Credit the Insurance Industry Doesn't Deserve

Imagine someone making this statement: "There are some very nice cars out there you can buy, thanks to the private car insurance industry." You would probably think, "Huh? It doesn't make any sense to credit (or blame) the car insurance industry with the quality of our cars." And you would right. So why the hell does anyone credit the private health insurance industry with the quality of our health care?

The good aspects of our health care system (e.g., specialized care) are good because we're the richest nation in the world with the best universities to train the best doctors, nurses, administrators, and entrepreneurs who develop innovative medical technologies and services. We pay double what most other industrialized countries pay per person on health care. Some of that high cost is due to inefficiencies in our system and price gouging by pharma and medical equipment manufacturers. But much of the reason we pay more is that we have more money and want to have the best health care in the world - at least for those who are insured.

The only job of insurance companies is to spread the financial risk around so that people who need health care can get health care and can do so without being suddenly thrown into financial ruin.

And guess what? The private insurance companies have done a lousy job at their specific task. Instead, they profit by denying coverage to those most likely to need it, resulting in people ending up in emergency rooms more often with serious problems rather than getting treatment earlier at less cost. Ultimately, we absorb those extra costs through higher premiums.and that's why health insurance reform is necessary. Moreover, it contributes to instability in our economy - 62% of bankruptcies are due to medical expenses.

Having a public option like the one proposed by Obama and the Democrats will reduce costs by making sure everyone has access to preventative care and can have injuries and illnesses treated in a timely manner before they become more expensive. It will also increase competition in regions that are currently serviced by only one insurance company. Reducing costs will allow us to extend our high quality health care to everyone in the U.S.

Insurance companies are rightly frightened of competing against a public plan that will not be in the business of taking more money in than they pay out for health care. That's why they're trying to convince us, through their politicians-in-retainer, that THEY are what's good about the American health care system.

But just remember what all Geico contributes to the quality of the Cadillac.