Monday, February 13, 2012

With the Contraception Mandate, Price Consciousness Just Went Out the Window

As I had mentioned before, Planned Parenthood says that a woman on birth control spends between $15 and $50 a month. That, to me, says that women are being price conscious about what birth control method they choose. Logically, price is an issue because it affects the amount of co-pay or out-of-pocket expense that they must pay every month.

So, once you make all contraceptive methods free of co-pays, penalties, and deductibles under the Obama mandate, women will no longer be price constrained and they will naturally migrate to the more expensive methods that may have several advantages over their current, cheaper prescriptions. As a consequence, you can expect the overall expense for birth control in America to rise significantly in just a few years. For you and I, this means higher and higher insurance premiums to offset those higher expenditures.

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