28 June 2009

Health Insurance and Numbers - Some Simple Thinking

Here’s a little simple math regarding health care “reform” or what would be more aptly put as the federal government’s push to universalize health care insurance.

President Obama, through his Health and Human Services Secretary on Fox New Sunday, reiterated that the goal of injecting a federal health insurance plan would be to increase competition in the health insurance realm.  The numbers of that logic are as follows: one insurance provider – the federal government – would ensure that all other insurance providers competed in a manner which lowers cost.  Or, even more simply, one influences many.

On the other hand, there is an alternate opinion that each person in the US should be able to purchase health insurance for himself and his family in much the same way that drivers buy auto insurance.  People would be able to buy the level and depth of health care which they choose to carry and can afford.  The numbers of this alternative is that the millions – those buying individual and family insurance – would expand choice and competition simply by having the ability to pick and choose their coverage.  Private companies would strive to meet the needs of the customer.  Thus, the multitude of consumers would influence (and most likely expand the number of) insurance companies.

The problem that I see with health insurance is that individuals and families have no idea how much their insurance costs; they are decoupled from the dollars.  Bring the costs and the responsibility of health care closer to the individual, and liberty and choices are expanded.  What’s more, costs would probably drop.  One must ask if the current government would be please with that outcome.

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