Anthem Blue Cross, the largest for-profit health insurer in California, announced huge rate increases for people who buy their own insurance: an average increase of 25 percent, and a 35 percent to 39 percent rise for a quarter of the purchasers.Just what are the options in California, or nationwide, for those who reject such a rate increase? They are either limited, or seriously unpalatable. The can:
- Switch to another provider. Since there are seven main players in the health insurance industry, that does not really provide any meaningful option. Where Anthem goes on this, the others will surely follow simply because they can.
- Switch to a lesser policy for less money. A poor choice, but certainly possible, and one that free-market aficionados would surely champion (until it is their family forced into that situation, then they become Tea Partiers). This option will typically result in one illness causing bankruptcy and economic ruin to the family. If the goal is to exacerbate the trend of the rich getting richer and the poor poorer, this is a great solution.
- Go without. Ultimately, this is a death sentence. Easily preventable or treatable illness will be more traumatic because treatment will be out of pocket, and therefore avoided. Ask any doctor or dentist who treat those who pay as they go.
Free market lovers maximize corporate options while damning government options. In this situation, why not simply make Medicare an option for any American to buy in to? Note that I said both buy, and option. If any American is unhappy with the offerings of the major insurance providers, let them have an option to buy into Medicare at any age. The huge pool of insured should keep rates affordable, and the not-for-profit option helps as well. Further, those over 65 who currently get Medicare for free should be means-tested: If their income/savings allows for it, they should be required to pay for some or all of their premiums (including Senators and Congresspersons). For those who think government-offered health insurance would stink, they are free to continue to pay whatever the Big Guys want to charge for their coverage.
In other words, let competition re-enter the marketplace. If the government offered plan draws people in, the corporate offerings will adjust down to compete, right? And if the government option is awful, then no one will buy into it. As long as there are the likes of William McGuire around, those corporate rates will continue to skyrocket.
On a final note, I will add that America seems to always find money aplenty for dubious wars, but not a sou for taking care of her least brothers (Matthew 25:34-46 for those who profess to be Christian).
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1 comment:
The good news is that, at the rate they're going with their outrageous price increases, the big insurance companies are locking themselves into a classic death spiral -- the more they charge, the more people drop out, leaving only the sickest policyholders who can't afford to cancel no matter what the price, driving up costs further, raising prices more, in an endless feedback loop that is rapidly escalating. Soon there won't be anything left.
We'll have to start over with universal coverage and a public option -- at least if doctors, other medical providers and hospitals ever hope to get paid.
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