National Healthcare – Sorting It Out

Correction: Community Rating Turns Out to Be Even Worse Than I Thought – Megan McArdle

Good post here from Megan McArdle’s blog… critics of our current healtcare structure claim insurance premiums in the state of NY have gone up nearly 25% over the past 5 years, and that justifies government stepping in to control the market. But McArdle points out that NY has one of the most regulated insurance industries… in other words, due to government regulations insurance companies have to charge more to fund regulatory requirements.

If this is a prelude to national healthcare then I’d prefer to keep things the way they are.

[I need to pause here to ask a simple question: Does the fact that insurance companies charge so much for medical coverage automatically mean they are reaping unjustified profits? This is a legitimate question because more and more big business is demonized for earning a profit… isn’t that what a good company is supposed to do? As an investor in any company I want them to earn profits… big profits… massive profits!]

[Another interuption – if a company charges too much for their product the market will penalize them by having another company offer same/similar products for a lower price. Thus outlandish “profits” are minimized due to the natural function of a marketplace. I mention this because, again, I’m hearing that companies are making too much profit. If they are charging too much then it’s only a matter of time before another company emerges to  draw off customers with less expensive alternatives… but then, why does this even need to be explained? My gosh, there is so much bad logic out there.]

Another good point brought up in the comments section of another blog I was reading is that medical costs have risen due to the flood of illegal immigrants. Which is a valid point, although I’d also like to point out that most illegals are here because the WANT to work, not stand on a street corner asking for a handout.

Still, visit any county hospital emergency room and you’ll see an overwhelming number of immigrants, legal or otherwise. That’s got to add to medical costs borne by the rest of us nationals.


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