Give Health Insurers a Break
You don’t have to be in the Michael Moore camp to see the truth in this argument put forth by liberal writer Ezra Klein. You just have to have an understanding of what motivates corporations in a capitalist system—profit.
And the bottom line is that it’s more profitable for health insurers to insure only healthy people, and to fight tooth and nail to avoid insuring unhealthy people, who, after all, will end up costing them more money. If you disagree with this premise, you might as well stop reading.
This is not a criticism, rather it's a statement of fact. Whether your inner economist is Karl Marx or Adam Smith, that's just how it is.
That’s why it’s silly to be shocked or outraged by the recent actions of California insurers, who are in the hot seat for rescinding tons of individual policies. They’re just doing what they can only be expected to do. To get mad at them is as pointless as getting mad at cows for overgrazing a field. Vilification is not the answer.
I’m not for getting rid of private insurance. In general, I agree with the notion that markets are better than governments at delivering goods and services cheaply and efficiently, and there’s no reason why we can’t have universal coverage via private insurance. I also believe that the quality of our health care, for those who have access, is among the best in the world.
But there will have to be many tweaks, lots of cajoling and some tough legislation to make private insurance available to all. And if there isn’t a way to create incentives for insurers to cover everyone—healthy and not—then more forceful approaches may be in order. There may be some growing pains after reform, but before you can snap your fingers, insurers will be back to doing what they do best: delivering their service in the most efficient and profitable way possible.
Ready. Set. Discuss!
Comments
I'm ready to discuss, I just don't know the answer. It is difficult to think of making a profit at the expense of someone's health, health care or life. But it is equally difficult to think of a business that isn't allowed to make economic decisions. Hopefully, there is amore enlightened readership out there ot offer opinions.
However, I am going to sit and muse about my inner economist - Marx or Smith.
Posted by: Lori | February 24, 2008 04:24 PM