Politicians understand they get positive traction by simply telling the public how much they care about solving ubiquitous burdens. Those who pay close attention know that saying and doing are very different things.

Three prominent politicians highlight the low art of feigning concern about a big problem before making it worse.

Republican President Richard Nixon promised to control the soaring price of fuel. He tried to fulfill the promise with price controls on petroleum. This disincentivized production and led to shortages, hours-long gas lines and increasing dependence on countries hostile to the United States. The failed policy defines "unintended consequence."

Democratic President Jimmy Carter, during his campaign and his first days in office, talked incessantly about his plan to lower the "Misery Index." The Misery Index, invented by economist Arthur Melvin "Art" Okun, measures inflation plus unemployment over the past 12 months.

Carter inherited a 12.66% misery index from President Gerald Ford in 1976. By the time Carter was done overtaxing and overregulating the market, he left Republican President Ronald Reagan with a Misery Index of 19.72%. That means nearly 20% of the public was certifiably miserable before Reagan cut taxes, reduced regulations and lowered the index to 9.72% by 1988.

Just as Nixon and Carter embarrassed themselves by exacerbating that which they promised to fix, Colorado's Democratic Gov. Jared Polis finds himself in the same dilemma. Polis promised before each of his two gubernatorial elections and throughout six years in office to reduce the cost of health insurance.

In 2021, Polis & company pulled a Nixon, attempting to place price controls on insurance. House bill 21-1232 demands each insurer to offer a state-standardized plan "at least five percent less than the premium rate for health benefit plans that the carrier offered in the 2021 calendar year, as adjusted for medical inflation..."

The "as adjusted for medical inflation" clause neuters this requirement, because rising health care costs and "medical inflation" are the same thing. Even if this requirement had teeth, it would be meaningless. No one goes into the insurance business for fun. So, it's a safe bet no insurance companies are willing to lose money to comply with state pricing mandates. Businesses, including nonprofits, cannot survive sustain losses.

In addition to price controls, Polis and other Democrats have forced political mandates on insurance companies. One forces all policies to contain full coverage of abortions, without co-pays or any other form of patient cost sharing. That leaves insurers trying to sell policies that put the cost of potential abortions on elders, singles, nuns, homosexuals, sterile couples and others who will never seek abortion coverage. Another mandate forces all policies to cover the full cost of fertility care.

Every politicized mandate raises the cost of insurance for Coloradans, despite a law that says to lower the price.

Insurance companies that cannot profit under a state's regulations simply shut down, pack up and leave. In doing so they reduce competition in the insurance market and drive "medical inflation" higher.

The first half of 2023 saw the exodus of Bright Health, Humana, Oscar Health and Friday Health Plans. That's a loss of more than 40% of the companies that offered insurance throughout Colorado last year. Less competition means less pressure to offer competitive prices, and therefore more health care inflation.

Given this overregulated and shrinking provider market, it is no surprise to learn Colorado's insurance companies recently presented the Colorado Division of Insurance with plans to increase premiums by 11% in 2024. So-called "state option plans," those designed by the state and forced on insurers, could go up by 8%. State option plans cover 12-14% of the market.

The Division of Insurance can try holding insurers to prices five percent below 2021 rates as "adjusted for health care inflation." For the past 12 months, the health care inflation rate in the United States has averaged 0.1%. In Colorado it has hovered between 7-8% and more in some regions as we have led the country in overall inflation. Holding insurance companies to anything like 2021 prices would put them out of business.

As Polis and the Legislature promise to make health care affordable, they force new costs on insurers that are passed directly to consumers. When the price goes too high, consumers take a pass and cause insurance companies to leave. We can't afford to lose more, so the Division of Insurance would harm Coloradans by denying the proposed price increase.

Everyone hears the politicians talk, but few see the big picture and politicians know it. That's why they talk a good game, then counter their words and stick consumers with the bill.

REPRINTED FROM THE COLORADO SPRINGS GAZETTE

Photo credit: Anastasiia Gudantova at Unsplash