Listening to the radio tonight, I heard a senator say that the so called public option will “inject competition” into the marketplace, to drive down prices. If they are successful, we should have them inject extra competition everywhere. I, for one, would like cheaper microbrews.
Its too bad we don’t require our Congressional representatives to pass an economics test before we give them the authority that we do.
One cannot inject competition. To increase competition, you must instead remove barriers. Do that, and competition rushes in all by itself. If competition does not exist, it is because something is keeping it out.
In most of the country, there is in fact a lot of competition among health insurance companies. In some states though, there are only one or two companies writing most of the health insurance. Yet hardly anyone asks why this is the case.
The states that have few insurance companies writing policies are states that have a lot of rules that make the cost of coverage go way up – such as guaranteed issue rules.
The companies that do operate in those states are of course very well connected, politically. It is a see-saw, where the less free market you have, the more special interests, and political connections and money control the process.
If a public option passes, there are a couple ways it could go. The public option may not be chosen by the public, because it is not efficient and costs more. Or, the government option will be subsidized by tax dollars and will undercut private industry, eventually leading to a government take-over of healthcare.
Its interesting watching the healthcare debate. The biggest problem is the runaway costs, yet the current proposals do little if anything to reign in spending.
Of course, politicians always like to act like they’re giving you something, before they take it away. What will they be taking away? Oh, our money in the form of higher taxes and higher premiums, and our access to quality health care in the form of long waits and other rations on care.
So let’s all ponder how higher premiums will affect the number of uninsured. Currently, a third of all policies sold to people who previously had no coverage are high-deductible (low cost) HSA-qualified plans.
That’s about 1 million people who now have coverage because of availability of these plans. Read the rest of this entry »
When Medicare was first enacted in 1965, men had an average life expectancy of almost 70 years. So the average guy received Medicare benefits for 5 years.
Now the average male lives to be about 75, and the average guy receives benefits for twice as long.
In January of last year, the first babyboomers started retiring. This massive wave of retirees will start receiving Medicare benefits, and be spending so much that Medicare trustees predict funds will run out in 2019. Read the rest of this entry »
Learn how your HSA-qualified plan must be effective no later than December 1st in order to qualify for a 2009 tax deductible HSA contribution (which could reduce your April 15th taxes by $1900 or more!).
The Congressional rush continues towards a reckless takeover of healthcare. Nancy Pelosi is hoping to schedule a vote for tomorrow at 6 pm. It is certain that she will get zero Republican votes, and uncertain whether she has the Democrat votes she needs.
Those who support this bill and claim to be for more competition, are really against allowing true competition by enabling people to choose the type of health coverage they want, and purchase across state lines.
Instead of legislation which encourages people to carry their own private health insurance coverage, this legislation further entrenches employer-sponsored health insurance – lessening individual choice, and leaving people tied to their employment. Read the rest of this entry »
On Friday I called my Congressional representative Betsy Markey. I wasn’t able to speak directly to her, but I did get a call back from her representative, and we had a nice long talk.
The main thing we talked about how was much the premiums will go up on our customers, and her constituents, if this healthcare reform passes. (That’s looking like a bigger “IF” than ever, by the way).
When it happens, it will be easy to look back in history and see where this has occurred before. In the late 80’s and early 90’s, several states passed legislation that was to guarantee affordable health insurance to all. Here’s a few quotes: Read the rest of this entry »
Will Health Savings Accounts be part of the future healthcare bill? Well, its starting to look questionable whether anything will even pass, but if so, here’s where things stand with Health Savings Accounts:
Senate Majority Leader Harry Reid has now announced that the health care legislation he is drafting will include a government-run health insurance plan, or so-called “public option”. At least the most liberal of the liberals out there are being honest about this, and are for it because it will lead to a single-payer system. But most of the Democrats that support this are saying its purpose is to “increase competition” and “keep the insurance companies honest.”
Politicians saying they want to keep someone else honest. That would be pretty funny, if it weren’t so deceitful and tragic. Read the rest of this entry »
One of the ways Congress plans to change health insurance is to interfere with market pricing based on sex. Anytime government gets involved in the pricing of privately sold goods and services there are some unintended consequences. In this video I talk about what some of those are.
Turns out that Senators from “red” states are taking care of themselves in this bill.
Senator Harry Reid’s state of Nevada will be exempt from increased Medicaid expenses that other states will face, for the first 5 years of Obamacare. And there’s more: Read the rest of this entry »
