Kathleen Sebelius, Secretary of Health and Human Services, actually said this today: “Year after year, insurance company profits soar, while Americans pay more for less health care coverage,” said Secretary Sebelius.
Profits soar. Another useful myth to sell government-run lives, er, I mean, government-run health care. Yes, there are for-profit insurance companies and by definition, they need to make a profit. But the plethora of “non-profit” insurance plans lays bare the administration’s ongoing obfuscation on the issue of insurance premiums.
Minnesota, like most states, relies on a handful of huge non-profit insurance companies. And many states already regulate insurance premiums. The imposition of the federal will on local insurance commissioners only makes the process more complicated and expensive, ergo, premiums will increase as a result.
But here is the greatest lie, and why the new federal law will utterly fail, at least to hold down health care prices: “The Affordable Care Act is bringing unprecedented transparency and oversight to insurance premiums to help reign in the kind of excessive and unreasonable rate increases that have made insurance unaffordable for so many families.” What baloney.
Think about it. Health insurance companies collect premiums to do what? Premiums pay insurance claims. Insurance claims drive premiums. Claims come from whom? People that use medical services and purchase medicines and medical products.
Insurance companies aggregate funds from premiums to pay claims and yes, to pay their overhead expenses (which, by the way, are a fraction of government overhead expenses – but more on that elsewhere).
The best solution to reduce health insurance premiums is for individuals to use fewer services. Really. And it does not take a fortune invested in wellness or preventive care to do so. This is why consumer-directed health care is the key to reducing insurance cost. But not for this Administration or the outgoing, defeated Congress. No no. Their solution is imposed cost control.
This idea that the federal DHHS can force health insurance companies to restrain themselves is a little like setting a federal cap on the price of a gallon of gasoline. Never mind that Americans keep no buying gas, because to the government-planners, demand makes no difference. Rather, to reduce the cost of gas, “the Affordable Gasoline Act will bring unprecedented transparency and oversight to gasoline prices by reigning in the excessive oil company profits.” Oh, and never mind that finding a functioning gas station will become more elusive. The best way to hold down gasoline prices is to use less.
Get ready for a spate of public fights over rate request denials, and soon after, the shuttering of hundreds of health insurance companies. Then be prepared for the federal Health Payment System Bureau that will eventually oversee the five national insurance utilities that will survive ( and will own Congress).
I couldn't agree more, there isn't any magic in the health care and/or insurance industry. People pay premiums for the insurance companies to manage their health care costs. I might add that the same goes for the hospitals. The topper is that I think that there are many unnecessary procedures and tests used to mitigate potential lawsuits by overly aggressive lawyers are also largely to be blamed for much of the costs.
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