So Simple Even a Cave Man Can Do It

Why do people always think that the answer to a business that raises rates on a product is to have government step in and regulate the price? No where is this more evident than in the health insurance industry and the issue is particularly timely in California, where Anthem Blue Cross is raising some rates up to 39%.

In today's local fishwrap, also known as the LA Times, they have an article about how the California Assembly in Sacramento passed a bill out of the Health Committee that would require health insurance companies to justify their rate increases.

Health insurance companies and most preferred provider organizations would have to get approval from the Department of Insurance, while HMOs would have to get an OK from the Department of Managed Health Care. The state agencies would be charged with determining that premium increases are "not excessive, inadequate or unfairly discriminatory," according to the bill.

Well, what is "excessive?" According to the article, more than 7% is excessive. Really? How did they arrive at that number? Did they just pick it out of thin air? The article doesn't say. But this proposed law has one Woodland Hills mother enthusiastic about it.

But Laurel Kaufer, a Woodland Hills mother, complained that her biggest problem was a recent 34% rate increase to $1,100 a month from her insurer, Anthem Blue Cross.

"I am required to seek prior approval before I can expect to receive coverage from my insurance company," she said. "There is no good reason why Blue Cross should be allowed to raise my rates without prior approval."

Hey, Laurel, they actually do have to get your approval to raise your rates. They send you a letter saying that your rates will go up unless you opt out. I know because I'm with Anthem Blue Cross and I got a letter.

But back to this new law they're proposing and the power it will give to government bureaucrats. How do we know that these Government agencies are always looking out for us and not them? That side has lobbyists too and they can write big checks. Who is to say that a little money spread around the capital by Anthem Blue Cross or Kaiser will allow them to raise rates as high as they want? Why should we give government more control over this? Why shouldn't the people have more control over this?

My suggestion is for California to open up the state to other insurance providers. Legally, there is nothing stopping them from doing this as the state insurance commissioner already has this power. That way, you could go find another health plan that would cost less per month. Gee, wouldn't it be great if we could shop around for health insurance just like we shop around for auto insurance? That's an idea so simple even a cave man would get it.

Unfortunately, we seem to have the neanderthals running government.

New Rules

So now that my health insurance premiums are going up because I will now have to subsidize Fatty McButterpants's health care, I want the right to impose some new rules on my fellow Americans.

1) If you are overweight, you are not allowed to smoke, drink alcohol, or eat fast food.

2) If you are currently thin, you will not be allowed to get overweight. Eating anything fattening is now illegal because it will cause you to gain weight and that will cause problems down the road so let's just cut that out now. Put down that piece of cheesecake and back away. Slowly.

3) Intravenous drug use shall remain illegal. If you are caught using intravenous drugs, you will be shot on sight. I don't want to have to pay for your rehab bills and let's face it, how many of you are really going to turn your lives around rather than relapse?

4) People will be forced to join a gym and exercise for at least 30 minutes a day. And if you can't find 30 minutes to exercise, your employer must allow you to take the time out from work to exercise, just like voting.

5) Smoking is now illegal because it kills and it will cost money to treat people with lung cancer. C'mon America, we can put those cigarette companies out of business.

So let's start with those new rules and see where that gets us. I'm sure the founding father would be so proud of us right now.

Why private insurance cannot survive the public option

And no, it's not for the reasons you think.

The Republican line on the Public Option is that it will crowd out Private Insurance carriers because they won't be able to compete against an entity that can print its own money and has access to a potentially unlimited pool of tax dollars.

This is, in a word, horseshit. On this point at least, President Obama and I agree. And frankly, if the Republicans are going to push the idea that the free market will save the economy and not government intervention, then they should try to show a little more confidence in that free market... don't you think?

The American free market is the best in the world and we can compete with anyone, anywhere, anytime... sure would be nice to hear someone on the Republican side say this every now and then.

Now it IS true that the government plan will be cheaper... it will, in fact, be free (as much as anything that drains money out of your paycheck in the form of taxes CAN be free anyway). And it's pretty hard to compete on price when one side provides the service for free... but private companies will always be able to compete on quality.

We all know that when Obama says there will be no rationing and no lines under Obamacare, that he is absolutely 100% full of shit. We KNOW it. And I for one have no intention of ever turning over my health care needs to a government agency. I will always go out and pay for quality care delivered when and how I want, by a profit-driven company, on my terms...and million of my fellow Americans will join me.

We already have a precedent for this... it's called education. Government provided education in America sucks and gets suckier with each passing day. Millions of American families are willing to spend outrageous amounts of money to send their kids to private schools even though at the same time, their tax dollars are taken from them to pay for a free Public Option.

They choose quality over price every single time.

And they will do the same for Health Care.

Imagine the TV spots...

"Tired of waiting for six hours in the cinderblock lobby of the Bureau of Social Health Issues to see a doctor who graduated at the bottom of his class at the Rocko Clubbo School of Medicine? Log on to KaiserPermanente.net and take a look at all the high quality plans we offer. We guarantee you'll see a doctor within 30 minutes or your visit is free."

Which is why Obama simply cannot, and will not, allow private iunsurance companies to continue to offer high quality private plans.

Because when the stories of six hour waits and denials of procedures start to leak out, and they will, people will freak out... millions will leave the public option for private plans and those who remain will, by definition, be the poorest and sickest among us who cannot afford to leave a lower quality, though free, public service.

But in this world where quality healthcare has been re-defined as a "right", what does it mean if the wealthy can get great high quality convenient care on their own terms while the poor are corralled into cattle call waiting rooms for substandard care?

It won't happen. It CAN'T happen. It is the entire promise of Obamcare... that no one will be better off than anyone else.

And that's why private insurance companies must be eliminated. As long as they exist, Americans who work hard and are successful will refuse to allow themselves to be forced into a government definition of "equality."

And we can't have that, can we?

Choice and Competition in Health Care

Well, since the poll numbers for Obamacare show support for a public option dropping like a stone, the White House has regrouped and is now attempting to sell their plan as "choice and competition" in health care. And how does President Obama believe he can bring choice to health care? Does he want to relax the regulations that prohibit people from buying insurance across state lines? No, despite the thousands of insurance companies already doing business in the United States, he feels that the best way to bring competition and choice is through a government owned public option. Only a man who has spent his entire life and government and never worked in the private sector could believe that government will bring choice and competition to the table.

Using his logic, we need government owned gas stations to bring choice and competition to people who buy gas. We need government owned grocery stores to bring choice and competition to people who shop. We need government owned car companies to bring choice and competition to people who buy cars. Oh, wait, we already have that in GM.

This whole thing about choice and competition only being available through a public plan is deceptive and dishonest. I am actually surprised that instead of responding substantively to the views being presented to the administration through ordinary citizens at town hall meetings, the administration continues to ignore them and press forward with its plan to overhaul the entire health care system. They haven't changed their plan at all. They've simply changed their message to choice and competition.

People are freaking out about the deficit and their own financial situation, the last thing they want is another government program that adds to the national debt. Despite what most in this current administration believe, the American public isn't stupid, especially the middle class. They instinctively know that if something like this goes through, it won't only be the rich paying for it, they'll be paying for it as well.

And they're not buying it.

So by all means Democrats, go ahead and pass something purely on party lines which includes higher personal tax rates, higher corporate taxes, penalties for businesses that don't provide insurance, and a value added tax. Good luck in 2010 running with that on your resume.