June 08, 2009
In Praise of Efficient Markets, Especially in Health Care

At least we’re finally getting to the core of the argument about health care.

In a nutshell, the question is whether insurance companies should be allowed to continue their bloodsucking ways, insulated from market forces; or whether their high-paid execs should be given that free market they claim to want, competing against a so-called public option similar to Medicare.

Medicare is clearly cheaper and provides better outcomes, which is why the health-care industry, so called, is against it.

…critics argue that with low administrative costs and no need to produce profits, a public plan will start with an unfair pricing advantage. They say that if a public plan is allowed to pay doctors and hospitals at levels comparable to Medicare’s, which are substantially below commercial insurance rates, it could set premiums so low it would quickly consume the market.

Although the numbers are disputed by public plan advocates, the Lewin Group, a health care consulting firm, recently projected that a plan paying Medicare rates would prompt 119 million of the 172 million people who are privately insured to switch policies (while also providing coverage to 28 million of the 46 million uninsured).

Makes sense, if you consider it. A public, or single-payer, plan would have less overhead and therefore be cheaper. Any idiot can see that, even an insurance-company executive. Then there’s the negotiating leverage, currently firmly in the grasp of execs from the drug and health-care companies, that would naturally end up in the hands of consumers. Namely, you and me.

It’s so unfair, so contrary to the basic philosophy of capitalism, to start with a pricing advantage arising from superior efficiency and reduced need for profit! It’s cheating, really; you can see why true capitalists want to be insulated from such practices.

Capitalism, to paraphrase Prudhon, is theft. The sooner we realize that money is holding up the advance of civilization, the sooner we grow up and reach for the stars. Universal health care should be a basic human right: if you exist, you get health care. And food, clothing, housing, education, and transportation. We could do all that now if we chose, but we don’t because it wouldn’t serve to concentrate wealth.

Sunset all corporations; force those whose aspirations require a large gap between themselves and others to declare that fact publicly. After all, markets are most efficient when most fully informed.

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Posted by Chuck Dupree at June 08, 2009 04:59 AM
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Right on! I can't believe the expensive TV ads I'm seeing that claim that even having an option for a public plan will cause Americans to lose their freedom of choice in health care. Sure, the freedom to choose which bloodsucking corporation is going to take too much of your money and cover too little of your health care needs - some choice.

I frankly don't see how we can make any progress in this country until we pass a Constitutional amendment making it perfectly clear that corporations have no rights whatever. Then we can tell them when they can speak and when to shut up and we can ban them utterly and completely from our political process. Fat chance of that.

Posted by: Charles on June 8, 2009 8:57 AM

Proudhon was right, and private for-profit corporations are a blight.

Posted by: Mike Goldman on June 8, 2009 12:24 PM

I had insurance, I thought I was in good shape, until I got sick. I found my insurance company disallowing simple things you would think any human being would have a right to, like pain meds; never mind the other stuff. They are killing us one at a time - all the time pulling the wool over everyone's eyes with their advertising, control of "our" representatives and a MSM who is complicit up to their eye balls in the big fraud.

Healthcare (basic) ought to be a human right ( as it is in most other industrialized countries) not a privilege for the most financially successful in our capitalist system. Just because you think you've got it don't be deceived, if it isn't a basic right for everyone, things can always change and you can find yourself in a not so privileged position due to illness, catastrophe, or fraud that has wiped out so many fortunes. If you've got it, use your influence to insure that you can't lose it by making it a basic human right, only then can you be assured that you won't lose it.

Posted by: knowdoubt on June 8, 2009 4:52 PM

I hope that all of these reports of re-education camps set up by Homeland Security are for real because the insurance company executives are going to need them if this goes down as I believe it is going to. They will come in handy for these insurance guys to protect them from the wrath of 16 million people. Sure hope they were designed to keep people out as well as in.

Posted by: lahru on June 8, 2009 7:00 PM
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