Correspondent of the Day: Private Insurers Fear Obama’s Health Plan
Private Insurers Fear Obama's Health PlanEditor, Times-Dispatch: To respond to a question posed by President Barack Obama during his Rose Garden press conference: "If private insurers say that the marketplace provides the best quality health care; if they tell us that they are offering a good deal, then why is it that the government, which they say can't run anything, suddenly [is] going to drive them out of business?"
If the federal health care plan (FHCP) rates are underpriced (as expected since the federal government will want to make the program as attractive to the marketplace as possible), then the federal government will be required to pass along some of the losses in the form of future tax increases, although the vast majority of the losses will be passed through as ongoing deficits (similar to how Medicare losses are currently recognized). Since the FHCP will not be able politically to pass along a sufficient rate increase in subsequent years to be self-supporting (as is required by the insurance companies to remain viable), more participants will continue to choose the FHCP, which will mean future tax increases will be needed to cover the losses and/or the federal deficits will be grossly accelerated (neither of which is an available option for the insurance companies).
The insurance companies in the interim will lose market share, have fewer people with whom to spread the risk and administrative expenses, and have to raise their premiums even more to cover past and expected future losses. It will not take the insurance companies long to realize that they are in a protracted death spiral from which they cannot possibly recover -- so they will decide pretty quickly to get out of the business altogether.
In three to five years, the FHCP will be the only viable plan option.
Gary S. Powers.
Midlothian.
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As opposed to socialized healthcare, what’s the recommended alternative for persons not eligible for private insurance?
Mochame8.. is right.. there are a lot of people that use services that are not contributing and they are creating more need for services. People complain that they can’t afford housing, insurance etc.. for their families.. How about we don’t start popping out mouths we can’t feed or take care of? I mean, that is not a completely novel concept. It may sound elitist.. but it is just so obvious to me that people are going to have a better chance at success if they aren’t limited by children before they are ready. Sure.. some people have problems after they already have kids.. I understand that, but too many young kids with no means of supporting themselves, much less another human being are having babies. How are you going to get an education? How are you going to feed more than one mouth on minimum wage.. It isn’t the answer to pay these people more.. it’s for them to learn how to live within their means.. Planned Parenthood is virtually free for low income people..it is much cheaper than diapers.
This isn’t elitist.. this is realist.. If you don’t saddle yourself with a kid at 15 (or whatever age if you can’t afford them).. maybe you will be able to get a good job and be a contributing member of society..
I work in a hospital in northern Virginia. You have no idea how many people have Medicaid. 9 out of 10 are foreigners that can barely speak the language. To make matters worse, a large number are woman having babies that are already receiving Medicaid and they are overwhelmingly Hispanic. I don’t know what the answer is but I know I am tired of supporting people that can already not afford insurance and keep expanding their families.
....and Germany provides free health care to how many illegal aliens from Mexico and other Latin American countries? What is the ratio to the number of people who pay in vs. receive services in Germany - what will be the ratio in the United States?
I don’t know about this “me only” accusation - I mean, when someone demands a part of my salary to subsidize their life without having to look me in the eye to ask for it, what’s that called? Sounds like a new twist on entitlement, greed and “me only”. When I work hard to take care of my family and someone demands that I take care of his family too - what’s that called? Sounds like a new twist on entitlement, greed and “me only”. There’s a portion of the population that doesn’t seem to understand the difference between charity and government coerced financial confiscation.
If the ever expanding budgets of social programs the government administers are any indication, taxpayers will be coerced into paying more and more and more for people who demand it for “free” - which is what we’re starting to see now.
Fortunately, Cuba is only 90 miles off the Florida coast.
If you hit the right breeze and hope the sharks don’t see your feet dangling off the raft, you can get better care from Castro than Obama and the Democrats.
thetruth: are you going to just keep posting the same lame sentences on every RTD site until you get a response you like? Why don’t you save yourself the trouble and reply to yourself?
Jerry, I have a private, tax free health care account I set aside money in every month out of my paycheck to cover the usual needs at the Doctor - colds, physicals, sports injuries, short hospital stays, etc. I also have a catastrophic health care policy, that is affordable, in the event something horrible happens. If we play health care smart, we can cover more people at a reasonable price without involving the government with all of their associated inefficiencies, pork and bloated budgets.
“I do know a friend who is in business for himself and cannot afford the premiums for coverage through his small business, nor on a personal level…“ These words and rest come from one with a heart, a compassion for others, not found by all among us. We trust our society is still a majority of civilized peoples and few “me-only”.
The principle at the heart of Germany’s system? Germans call it “solidarity.“ The idea is that everybody’s in it together, and nobody should be without health insurance. They have enough smarts to recognize cost of basic health care is directly or indirectly shared by all, whether by taxes, premiums, or costs for goods & services.
Only possibility for the “me-only” crowd of cold-hearted folk is if ever they recognize when the tank up their vehicle, buy food, purchase anything, even foreign-made goods, part of what they pay goes to our nation’s health care cost, the highest on earth at 17% of GDP and growing larger as slice of the GDP pie.
I just don’t know Randy. This is a very complicated subject with no easy answers. I just wish someone could explain to me why one day in a hospital can reach an exorbitant amount of money way up in the thousands. Our health care costs even when you are insured are just astronomical. Even though I was able to afford the high costs related to “my part” after insurance, I can’t help but wonder about those many, many others who can’t.
I do know a friend who is in business for himself and cannot afford the premiums for coverage through his small business, nor on a personal level. Bottom line, they are uninsured. His wife was diagnosed with breast cancer last year. They both work hard, own a home and have two teenage sons. Her medical bills are going to put them under. These are folks who try and they are good people. Would it not be a good thing for them to be able to have a choice of some kind of health care insurance more affordable.
It is a very complex problem in this country which I am hoping that some day there is a solution we can all live with.
Jerry - I understand your point about paying for private healthcare and tax money being used to subsidize government administered health care. The problem is you’re asking more and more from taxpayers to cover the costs of a boat load of people who won’t be paying into the system in any way. Is that really fair to people who have to foot the bill even though they are already taking care of their own? Would it be fair that those middle class taxpayers who have to pay more taxes to subsidize someone else’s health care will have to live on less despite working hard for what they’ve earned?
Remember Obama ridiculing McCain for suggesting a tax on health benefits during the campaign and suddenly the topic is back on the table?
When recipients don’t have to look someone who is going to foot their health care bill in the eye and say to them, “I know you worked hard for your money and times are tight, but, I need more of your money for my “free” health care - it’s really easy suggest that a government administered option is the way to go.
Just when you thought we’ve paid enough to subsidize inefficient government social programs, here they come again and they want more of your money. If you’ve worked hard, made the right choices, provided for your family, paid your taxes and lived within your means, there’s a penalty for that - it’s subsidizing other people’s lives, no matter how they live and what they choose to do. Kinda discouraging.
Oddly enough, some of the same people who accuse those who have worked hard and taken care of their own of being greedy are demanding money from these same people to cover their health care, so they don’t have to pay for their own - is that not greed also? It is.
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