By Gene Ogorodov
In the beginning of May
Gov. Deval Patrick signed legislation that would bring Mass Care into
accordance with the Federal Government's Affordable Care Act. This
will fundamentally change Mass Care making insurance more expensive
for residents of Massachusetts and increasing the tax burden required
to fund the plan. With a vote and the stroke of a pen the Governor
and the General Court have set in motion the forces that will
transfer hundreds of thousands of recipients of subsidized health
care into the outstretched arms of insurance companies along with our
public coffers too.
The math that
demonstrates the fiscal irresponsibility of subsidizing insurance
companies rather than patients should be obvious to anyone that has
ever opened an economics book. The movement of money to commodity to
money (M—C—M') requires the second amount of money to be greater
than the first, viz. (M'>M). If M'≯M
there is no intrinsic motivation for the movement of goods or
services, which in this case is Health Care. The magic little number
(M'-M) which is the catalyst for transferring health care from health
care providers to patients via insurance companies is called profit.
