Spokane7
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February 14, 2012 in Opinion
Obama edict doesn’t add up
Leaving aside the blatant assault on religious liberty that the Obama administration’s contraceptive mandate represents (a number of commentators have ably elucidated the assault on free exercise), the edict ought to offend all sensible Americans for its sheer economic and moral fatuousness.
In this case, “moral” refers to moral hazard, i.e., unintentionally encouraging bad behavior. But first, consider the economic argument the administration has advanced for forcing insurance companies to offer free contraceptives and abortifacients to all women.
Health and Human Services Secretary Kathleen Sebelius explained that forcing insurance companies to supply a product for free would actually save the corporations money:
“… This is a no-cost benefit, that the National Business Council on Health, that our actuaries, a variety of people in group plans say having contraception as part of a group insurance plan actually lowers the overall cost, doesn’t increase it, because, on balance, preventive services around family planning, avoiding what may be unhealthy pregnancies, avoiding the health consequences of that actually is a cost reducer.”
Perhaps Sebelius should become a business consultant. Obviously, the insurance industry was missing a chance to save itself money! But wait, maybe most of the women who will use birth control are already using it and paying for it either out of pocket (a month’s worth of condoms is about $15, and generic pills can be had for $9 a month) or through a co-pay. Assuming that this group consists of the vast majority of potential contraceptive users, the insurance company will certainly lose money by providing for free what had previously been paid for.
As for those women who don’t now use birth control but will if contraceptives are provided for free, we can guess that their potential “savings” in the form of avoided pregnancies will be very small. Some percentage of these women will have unintended pregnancies anyway, because the reason they didn’t use contraceptives was not that they couldn’t afford them, but that they were irresponsible.
According to the Alan Guttmacher Institute, only 12 percent of women cited cost or availability as the reason for not using contraception. And even that figure is suspect. Considering 1) the price of condoms; 2) that Americans spend $110 billion on fast food every year; and 3) that no one who winds up unintentionally pregnant wants to admit that she was careless or stupid, the 12 percent figure deserves skepticism.
In any case, according to the Journal of the American Medical Association, 53 percent of unintended pregnancies are among women who do use birth control and report “contraceptive failure,” which often means failure to use them properly. So Sebelius’ fond prediction of insurance companies saving money on all those avoided pregnancies is unsound.
Additionally, when anything is cost free, demand will increase. So insurance companies will be shelling out more money for products that people may use – or may lie fallow in the medicine cabinet. To cover their added expenses, insurance companies will have to raise premiums – until the secretary of HHS decrees that they may not – in which case they will become unprofitable and go belly up. Presumably, the HHS secretary will then forbid that as well, becoming King Canute.
The anguished cries of leading Democrats notwithstanding (Barbara Boxer declared that Republicans are trying to “take away women’s rights … (and) their medicine”), pregnancy is not a disease. There are lots of real diseases, though, for which medicine probably does save money on net: anti-seizure drugs come to mind, insulin, blood pressure-reducing medicines and blood thinners. Come to think of it, why would a doctor prescribe any drug if not to ward off a serious illness or condition? When drugs reduce the incidence of serious diseases, it’s good for everyone, not least the patient himself. By the logic of the Obama administration, all drugs that reduce illnesses should be provided “free” by insurance companies. Before you knew it, insurance companies would be making so much money by providing free drugs that they’d be able to provide all other services for free as well. Poof! There is the solution to our health care crisis.
This is the governing philosophy of the Democratic Party – top-down mandates, “cramdowns” of renegotiated mortgages, creating an infinite cornucopia of newly discovered “rights” like the right to birth control, forcing individuals to purchase private products and forcing private companies to supply products free of charge. This is the world that Democrats build. It’s misconceived, uneconomic, unconstitutional and doomed to failure.
It isn’t just Obamacare that must be repealed, it’s Obamaism.
Mona Charen is a columnist for Creators Syndicate.
MAC firing begs explanation 
Arch_Druid on February 14 at 1:22 a.m.
Mona Charen should recall there is nothing more hypocritical than churches who want gvt to meddle in their affairs as long as it is in agreement with their agenda. Who do want gvt to meddle in the affairs of others when it can assure satisfaction for that agenda. But if it goes against religious interests, only then does gvt “meddle” with religious liberties.
I would say of these people, look in the mirror for the real source of your problems.
jdspokanewa on February 14 at 1:50 a.m.
I don’t feel an organization that sponsors and covers for kiddie diddlers can ever claim to have morals anyway. Since it is mostly the Catholic church who have been outraged, I really don’t care.
Scoutster on February 14 at 6:37 a.m.
So, Mona’s real concern is that this policy and Obamacare generally will bankrupt health insurers?
