•10:09 PM
One of the most important political issues besides the economy is health care. The rate of soaring health care costs is alarming to me and to most Americans. It is my belief that competitive forces should push prices lower - not higher. Solutions are being proposed in congress as well as by most of the presidential candidates. It worries me that most of the solutions being proposed involve more government. Not only do I not see the power over health care within the bounds of the constitution, but I also disagree with government involvement and regulation in private industry. Socialism is by definition the control of private property by the community or the government. At our nations founding, we, as Americans, ascribed to the free market system rather than a socialist system. However, when the free market system is perceived to have failed us, we move towards socialism to find a solution.
It is my opinion that we the people are being told that the free market system has failed us in the health care industry. By looking at health care premiums, out of pocket maximums, deductibles, co-pays and the like, I would agree with them. However, it just doesn't seem right to me - there has to be something missing.
What if our current health care system isn't really free market? That is what I proposed to Congressman Rob Bishop and Senator Orrin Hatch. In our current US Anti-trust laws there are two industries exempted: Major League Baseball and Insurance. I believe that the protection afforded to the insurance industry could be a likely cause of our rising health care costs - simply because they are not required to compete in a fair, open market system. This protection keeps them from competing against each other and allows prices to soar - and the consumer can do nothing about it.
My letters received two entirely different responses. I got a personal phone call from my congressman who said he was in favor of creating an environment of more competition but was unaware of the protection the insurance industry enjoyed and promised to look into it. Senator Hatch on the other hand sent me the following:
"Dear Mr. Coman:
Thank you for your letter... I certainly understand your concern regarding this issue. I have heard similar concerns from Utahns regarding these matters. In addition, over the past few years, legislation has been introduced in Congress that would repeal all or part of the insurance industry's anti trust exemption.
In general, I approach antitrust issues with the priority of doing what is best for the consumers... there are (however) many arguments in favor of maintaining the insurance industry's current exemption.
Rest assured that, as the Senate continues to debate this issue, I will work to ensure that we properly balance the needs of the consumers with the needs of various businesses. While I recognize that repealing or even imposing certain limits on the current exemption might have some market benefits, I would be hesitant to support legislation that would unduly harm small insurance companies and agents, especially those in Utah...
Sincerely,
Orrin G. Hatch"
I am inclined to disagree with my Senator. I am worried that this is a short sighted approach - if we don't do the right thing, it will hurt the consumer as well as all of the insurance companies as we move to more socialized medicine due to the failure of the current system to bring us the care needed, for those who need it, at a price they can afford. It is my opinion that the free market hasn't done this to us - it is everything but the free market. Plastic surgery is a great example - it's not covered by insurance but the prices have been falling year after year while care and quality has gone up and up. The free market could get us out - we need to send in our voices and ask the government to repeal the exemption afforded the insurance industry.
Freedom is the answer.
It is my opinion that we the people are being told that the free market system has failed us in the health care industry. By looking at health care premiums, out of pocket maximums, deductibles, co-pays and the like, I would agree with them. However, it just doesn't seem right to me - there has to be something missing.
What if our current health care system isn't really free market? That is what I proposed to Congressman Rob Bishop and Senator Orrin Hatch. In our current US Anti-trust laws there are two industries exempted: Major League Baseball and Insurance. I believe that the protection afforded to the insurance industry could be a likely cause of our rising health care costs - simply because they are not required to compete in a fair, open market system. This protection keeps them from competing against each other and allows prices to soar - and the consumer can do nothing about it.
My letters received two entirely different responses. I got a personal phone call from my congressman who said he was in favor of creating an environment of more competition but was unaware of the protection the insurance industry enjoyed and promised to look into it. Senator Hatch on the other hand sent me the following:
"Dear Mr. Coman:
Thank you for your letter... I certainly understand your concern regarding this issue. I have heard similar concerns from Utahns regarding these matters. In addition, over the past few years, legislation has been introduced in Congress that would repeal all or part of the insurance industry's anti trust exemption.
In general, I approach antitrust issues with the priority of doing what is best for the consumers... there are (however) many arguments in favor of maintaining the insurance industry's current exemption.
Rest assured that, as the Senate continues to debate this issue, I will work to ensure that we properly balance the needs of the consumers with the needs of various businesses. While I recognize that repealing or even imposing certain limits on the current exemption might have some market benefits, I would be hesitant to support legislation that would unduly harm small insurance companies and agents, especially those in Utah...
Sincerely,
Orrin G. Hatch"
I am inclined to disagree with my Senator. I am worried that this is a short sighted approach - if we don't do the right thing, it will hurt the consumer as well as all of the insurance companies as we move to more socialized medicine due to the failure of the current system to bring us the care needed, for those who need it, at a price they can afford. It is my opinion that the free market hasn't done this to us - it is everything but the free market. Plastic surgery is a great example - it's not covered by insurance but the prices have been falling year after year while care and quality has gone up and up. The free market could get us out - we need to send in our voices and ask the government to repeal the exemption afforded the insurance industry.
Freedom is the answer.
4 comments:
Ken,
I agree with you that Healthcare needs to stay in the free market. I was watching the Democrats debate on Saturday and had to turn the channel when Sen. Edwards started to mention the "evil pharmaceutical companies". His little rant on the debate was one of the most socialist rants I've ever heard by a Presidential candidate. Scary.
Anyway, when it comes to healthcare, I thought ABC's John Stossel did a great show on 20/20 back in September 2007 on the subject. Here's a link to the show:
http://tinyurl.com/2a5c24
Mike,
You are right. The companies are not evil in my opinion. I worked in the pharmaceutical industry for over four years and was incredibly impressed by the calibre of individuals I worked with and recruited - both morally and professionally. Power unchecked though can become very destructive - and that is the problem. In my opinion the unchecked power lies in the insurance industry - they are the ones who set the prices we pay and the caregivers receive.
We need to let the market check that industry and bring a balance between the needs of the consumers and the needs of business.
The same goes for oil. I often hear about the big oil companies setting the prices. The interesting thing is that over 90% of the oil is owned, produced and sold by governments - not private companies. The need to control our resources by giving that power to the governments is coming back to bite.
All the best Mike - Ken
It is amazing to me that when I shop for insurance, the sales people tell me what a great deal their insurance is. They go on about how low the deductible is compared to other companies and about the great benefits one receives from "their" company. Of course, that is per person. You still have to pay the deductible for each member of your family. And at the start of a new year, they deductibles are erased and each family member starts anew, paying on their deductible.
My family has not seen the doctor for a sick visit in a long time. If I were to pay some of these premiums every month, for the little benefit I get from seeing a doctor, I'd be paying far more than I would if I just paid the occassional doctor bill. Why do insurance companies not see that the average person could pay themselves the same premium in a savings account and actually have more for those needs than what they, the insurance companies will cover?
My homeowners insurance, and my vehicle insurance are a fraction of what medical insurance would cost. It's nice to have them there incase something happens. But with health care, one almost has to hope to get sick, just so one can take advantage of what they are paying for.
Mik,
I very much agree with you. There has to become more readily available a reasonable alternative that meets the needs of the regular consumer.