Much to my surprise, the American Association of Retired Persons has come out against legislation that I am supporting that would establish insurance risk pools in Maine. I can only assume Consumers for Affordable Health Care is at it again with their scare tactics.
Insurance risk pools exist in 31 states where they are helping to reduce the costs of insurance for all consumers including seniors. We do not have one in Maine because groups like Consumers for Affordable Health Care fight free-market based solutions at every turn. And when they can’t win on the merits, they tell seniors that their rates are going to skyrocket. Nonsense.
Maine’s health insurance industry is in a death spiral because the Legislature has put too many restrictions in place for the free market to work. As a result, healthy individuals who should be paying modest premiums are faced with two choices. They can either pay sky-high premiums for health insurance they probably will not use or leave the system completely.
Because so many young and healthy people opt for the latter, there are fewer and fewer people paying premiums to support the benefits for those who are in need of care.
Risk pools help expand participation in the health care system by keeping costs down for those who can choose to go without coverage. In the end there are more premium dollars in the system and everyone seniors included get the coverage they need for less.
Rep. Lois Snowe-Mello, Poland
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