Sue Da Feds Sue Da Feds
The big problem with health insurance is that young people who feel they are immortal, hey I remember that, don’t want to buy insurance. They want to buy bling.
Obamacare is the bling-reduction act.
If the healthy people are not paying premiums, only the unhealthy are. When the only participants are the costly ones, and the healthy ones are staying out of the pool, it’s a very toxic pool.
Then, young person has sick baby or sick spouse and wants to join the pool; suddenly the payouts jump and the premiums do not. Insurance company says: Whoa: We can’t suddenly start paying out $10,000 a month for your kid with spina bifida and wait forever for your premiums to catch up. Insurance company excludes pre-existing conditions for 12 months until the premiums build a reserve.
“Unfair”, cry Waxman and Pelosi. Obama, needing momentum, echoes the lament. He is smarter than that but he needs to ring the bell. If you are going to energize voters on a topic which is way too complex to reduce to sound bites, you have to identify a target and flog the daylights out of it. The target du jour is insurance companies, drab accountant-dominated actuaries who balance premiums and wildly escalating health care costs and woodenly raise premiums.
Unfair? It’s unfair to you, the premium payer, because the insurance company newly forced to take all people with all pre-existing conditions with no exclusion period and no annual limits or lifetime limits, has to raise rates to cover the increases. That would be MY rates, YOUR rates.
My thoughts: first, quit demonizing the insurance companies. Second, let’s buy a dunce cap for Henry Waxman and another for Nancy Pelosi; they demonize insurance companies to generate momentum for their goals. I want to see Nancy Pelosi in a dunce cap. This from a person with a liberal perspective on many issues.
Next, I want to see a study of how much money providers (doctors, therapists, hospitals) waste on paperwork submitted to payors (insurance companies and taxpayers), how much money insurers waste on mailing notices back and forth, how much money is lost when indigent people turn up at emergency rooms for minor problems, how much money Medicaid wastes on free treatment to people with no real problems. There is tremendous waste in health care. Finding it is not something at which government is efficient. Al Simpson to the rescue.
There is more to be said on this subject. Remember Gramm-Rudman? The Grace Commission? Democracy does not work when representatives have to bring home the bacon and simultaneously tell constituents they oppose federal spending.
Congress needs to enact a rule which prohibits members from advocating any measure which benefits their own district.