ObamaCare is, of course, a neoliberal “market-based” “solution.” ObamaCare’s intellectual foundations were expressed most clearly in layperson’s language by none other than the greatest orator of our time, Obama, himself (2013):
If you don’t have health insurance, then starting on October 1st, private plans will actually compete for your business, and you’ll be able to comparison-shop online.There will be a marketplace online, just like you’d buy a flat-screen TV or plane tickets or anything else you’re doing online, and you’ll be able to buy an insurance package that fits your budget and is right for you.
Let’s leave aside the possibility that private plans are phishing for your business, by exploiting informational asymmetries, rather than “competing” for it. Obama gives an operational definition of a functioning market that assumes two things: (1) That health insurance, as a product, is like flat-screen TVs, and (2) as when buying flat-screen TVs, people will comparison shop for health insurance, and that will drive health insurers to compete to satisfy them. As it turns out, scholars have been studying both assumptions, and both assumptions are false. “The dog won’t eat the dog food,” as marketers say. This will be a short post; we’ve already seen that the first assumption is false — only 20%-ers who have their insurance purchased for them by an institution could be so foolish as to make it — and a new study shows that the second assumption is false, as well.
– Naked Capitalism