Robert Marcelis, a research associate with Kersten Communications who is finishing up his government major at Sacramento State University, and John Ryan, also a government major at Sacramento State University, wrote this brief piece on how county’s private health insurance does not work.
Private health insurance doesn’t work. Today, 47 million Americans live either without health insurance or in spite of it. Today, one sixth of the population of the richest country in the history of the world goes without adequate medical care. These people go without coverage because they can’t afford insurance, can’t afford good insurance, or have been denied insurance because of a preexisting condition.
This is a market failure. Costs have spiraled out of control and premiums are too expensive. Many middle-class families that don’t qualify for Medicare and don’t have employer-based insurance face difficult decisions. These families are forced into a zero-sum game, a day-to-day gamble with their health and that of their families. When left with a choice between paying the mortgage, buying food, or purchasing health insurance most choose the former two options. This is not necessary in a world where other countries provide effective universal coverage.
The biggest road block to America’s foray into modern health coverage, of course, is the Republican Party and its misguided attempt to kill reform lest it benefit the Democrats’ reelection hopes. It’s disappointing that Republicans can’t see how health care reform would benefit them as well. If you want to pay lower premiums and have more money in your pocket you should support health care reform. Why? As a taxpayer we are all victims of a hidden tax in the health care system.
When these 47 million Americans finally seek medical attention because they cannot afford preventive care they land in emergency rooms that must treat them. Those costs are much higher than actually seeking preventative care to fix small health issues before they become big ones. As it is now, health care is too expensive for maintenance, thus the uninsured only show up with big problems and they cannot pay their bills. This cost is then passed on to the taxpayer through a hidden tax – higher premiums. As a result, America continues to lumber forth with an inefficient, wasteful, and costly health care system created and sustained by for-profit health insurance companies.
Fundamentally, for-profit health insurance creates a conflict because the industry cannot reconcile both goals – make money and help sick people – at the same time. Ultimately, insurance companies must act on their impulse to make money. If they don’t, they’ll be run out of business by a company that does make money.
Thus, companies are forced into a natural profit-maximizing behavior that compromises the intended mission of helping people. Profits are padded by excluding the old and the sick – to say nothing of the poor, who never had the chance to be excluded in the first place. Meanwhile health insurance companies select the healthiest and the youngest to offer their insurance plans. This is a clear example of how health insurance does not fit the preference for a free market industry.
Last weekend Congresswoman Doris Matsui came to Sacramento touting a package of bills to be voted on by Congress in the coming weeks on health care reform. The package includes public choice elements, market mechanisms, and a public option. This should be attractive policy for Republicans – spur competition, promote efficiency, and control prices through market options and choice.
The Democrats have tabled a plan that uses market mechanisms by creating a public option which will be affordable and that people can choose to buy into. People that like their existing plans can keep them. By spreading insurance risk and working as a non-profit, Democrats push the public option because it will be cheaper and force private companies to improve their pricing or the quality of care to compete.
By supporting reform you will no longer be paying higher premiums because the public option’s market mechanism will create competition which will lower costs. Because people are insured, you will no longer be bearing the burden of someone who is uninsured. We will no longer be paying a hidden tax.
This reform package is a true example of how helping others can actually help all of us. This package will help 47 million Americans get the care they need, have peace of mind, protect their families, and level the playing field for everyone. At the same time this reform will help taxpayers and will lead to a more efficient health care system. Contact csusdems@gmail.com.