If one lone Republican supporting your socialist bill indicates “bipartisan” support, then Max Baucus and the Democrats got that yesterday as the first hurdle to a government takeover of our insurance industry was cleared.
Here’s Liberal in Republican clothing Olympia Snowe ruminating on whether a “public option” might be the thing to fix “what’s wrong” with accessibility to health care in this country:
“I think the government would have a disproportionate advantage” in the event of a government-run option, the Maine Republican said in a nationally broadcast interview. Snowe said “at the same time, I want to make sure the insurance industry performs, and that’s why we eliminate many egregious practices.“
Egregious practices, you say? Sounds serious. You’d think the AP would get right to telling us what those practices might be and why they’re so egregious. The AP of course doesn’t do that. We have to wait until paragraph 17 to find out what “egregious practices” this new bill is aiming to fix, which to me is strange. Burying them so deep in the story leads me to believe that they’re really afterthoughts. That the reason to support this bill that the AP really wants you to take away has nothing to do with the egregious practices at all, but has everything to do (as did Obama’s Nobel Peace Prize ‘victory’ last week) with…rooting for Obama (and maybe also re-making America into a socialist trough). See for yourself. Tell me if these “egregious practices” are really all that bad:
The measures would bar insurance companies from denying coverage on the basis of pre-existing medical conditions and for the first time limit their ability to charge higher premiums on the basis of age or family size.
Think about that. We’re about to embark on trillions of dollars of government spending over the next couple of decades at least because we don’t like the fact that insurers price their products differently depending on the risk they’re assuming.
Imagine you’re a skydiver with a bad heart. You’re attempting to set the new world record by Scotch-taping yourself to a 1968 VW Bus and parachuting out of a B-1 Bomber. Over the grand canyon. While on fire. You go to your local insurer and attempt to buy insurance. Would you reasonably expect to be charged the same for your policy as a healthy 25 year old non-smoking female Olympic swimmer? Would you really?
Insurance is NOT the same thing as “FREE CARE”. Too many people think it is and it’s this misconception that is driving this debate into the dirt. Insurance companies don’t have to offer you insurance in exchange for money. This (for now) is a free society. They could just as easily go make hot dogs or mow lawns. Instead, through their own free will, they have (thankfully) decided to offer a service to cautious people. In exchange for a monthly sum (called a premium), they’ll promise to pay you a set amount of money in the event that some event happens. As I’ve said in the past, it is a bet. You’re betting that the thing will happen and they’re betting that it won’t. Your death for example. Life insurance. You’re betting Prudential that you will die within the next 30 years. They’re betting you won’t. They’re so confident you won’t die that they’re willing to pay you a lump sum of a million dollars if you end up dying. And all that bet will cost you will be a monthly premium payment.
How big should that premium payment be? Let’s go back to our sky-diver. How big should his monthly premium be? How likely is it that he’ll be right and end up dying? Pretty likely, right? So of Prudential is going to pay him that million dollars for dying in the next 30 years, they’re going to require that the monthly premium be high, right? Higher at least than the 25 year old non-smoking female Olympic swimmer. She’s not likely to die at all. Their promise to pay that million dollars is then a safe bet.
People with pre-existing conditions, who are extremely likely to require care, are by economic necessity going to be priced higher than people without those condition. Remember, it’s all about managing risk. Betting. If insurers charged people with pre-existing conditions as if they were healthy, then when it came time to pay out benefits, insurers would take a huge loss. Multiplied over millions of policies, it wouldn’t be long before insurers went out of business.
This would be bad.
For everyone.
The same thing with premiums which “discriminate” by charging higher premiums to older people or to people with larger families. Whenever a party becomes “more likely” to receive a benefit, an insurance company must manage that risk by charging more. Low risk people mean low premiums. High risk means high premiums. All these “egregious practices” which have motivated the left to overhaul our entire insurance industry, are all founded upon basic economic principles. These insurance companies aren’t evil. Their practices aren’t “egregious”. They offer us ALL protection against unforeseen events and the current witch hunt against them is criminal.
Let’s get back to that word for a minute. “Unforeseen”. Health insurance, unlike life insurance, deals in things which are foreseeable, right? We know we want to go to the doctor twice a year and to get “routine” bloodwork done. We want “regular” breast and prostate exams. Remember our sky-diver? His death was “foreseeable” in the life-insurance context, which means his premiums were adjusted up. Not much of a bet when it’s very likely you’re going to lose. To manage that (high) risk of loss, you charge a higher cost to the insured to play the game. Same with the sort of “regular” care most people want in the health-insurance context. If you’re telling your insurer up front that you’re going to DEFINITELY be making claims MULTIPLE TIMES a year to cover exams, shots, etc., then how can your policy be ANYTHING except EXPENSIVE?
This is what people on the Left just do not seem to understand, or if they do, they do a good job of concealing to perhaps realize their underlying objectives of a socialist government in general.
And this should all seem very familiar to you. This should all seem like deja-vu. There was a time when the government thought that more people should receive loans to buy houses too. Remember what happened there? Despite the basic economic principle that people should be given loans based on the likelihood of their ability to pay, the government forced lenders to lend to high risk people, then subsidized those loans and guaranteed them with Sallie Mae and Freddie Mac. What happened there? Do you remember? Look at the headlines if you’re unclear. Unemployment at 10%. No money to be found. Credit dried up. Housing market plummeting.
And we go blithely on pretending that THIS TIME the government knows what it’s doing and that THIS TIME they’ll get it right. Forcing insurers to make economically unsound decisions to insure high risk people at low premiums and then have the government guarantee those bad policies with tax dollars is ITSELF an “egregious practice”. Do we have to wait until it all blows up AGAIN before we realize it was a bad idea?
And this of course is not to say that high risk people should not receive care. That’s dumb. Of course they should receive care and of course they should be able to purchase some type of policy that insures the costs associated with that care. It’s just that government until now has stood in the way of private insurers working together to solve this problem via competitive markets. It is ILLEGAL for example to purchase policies across state lines and to buy policies that do not contain state-mandated things like prostate screening for women or breast exams for men. Because states require that all policies contain provisions for insurers to pay for these things, the costs of those policies (as we’ve seen above) rise unnecessarily. Astronomically. How about a sick person in NY being able to buy a stripped down policy covering only his immediate requirements via the internet from an insurer in California? He can’t. It’s illegal to do so.
That’s where health care “reform” should start. That it’s not, is all you need to know about Olympia Snowe and her “egregious practices”. Reform is not “reform” because someone tells you it is. Break it down. Look it over. When you do so, if it seems like it’s only really an excuse for another expansion of government, you know you’ve hit on something. You’ve hit on exactly why nobody on the left gets too into specifics when they talk about “what’s wrong” with the current system.