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State plans miss the point
Sally Pipes, president of the San Francisco based Pacific Research Institute, warns that Gov. Schwarzenegger's plan for universal health care coverage in California will flounder on account of high costs and wideranging government restrictions on patient choice.
Schemes based on individual mandates will require new and extreme regulation of the private insurance market. Under California's plan, insurers won't be able to turn down anyone based on health status or age, a policy that causes premiums to skyrocket. In 1993, premiums jumped 500% when New Jersey passed a similar regulation.
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