Competition, Chicago Style

President Obama keeps telling us how we need the government option to 'compete' with private insurers. This is of course ridiculous on its face. I have previously written about this here. Now we are getting more details about what that competition looks like. Here is a link telling us that private health insurance is not to be illegal, but in their own piece they tell us that your private health insurance will be grandfathered in (section 102 (a)) UNLESS they enroll new people, start charging more or make changes in coverage. If that happens they will have to comply with the terms of the government health insurance. This is what constitutes competition in the mind of Pelosi, Reid and Obama.

To make an analogy lets say Anthem is the dominant insurer in market. This is the same as telling the other players in the market you have to offer at least the same coverage for the same price to sell in this market, and HAVE THE FORCE of LAW to do it. This is absurd!!! This is not competition. This is FASCISM!!! (note fascism is not the same as Nazism and no one is making the claim morally or economically that President Obama believes in Nazism).

Health care in America has problems. The answer to those problems are not government control. This is absolutely the last thing we need.

The CBO has determined that far from saving us money the health care takeover proposed will cost us much more. (see here) Given the sad state of the federal budget (see the directors blog, Director of the CBO here), more hits to the budget simply cannot be withstood. More true competition (not Chicago style competition) is what is needed. Congress could today remove the barrier to private firms competing across state lines. While this would not fix all of the problems it would allow more creative plans and attract some of the people who opt out of coverage now. A great number of people simply can't or won't pay the premiums that are charged either for plans through their job because they are healthy and see it as a bad investment. If however they were presented wiht alternatives with high deductibles, low premiums and high co pays they would carry it. Surveys have shown this to be true. This would take a large bite out of the number of uninsured people. Increased competition would bring these plans about.

Higher out of pocket prices combined with tax free flexible spending accounts are what is needed. It is cheaper to go to the doctor than it is to go to a professional sports game. It is cheaper to go to the doctor than it is for some people to get their hair cut (not me I don't have much hair to cut). It is cheaper to go to the doctor than it is to take the family out to dinner. It is cheaper to go to the doctor than it is to go to an amusement park for one person. All of this demonstrates that the current system makes it unusually affordable for holders of insurance to go to the doctor. That is terrific if you are sick. Low prices always lead to higher demand. Over use of the systems keeps costs high and prevents more affordable plans. Cases of sick kids that could be treated with Tylenol or cough syrup now warrant a trip to the doctor. A case of the flu that could likewise be treated, gets a trip to the doctor and of course you always need a prescription. Too many people don't self ration because with the relatively low prices there simply is no reason to.

If coverage were scaled back by the market, affordable coverage could be offered to the not insured at more reasonable rates. In a market based plan if you have higher needs, a chronic illness etc. you could obtain the plan you need at a higher price, but still affordable. This can only come about by the government getting out of the market, not taking the market over. When the government gets involved it does not compete it sets the rules. Private competitors have the option to follow their rules and take their chances or get out of the market into other areas of insurance. Ultimately this is what will happen when the Chicago gangsters (also known as the government run by the head gangster President Obama and his capo regime Rahm Emanual) get into the market. We can still stop this farce, sign the petition to stop this sham. Be informed about what this plan looks like. If you study the details you will have to agree this will not help.