Ignagni to the Rescue

I watched this Frontline on the health care bill the other day. An excellent recap of the politicking of the last year - highly worth the view in my opinion.

I hadn't followed the behind-the-scenes politics of the debate, so, I'm embarrassed to admit, this was the first time I'd ever heard the name of Karen Ignagni. In spite of the liberal tint of the show, Ignagni, the HMOs' chief lobbyist, really emerges as the hero of the show, at least if you take a pro-insurance industry view. Her strategy: accede reform is necessary, and work hard toward two goals: (1) mandate that everyone has to buy health insurance; (2) no public option. And in spite of the fact that Obama had campaigned against both points, at the end of the day, Ignagni got her members exactly what they wanted.

Now, the part of me that is trained in Economics tells me that this is a classic example of an industry willingly accepting regulation, in the thought that regulation can benefit the industry. (Anyone remember the idea of regulatory capture?) Almost certainly this is going to result in a lot of deadweight loss. But, I tip my hat in admiration to a job very well done to Ignagni in terms of looking after her clients' interests.

On the other hand, it might be a good idea to have an economically rational plan for planning the health care system. Just an idea.