Health Care

Greenstein: ObamaCare Will ‘Cannibalize’ Private Insurance By 2014

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Expanding Medicaid rolls will harm market while burdening the public  

State Department of Health and Hospitals Secretary Bruce Greenstein predicted disaster for the state’s health care system Wednesday in front of the Rotary Club of Baton Rouge. Specifically, Greenstein argued that the health care law will cause “cannibalization” in the private health care market.
Greenstein accurately observes that the state’s already overburdened and unsustainable Medicaid program will receive 467,000 new beneficiaries starting in 2014- a 40 percent expansion. Of those patients, 167,000 currently are privately insured. This amounts to reducing consumers in the insurance market, which could quite possibly result in some providers leaving the market altogether, and will certainly raise costs.

The implications of this could be catastrophic. As it is currently, Medicaid patients have trouble receiving care because the Medicaid market is so crowded and compensation for doctors so low. This problem will be exacerbated when 467,000 new people are crammed into the market, making access even harder to come by.

Louisiana’s long term finances will also be threatened. Medicaid currently consumes roughly 17 percent of all state level spending, more than both higher education and transportation. With an estimated $7 billion price tag over the first ten years, the state will inevitably have to allocate money from other critical programs towards the swelling Medicaid population.

Greenstein instead wisely advocates letting states develop health care plans which fit their unique needs, rather than have the federal government shift long term costs and top-down regulations upon states which cannot afford them. “Government-financed health care does not have to be government-run,” he contends. The dangers of the Obama health law have been well documented, and one can only hope Greenstein’s comments are given the consideration they deserve.

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  • Anonymous

    This is a post from one of the louisana politicians here on face book! anyone else think maybe this guy jay guillot  might be against freedom of speech? here it is When we started this Facebook Page its intention was to keep supporters aware of my actions throughout the campaign. Unfortunately, many non-supporters have taken it upon themselves to post disruptive, incorrect, accusatory and flat out lies on our page. I have decided to turn off commenting on our page to avoid these inappropriate posts. My apologies to our supporters who have played by the rules and conducted themselves with composure on our page!

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  • http://www.cobrahealth.com Craig J. Casey

    #Rationing or denying treatment is not the answer. Isn’t the major reason for “reform” that insurance carriers deny claims?  Instead of private carriers doing it, allowing you to fix things via litigation, the government will do it. And be much harder to sue.  The claims of universal healthcare are an empty promise, without the 10,000 new doctors the magically appear to treat the millions in newly insured.  Where is the reform?  Expanding #Medicaid while doing nothing towards addressing care is a train wreak waiting to happen. http://www.cobrahealth.com/Obamacare-rationing.html