This is an Expected Consequence of Obamacare

I have repeatedly stated that the first problem with healthcare is not the price of healthcare, not the cost of healthcare.

Absent fiat regulation, it is more important to initiate price competition both in insurance and in medical services, which means that the pricing will be clear, and high price insurance will be eschewed by consumers, and high price medical services will be eschewed by the insurance companies.

Therefore, it comes of no surprise that insurance companies are cutting the big name providers who charge a premium:

Americans who are buying insurance plans over online exchanges, under what is known as Obamacare, will have limited access to some of the nation’s leading hospitals, including two world-renowned cancer centres.

Amid a drive by insurers to limit costs, the majority of insurance plans being sold on the new healthcare exchanges in New York, Texas, and California, for example, will not offer patients’ access to Memorial Sloan Kettering in Manhattan or MD Anderson Cancer Center in Houston, two top cancer centres, or Cedars-Sinai in Los Angeles, one of the top research and teaching hospitals in the country.

This was not just foreseeable, it was the inevitable consequence of the Heritage Foundation designed plan.

In the long run, this is a good thing, because the consolidation of hospitals over the past few years has not been about efficiencies, but rather about the accumulation of pricing power.

You may not like that Sloan Kettering is not in your network, but in the long run, some for of price controls are essential to fixing our broken healthcare system,