In yet another demonstration of the bankruptcy of central planning, the Governor of Massachusetts has submitted a bill that would allow state authorities to forbid insurers from raising rates beyond the rate of “medical inflation”.

This illustrates the importance of keeping control of costs in the hands of patients and out of State control. As state-mandated insurance coverage (thanks Governor Romney) spreads, insurers are laden with sicker and less-motivated patients. Costs for insurers go up, and they have to raise rates to stay profitable.

You’ll grow weary if you try to read the whole article. It’s filled with ostensibly noble plans to help small businesses, who are being gouged by the evil insurers.

“One of the things those small businesses are saying is they can’t afford . . . new hires because they’re having to make choices on account of escalating premium increases,’’ Patrick said. “We’ve got to get at that.’’

The administration has to juggle a multitude of politically influential interests – small small business, large businesses, hospitals, insurers, etc. This is how central planning works – the input of knowledge comes from groups with the political savvy and influence to accomplish what they want. The government can’t know what the right insurance premium should be for a person or group purchaser of insurance – it’s manifestly impossible!

This is just more evidence of why we should all fight to keep the doctor-patient relationship sovereign on all fronts, especially economically.