Sounds good to me!
richardch on February 14 at 6:56 a.m.
Liberalism is a disease, and they want all your money to cure it.
jdspokanewa on February 14 at 7:59 a.m.
Conservativism is a disease and they’ll stop at nothing to get everyone’s money in the top 1% of 1%
gmorton on February 14 at 9:05 a.m.
Arch_druid wrote,
“Mona Charen should recall there is nothing more hypocritical than churches who want gvt to meddle in their affairs as long as it is in agreement with their agenda.”
Well, you missed Mona’s point entirely, Arch. The column is not about churches or their doctrines; it is about the profound economic ignorance of the Obama administration and its asinine determination to deliver free lunches at someone else’s expense.
I wish I were the CEO of an insurance company. I’d love to tell Obama and his minions where they can stick their mandates, and haul him into court.
If he thinks every woman is “entitled” to “free” contraceptives, let him pay for it, out of his own pocket.
MrNatural on February 14 at 12:10 p.m.
Charen’s edicts never add up
It isn’t just Charen that must be repealed, it’s Charenism.
SMARTGUY on February 14 at 12:53 p.m.
I am sure the insurance companies will be fine, concidering the double digit increases in health coverage costs, they have enjoyed every year for decades.
stitch on February 14 at 3:42 p.m.
kma: Don’t let Mr Morton get under your skin..He thrives on it.. He’s the type who no doubt complains about single moms on assistance who have more kids than they can afford.. Give the ladies their free $9 a month contraceptives, and get rid of the “little blue pill”.. Our country and insurance companies will benefit in the end..
DickAdams on February 14 at 4:23 p.m.
I think it is high time to charge all Churches, real estate taxes. Why should I have to contribute to all the Churches in the city if I belong to one small Church where the basic public services are much less than several larger religions in Spokane that have so many Churches all over town? I`ll wager the basic services, such as police and fire protection, sewer costs, water co-lore with a few using sprinkling systems, because of all the land they own, etc, etc. My real estate taxes are high enough, which includes by law, some extra tax money to pay for all the Churches that receive free (to them) public services. Let the Churches pay there own freight and reduce every homeowner that does not enjoy tax exemptions? I`m not an attorney (thank gawd) but I would think most Churches violate the non-profit status with most of them involved in the political games. I wonder how I`d do, starting a petition drive to end the free lunch?
stitch on February 14 at 4:41 p.m.
Mr Adams: Keep an eye out over that left shoulder for a possible lightning strike.. I will keep one out over my right, cause I couldn’t agree with you more..
Mayocynic1 on February 14 at 7:41 p.m.
Looks like GMorton is among the few logical, well read people commenting on this issue. The moronic left is something to behold. Charen’s comments are fine. You don’t like them, fine.
Wait till one of the liberals commentors pipes up. It won’t make sense but you’ll like he/.him better…or Pitts/Milbank or one of those types…
Facts are stubborn things. Have all the BC/abortions possible. Obama will offer to fund them..with other people’s money. Cathlics won’t be forced to fund anything they don’t want to. BUT al those things are available. You’re urged to go buy them…on your own.
And yes…the insurance companies will continue to thrive being diversifed as they all are. Oh the companies owned by the insurance people….
gmorton on February 14 at 9:52 p.m.
kma wrote,
“Bet gmorton doesn’t care about everyone paying for the little blue pill to make all you men happy, do you gmorton.”
If the gummint mandated that coverage you’d lose that bet.
gmorton on February 14 at 9:53 p.m.
stitch wrote,
“He’s the type who no doubt complains about single moms on assistance who have more kids than they can afford.”
You bet. Have as many kids as you want. Just don’t expect someone else to pay to raise them.
gmorton on February 14 at 10:42 p.m.
I wonder how long it will be before offshore companies begin selling health insurance to Americans over the ‘Net – policies tailored to the actual needs of the individual customer, and ignoring all the free lunch mandates dictated by state and federal gummints.
That industry is a black market waiting to happen.
detroitdude on February 15 at 8:57 a.m.
And ironically, the companies that might be selling said insurance will probably be based in countries that already have a universal health care system for all their citizens. Time to step out of the dark ages America.
Benaround on February 15 at 1:27 p.m.
It cracks me up to hear the stonie-slackers want the Catholic
Church’s water shut off…and then they fill Sacred Hearts
Emergency Room Friday and Saturday night because they
got some bad Sherm or bad Shrumes.
Hope you’ve been making your monthly payments for this
medical care.
I am so sick of Druggie-Thugs killing children I actually
have the degree of hatred for you to wish you were getting
Obamacare and that Sacred Heart would close.