I follow the White House on twitter, so every once in a while they post blogs that intrigue me. The latest one I read was titled “News Flash: Insurance Companies Will Profit If Status Quo Continues“. In the last six to eight months I have come to the realization that the ultimate solution to virtually all of our problems is the free market and capitalism, and absolutely not the government. As you can imagine the White House negatively speaking about a private industry profiting caught my attention and frankly it made me angry.
As I was reading the blog it’s the same propaganda that insurance companies are bad and the government needs to intervene and stop these insurance companies from making outrageous profits to the detriment of our healthcare system! There are major issues with our healthcare in America. The majority of issues I believe have been made by the government and not private insurance. It’s not just the governments involvement in healthcare that has caused the problems, it’s government over involvement in the private sector in general that is causing our problems from the economy to healthcare. Private insurance has caused it’s own problems and has it’s cases of abuse, but if insurance was truly open to the free market a company would emerge to address those abuses and potentially put abusing companies out of business.
The White House knows and openly admits healthcare reform will damage private insurance. They spell it out right on that blog when they say “insurance company earnings could be cut by 50% over the next decade”. So the White House is attempting to cut private insurance in half over the next decade and you cannot tell me that won’t be damaging to the economy at the very least. What is that going to do to unemployment? Obviously a company whose earnings are cut in half cannot afford to employ all of their current employees.
Lets look at a few points of what healthcare will look like if the government has their way. I’m not an expert but I think I come at this from a pretty logical point of view.
- As if there isn’t enough paperwork already they want more “rigorous reporting” to reduce hospital acquired infections. So to take more focus of off treating you, your doctor will have another responsibility heaped on his shoulders to fill out these government reports. Then the government will have to hire medical professionals to audit these reports to find out if the infection you acquired was from the hospital or not. If an audit finds you acquired the infection from the hospital that would open you up to being able to sue the hospital. And we all know litigation helps bring costs down.
- They want to put their “public option” in competition with private companies. Private industry cannot compete with the government and this is why. If the “public option” doesn’t make money it doesn’t matter. They will just steal the money they need from the 300,000,000+ citizens in the United States to fund their “public option”. Of course they call it taxes, not stealing. If the competitors in your industry could sell the same widget you make for 25% of what you sell it for, and then make up the difference by stealing from your customers as well as people who don’t even have an interest in buying the type of widget you produce; that would make it pretty hard to compete.
- To further hurt the private insurance sector the government would impose fees “on insurance companies offering high-premium plans”. These fees are just another way the government plans to steal from the public to fund their unsustainable “public option”. This is another example of the economic illiteracy of our elected officials. They don’t understand that the insurance companies will not just pay these fees. These fees will be passed onto the people who buy insurance! The same way taxes are! Buying a high premium plan is a choice. Insurance companies are not forcing these down people’s throats, they are choosing to buy these plans.
- The government wants to give incentives to doctors to “collaborate in the coordination of patient care.” As if paying one doctor wasn’t bad enough, the government wants to give doctors incentives to work with other doctors. Involve more doctors, that will bring down cost.
My fear is the government is trying to destroy private sector health insurance. If the government wants to make our healthcare system better, they need to get out! What positive things has the government brought to the table in this area? Medicaid? Medicare? Veteran Hospitals?
Insurance needs to go back to being insurance. Insurance should be for those extreme cases, major surgery, car accidents, cancer, etc. It should not be a third party in our every interaction with the healthcare system. I took one of my daughters to the doctor for a common cold. As newer parents we were concerned with how congested our infant was. I had a feeling it was just a cold, but without really thinking we took her to the doctor. We did not have to think about the cost, or about having any money up front. The doctor billed insurance directly, and we got a bill for what wasn’t covered. If people had to pay the money up front, and get reimbursed from their insurance company I believe they would think about what they are going to the doctor for and in turn that would cut out unnecessary visits and abuse. If doctors only had to deal with patients directly and not insurance that would make your doctor’s office more efficient. My wife works for an insurance company in the adjustments department. Doctors go through a lot dealing with insurance (Medicaid, and Medicare included).
I leave you with this video which I found very informative (this is actually a response to another YouTube video the good points are interjected into the video).