Obama allies: Now we can stop pretending the insurers are the enemy

Washington Examiner ^ | 3-31-2010 | Timothy P. Carney

[Whenifhow]

Do you remember how the Democrats framed the health-care “reform” fight as a battle against the insurance industry and its allies?

Obama said the bill represented “standing up to the special interests.” Democratic House members attacked “reform” opponents regularly with statements like “We can either stand with the American people or with the insurance companies.” Majority Leader Harry Reid put it this way: “It’s about whether you will fight for insurance company profits, or for families’ peace of mind.” You could easily come up with dozens of similar examples with five minutes of searching the Web.

Snip

Now, that same CAP blogger, Igor Volsky, says it’s time to drop the charade:

Insurers never opposed the new regulations as long as lawmakers understood that covering children with pre-existing conditions would increase premiums….

[T]he administration wa right to criticize insurers in an effort build political momentum for passing health care reform. But now that reform is reality, lawmakers will have to turn to work with the industry to enact the measure......

[ClearCase_guy]

As I see it, small insurance firms will suffer and go under. Big insurance firms will gobble them up, get 30M new customers, and get federal money to make it all work. It will work out well for them -- and they knew that months ago.

Fascist economics -- the government helps the businesses that can help the government. It's all about control.

[GUNGAGALUNGA]

I have said this from day 1. Democrats love insurance companies. Right Chriss Dodd? Connecticut...Insurance capital of the world.

[Oratam]

What was it Hyman Roth told Michael in The Godfather, Part 2? Oh, yeah. It was:

"Here we are, protected, free to make our profits . . . in partnership with a friendly government."

[throwback]

Yep. Just like the banks. They whip them, and then hand them cash. They enable the worst offenders to survive and then complain about them.

[Mr. Mojo]

Obama allies: Now we can stop pretending the insurers are the enemy

That's how libs operate, artificially pitting "average Americans" vs. ..."the rich"..."big Pharma...."big Insurance...."Wall St." ..."special interests."

They make their livings playing the class warfare and race cards. It's all they have.

[andy58-in-nh]

The large insurance carriers are being duped as well, at least those in their management who never truly studied insurance theory and got their jobs via the prestige college MBA route. (I refer to them as "The Illegitimati", but that's another story...) The key idea to understand is that the Obamacare plan virtually forbids the use of actuarial science as a primary tool of risk management.

By forcing health insurance companies to accept customers with pre-existing conditions and regardless of their ability to pay premiums, stable pricing becomes a mathematical impossibility. The effect of the legislation will be to increase demand for a service without a commensurate increase in its supply resulting in higher expenses and thus, higher premiums. If premiums are artificially suppressed by government fiat, the result will be scarcity; i.e.- rationing.

The laws of economics are not subject to repeal by either human will or government fiat, no matter what good or service is involved. The government does not care because its aim is not service or efficiency, but power, and the big insurers do not care because they have been bought off by promises of Federal subsidies and golden parachutes.

We can argue about whether this is Fascism or socialism, but the end result will be essentially the same: no choice and no competition.

[PogySailor]

Fascist economics -- the government helps the businesses that can help the government. It's all about control.

Bingo...

[eleni121]

It is simply moving jobs from the private sector to the public. Nothing about this sham improves health outcomes... and in fact, will probably do more to worsen it.

[elpadre]

time to go begging for campaign funds, doncha know!!!

[MrB]

So, who’s going to be the next

Emanuel Goldstein

that leftist sheep are going to dutifully hate
when told to do so?

[chris37]

They never were the enemy, Ibama, you are.

[screaminsunshine]

Now is the time to become IRS and Lawsuit proof.

[Brad from Tennessee]

I agree with you. Ultimately there might be 5 or 6 large companies left. These will have to be underwritten by the government and subsidized because capital will move into other sectors and markets. Finally what’s left will be federal bureaucracies with corporate logos.

I think the insurers calculated that a public battle would feed the Democrat line that insurers were bad guys and win votes for a public option. This could have caused investor panic and huge financial damage before existing premiums and obligations expired.

[mvpel]

As I see it, small insurance firms will suffer and go under. Big insurance firms will gobble them up, get 30M new customers, and get federal money to make it all work. It will work out well for them -- and they knew that months ago.

Think Orren Boyle of Associated Steel. Ayn Rand had these guys pegged over 50 years ago. Big companies and big government, working hand in glove to enrich the insiders.