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View Full Version : Thank You Insurance Industry!



Gayle in MD
10-15-2009, 08:05 AM
<span style="color: #000066">Now that the insurance industry has proven to all of us their contemptable intentions and greed, Americans may just get the one thing that will put an end to their decades long fleesing of the America's families, and the unquestionable negative impact on our economy which their unbridled greed has had on all of us.

Now for Wall Street Reform! An end to the on-going Ponzi scheme which replaced what was once known as Capitalism. </span>

An excellent op-ed, from an economic expert.


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The audacity of greed: How private health insurers just blew their cover
Insurance companies say the Senate healthcare bill will force them to raise premiums. Time to call their bluff

By Robert Reich



Oct. 13, 2009 | The health-insurance industry has finally revealed itself for what it is.

Background: The industry hates the idea that's emerged from the Senate Finance Committee of lowering penalties on younger and healthier people who don't buy insurance. Relying on an analysis by PricewaterhouseCoopers, insurers say this means new enrollees will be older and less healthy -- which will drive up costs. And, says the industry, these costs will be passed on to consumers in the form of higher premiums. Proposed taxes on high-priced "Cadillac" policies will also be passed on to consumers. As a result, premiums will rise faster and higher than the government projects.


If you drop a lit match into a tank of Oilheat, what will happen?


A fire
An explosion

Match will go out



It's an 11th-hour bombshell.

But the bomb went off under the insurers. The only reason these costs can be passed on to consumers in the form of higher premiums is because there's not enough competition among private insurers to force them to absorb the costs by becoming more efficient. Get it? Health insurers have just made the best argument yet about why a public insurance option is necessary.

Right now they run their markets and set their prices, and pass on any increased costs directly to consumers. That's what they're threatening to do if the legislation attempts to squeeze, even slightly, the colossal profits they plan to make off of 30 million new paying customers.

They want every penny of those profits. They demand every cent. And if the government dares raise their costs a tad higher than they expected when they first signed on to support the bill, they'll pass those costs on to consumers in the form of higher premiums. They can carry out their threat only because they have unaccountable, untrammeled market power.

But they've now hoisted themselves on their own insured petard. They've exposed themselves. If they had to compete with a public insurance plan, they couldn't get away with this threat. They couldn't pass on the extra costs. They'd have to compete with a public insurance option that forced them to give consumers the best deals possible.

Now's the time for Senate Finance Committee and the White House to say to the insurance industry: You want to play hardball? OK. We'll play it, too. You didn't want a public insurance option. That was one of your conditions for supporting the bill. You wanted gigantic profits from having 30 million new paying customers and the market to yourself. We agreed because we wanted your support and were afraid of the negative ads and hurricane of opposition you could finance. But you're even greedier than we imagined. And now you've demonstrated that greed to the American people. They don't want to turn over even more of their hard-earned money to you. So, insurance companies, we've got news for you. We're going to make sure Americans have the freedom to choose a public insurance option that's cheaper and better, and you're going to have to work hard to keep them your customers.

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wolfdancer
10-15-2009, 04:12 PM
interesting take on the insurers

Sev
10-15-2009, 04:28 PM
You do realize that there are 1700 different insurers in the US??
However they can not compete due to the interpretation of the interstate commerce clause.

Change that law and you will have both competition and lower prices.

A lot cheaper than a trillion dollar boondoggle

wolfdancer
10-15-2009, 04:33 PM
I merely mentioned that I found the article interesting....that you take umbrage to that is beyond my comprehension.

Sev
10-15-2009, 04:38 PM
No umbrage at all.
Just pointing it out.

Sorry if I came across that way.

pooltchr
10-15-2009, 05:25 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">You do realize that there are 1700 different insurers in the US??
However they can not compete due to the interpretation of the interstate commerce clause.

Change that law and you will have both competition and lower prices.

A lot cheaper than a trillion dollar boondoggle </div></div>

Getting to the root cause of a problem and addressing it is not the way this administration operates. Finding ways to grow government and spend more money while taking away freedom from the public seems to fit their agenda a little better.

If you have a hangnail, you can the the nail trimmers and clip the nail, or you can cut off your hand. Both methods will get rid of the hangnail. One is more efficient and makes more sense than the other.

Steve

LWW
10-15-2009, 07:43 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">You do realize that there are 1700 different insurers in the US??
However they can not compete due to the interpretation of the interstate commerce clause.

Change that law and you will have both competition and lower prices.

A lot cheaper than a trillion dollar boondoggle </div></div>

They only realize what they are told to realize.

The most telling thing in the article is that Reich is such a moron that he seems surprised that the costs a company incur are eventually passed on to the consumer.

I will be glad if we ever have some adults in congress and the White House again.

LWW

LWW
10-15-2009, 07:44 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: wolfdancer</div><div class="ubbcode-body">I merely mentioned that I found the article interesting....that you take umbrage to that is beyond my comprehension. </div></div>

Most every topic is beyond your comprehension ... including this one.

LWW