Screw the Insurers, Kumbaya
In the Milwaukee Journal Sentinel they detail out how wonderful life will be under the government run plan, well, unless you are a consumer or insurance company. Of course, the latter is supposed to get screwed in the whole affair since we apparently have agreed that they are evil incarnate.
Suppose that, besides being the Enemies of All Mankind, health insurers are actually right.
Some companies noted last week that Congress’ plans to mandate that everyone buy health insurance include only weak penalties. The plans also make insurers take on customers who are already sick. If you’re young and daring, you pay the low penalty and go insurance-free until your doctor says you’ve got cancer. You then apply and pay $800-a-month premiums for $10,000-a-month care. Sweet, until the industry inevitably collapses, say insurers.
Recently, the industry interest group for health insurers noted that premiums would go up under the Baucus plan, which appears to be the settled on engine for health care reform. The administration then responded to this by saying they were lying. Yeah, I mean, who would think companies that will be charging for the premiums would have any idea what they will do with those premiums when the rules change. Washington based bureaucrats know much better about how the law of supply and demand will work.
The author implies that the health insurance companies will eventually get bailed out and they’ll just pass the costs on to the consumer, usually the young and healthy consumer. While I think some well connected companies will have their desires heard, I’m pretty sure the main drivers of this (Obama, Pelosi, et al) have no desire to save insurance companies. That’s why the public option is so vital to them. True the government wants to have a public option to “compete” with private insurance plans (and what right winger wouldn’t like competition, right?) But the public option is only meant to compete as long as the deck is stacked to make it win the competition. Insurance companies going out of business is a feature, not a bug in the eyes of our soon to be health care overlords. Its time we stop letting them pretend otherwise.