Why Insurance Is So Expensive
It would be nice if every person had health insurance that covered every possible medical expense. Unfortunately, that sort of insurance would cost an astronomical amount of money. That is a simple fact in a world with scarce resources. However, that fact does not deter politicians from trying to force everyone into insurance plans that cover an ever-wider array of treatments and thus cost ever-greater amounts of money. The most recent effort for expanded coverage focuses on treatments for autism. From the Political Fix:
About one in 100 children are diagnosed with some form of autism, studies have shown.
The bills’ sponsors, Sen. Scott Rupp, R-Wentzville, and Rep. Dwight Scharnhorst, R-St. Louis County, want to make sure families can get coverage for expensive therapy known as Applied Behavioral Analysis, which often involves 20 to 40 hours a week of one-on-one sessions with therapists.
As filed, the bills would require insurance policies to cover $72,000 a year in treatment for children and adults up to age 21.
There is absolutely nothing wrong with buying insurance to cover treatments for autism, but not everyone needs or wants this insurance, so they should not have to pay for it. For example, as I read the article, a family of four would be forced to continue paying for this insurance even if neither of their children showed any signs of autism. Not everyone requires the same kind of medical coverage, but by mandating that everyone buy similar high-end insurance policies, the only thing we ensure is higher prices for everyone.
I believe the information in the linked article from the Political Fix may be a little misleading. I do not believe one in 100 children with “some form of autism” equals one in 100 children requiring 20-40 hours per week of therapy. There are many, many different needs a child may have when they fall somewhere on the autistic spectrum (1 in 100). It is very difficult to get a medical diagnosis unless a child has more severe symptoms of autism (a much smaller occurance rate). With no medical diagnosis, there is no insurance coverage. Most parents of more mildly “austic spectrum” children will likely still need to pay hundreds of dollars out of their own pockets each month to help their children, even if the bills pass.
So I think the one in 100 represented is overblown and therefore the overall therapy/treatment costs are misrepresented.
Comment by DaveG — January 20, 2010 @ 11:23 a.m.