Wednesday, July 22, 2009

There goes your health insurance - Betsy has a long post detailing how a public option plan will crowd out private insurance because it doesn't play by the same rules: the government-run will be subsidized by taxpayers and will dictate payment terms to doctors and hospitals, just like Medicare does now.

Here's the nightmare scenario: companies drop private insurance for the government plan, the program becomes huge and thus hugely expensive, while hospitals go bankrupt due to reduced reimbursement rates.

What's not to love?


Anonymous said...

As an added benefit, social security is saved as life expectancy decreases.

The Capitalist said...

They are trying to debase health care like they did with currency in this country. If you are familiar with Gresham's Law, it states that "Bad money drives out good", there are some who argue that it drives it to a ridiculous premium. It is why bi-metallism led to a silver standard and eventually why fiat money took over for a gold & silver backed currency in this country. Now gold and silver are at a premium!

This is the comparison that can be made when there is a state-run health care system and privatized systems, it is a cheaper and debased health care system. Hence, being the debased and favored program it will drive out the privatized programs (still heavily regulated) and it will hurt many. This case has been illustrated on a global basis. Every country has debased its health care system to its lowest level, but the United States, yet.

WJ Bryan said...

Amen, brother! You shall not crucify my $25 co-pay on a cross of gold!