Becoming

Anyone who understands basic economics and how interventionist government leads to greater interventionist government knew this was going to happen. Market price signals are destroyed, supply and demand distortions start to occur and the regulative power centers are captured bu insiders. Costs go up, care goes down and the only solution the interventionists can think of are more interventions.WSJ has the details (my bold):

So Boston's latest adventure deserves particular scrutiny, since odds are its methods are coming soon to a hospital near you. After more than a year and a half of debate, last week the legislature passed a far-reaching "cost containment" bill that Democratic Governor Deval Patrick is about to sign. It is the inevitable postscript to the model that Mitt Romney introduced in 2006.

The claim then, as with the Affordable Care Act, was that health care would be less expensive if everyone had insurance. Soon Massachusetts Democrats leaked that their political strategy all along was to expand coverage only, because had RomneyCare seriously squeezed providers it never would have overcome industry opposition. "Bending the curve" on costs could be saved for another day, once a vast new government liability was locked in.

Sure enough, 79% of the newly insured are on public programs. Health costs—Medicaid, RomneyCare's subsidies, public-employee compensation—will consume some 54% of the state budget in 2012, up from about 24% in 2001. Over the same period state health spending in real terms has jumped by 59%, while education has fallen 15%, police and firemen by 11% and roads and bridges by 23%.

Meanwhile, Massachusetts spends more per capita on health care than any other state and therefore more than anywhere else in the industrialized world. Costs are 27% higher than the U.S. average, 15% higher when adjusted for the state's higher wages and its concentration of academic medical centers and specialists...

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