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Katz: Rein in insurance companies for health care reform

Thursday, March 11, 2010

Putting aside political stances, we can all agree that healthcare is expensive in the United States. So expensive, in fact, that American’s spend more on healthcare than any other developed country.

According to the Organization for Economic Co-operation and Development (OECD), America commits substantially higher percentages of its GDP to healthcare than any other developed nation.

n 2006, an entire 15.3 percent of America’s economic pie was in health care costs while other universally insured nations spent much less. The next highest spender was Switzerland, at a distant 11.3 percent. The United Kingdom only spent 8.3 percent of its GDP on health care, while surveys reported high patient satisfaction.

On the individual level, this means that Americans are losing much larger portions of their paychecks to health insurance.

If Americans are spending considerably more on health care coverage than any other developed nation, where does this extra money go?

Here’s a possibility: the executives and shareholders of massive insurance companies. In 2009, during the worst economic recession since the Great Depression, the five largest insurance companies made the highest profits since the industry’s existence.

Even more astounding, shareholders of the insurance giants not only enjoyed record profits, but they also doubled their profits from 2008 to 2009. According to Health Care for America Now (HCAN), Cigna, Humana, Aetna, Wellpoint, and United Health Group. reported making $12.2 billion in 2009, up 56 percent from $4.4 billon the previous year.

In addition to the outrageous profits during the hardest economic times of our generation, these companies proceeded to drop insurance coverage for another 2.9 million Americans last year, adding to the overall number of uninsured Americans, which is approaching 50 million.

However, like so many other systemic problems that have arisen from lack of regulation, these top insurance companies have become so large they can jack up prices without fear of losing customers.

In addition to benefits from sheer size, the insurance industry is exempt from federal anti-trust laws meant to ensure that competitors do not work together to increase prices in a specific market. As a result, Americans are scrambling to pay for necessary health insurance as companies collectively increase prices to unreachable levels.

It seems the common misconception is that our health care system will be revamped to resemble a suburban DMV; we have some fear that going to the doctor will be like trying to renew a license behind an endless line of obnoxious 15 year olds waiting to get permits.

In reality, the experience of going to the doctor would remain exactly the same. The only difference with a reformed health care system would be who pays for the patient’s visit. Regardless of the size of a person’s paycheck in America, everyone would benefit from public option that forces runaway insurance companies to compete with stable and affordable government coverage.

— Katz is a junior from Overland Park in creative writing and political science.

Comments

Katz: Rein in insurance companies for health care reform

Get medical insurance for your entire family at the best price from http://bit.ly/atGzeD

Katz: Rein in insurance companies for health care reform

Re: the headline Please look up the difference between "reign" and "rein."

Katz: Rein in insurance companies for health care reform

It's not the amount an insurance company makes in revenue that matters, it's the percentage of that revenue that is profit. The health insurance industry as a whole makes about 3% profit. That's not much at all. Perhaps the price increases are elsewhere?

Also: Nobody is even considering a public option anymore. Why are we writing articles about this?

Katz: Rein in insurance companies for health care reform

Insurance companies only make a small profit on their coverage. However, drug companies, doctors, law suits against doctors and the general poor health of American's drive up costs far more.

Any overhaul will create government commissions to set maximum rates for health insurance companies. Out goes any incentive to keep prices low, companies will simply raise prices to the maximum limit while increasing all efforts to lobby raising that maximum go even higher. Meanwhile, forcing insurance companies not to drop patients and provide heath care to people who have continually made poor decisions regarding their health will drive costs for the companies through the roof. Anything in government control is in the hands of lobbyists and special interests.

If you think prices are high now, wait until health insurance is free.

But, something must be done to help reduce costs. The author of the above piece is correct, we are spending far too much on our health care per capita than we should. How do we do it? Make insurance a free-for-all. Allow any one form any state to access any health insurance plan. Create government incentives to live healthier lifestyles. It is simply moronic to punish the Americans who are making money and innovating the world as we know it (insurance companies, drug companies, doctors) while simultaneously encouraging and enabling Americans who drive up costs by living incredibly unhealthy lifestyles and filing frivolous law suits against doctors simply seeking settlements.

Katz: Rein in insurance companies for health care reform

this is the second time this kid has written an article completely void of context and fact. Stop the madness

Katz: Rein in insurance companies for health care reform

The response is correct; the insurance has a profit margin of about 3%. Compare to Microsoft of 11%. Billions and billions of dollars begats billions of dollars of profit but only 3%. Isn't everyone required to study at least one class of math in this school? Yes, the US (and that means the people and the insurance carriers) spend a greater percentage than other countries and in return we get the best health in the world. Read stories of health care rationing in England and Canada and strange regulations that deny healthcare to their citizens. Anyone can go to an emergency and recieve medical aid, ANYONE! This may surprise someone who is young but some people don't think they need health insurance at 20 years old. The Obama plan demands that everyone buy health insurance and if you refuse then you will be penalized with a fine. Smells like oppression to me with a faint touch of Stalinism. Check out Cath Sunstein's comments. He said that government owns the rights to ANYONES organs if they are needed for someone more deserving. Even if they are not dead, critically injuried, or terminal. Do you really want someone like that in charge of your welfare? Read some science fiction (this is what people write and read when they can't write political philosophy) and you will see the future of organ jackers, body merchants, and genocide. You laugh??? The progressive movement supported eugenics and forced sterilization in the 1920s and 30s. Check out the book written by the creater of Planned Parenthood Margaret Sanger. She called it "The Negro Project" and she wrote in 1906. She planned to eliminate Afro-Americans by means of abortion. She planned to enlist the ministers of the Afro-centrist churches. Afro-Americans make up 16% of the population and yet represent over 40% of abortions in the US. The genocide is on going.

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