Obama, Our Fascist in Chief

Posted by Jason | Posted in Health Care | Posted on 22-02-2010

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You seriously have to laugh at the idiocy of our government officials. They simultaneously do things that drive up costs at the same time they try to cap costs. It’s like trying to squeeze the air out of one end of a balloon at the same time trying to keep it from going to the other end.

Seeking to revive his stalled health-care legislation, President Barack Obama is proposing a new idea to address health costs, giving the federal government authority to block insurers from making premium rate increases.

Sorry, one second. I’ll be right back…………

Ok, I didn’t think so. I was looking to see where in the Constitution it says the Federal government has any power to block private enterprises from raising their prices. Competition will prevent private enterprise from raising their prices above market prices. Oh, that’s right our government prevents competition between states.

The move raises the ante after two weeks of presidential bashing of rate increases including WellPoint Inc.’s decision to raise premiums for some California customers by as much as 39%. WellPoint has defended its price increase as unavoidable in light of rising health costs.

While I would hate to sound like a conspiracy nut, this huge rate hike sure comes at an opportune time for ObamaCare. I mean, if I wanted to help out Obama, I would probably do just this. This would make people just mad enough to say “Screw it. Let the government take over the industry. How can they justify a 39% increase.”

Meanwhile, once the health care theft bill is passed, the insurance companies have a huge increase of new customers who have no choice but to buy their crappy products. After all, the customers has a gun pointed at them.

Private insurance companies are now regulated by the states, which review proposed rate increases. Under the Obama proposal, the federal Department of Health and Human Services would gain the power to review and block premium increases.

via Obama in New Health Push to Block Insurers From Raising Premiums – WSJ.com.

Wow, I didn’t realize there was no federal regulation of the insurance industry. The Wall Street Journal really did break news this morning. Can we confirm this and burn all the papers in the federal registry?

States, like the rest of our government idiots, do tell insurance companies they have to provide coverage for all kinds of medical conditions even when the customer doesn’t want or need it. This does not help consumer. They are not getting something for nothing just because state governments tell insurance companies they have to provide certain coverages. The customer still has to pay for services they never wanted and do not need.

Then in order to make sure the citizen can’t avoid the idiotic ideas of their local states, the federal government steps in and makes sure you are trapped. They make sure you cannot buy insurance from across state lines. This is no different than how they trap us into the expensive drug market we have here in the US. Because we aren’t allowed to buy drugs from across the border, drug companies can charge whatever they want.

After all this anti-free market, anti-consumer, anti-freedom idiocy is put into place, you get demagogues like Obama saying the free market has failed. He must step in. The government must have the power to take over the private sector in order to save us. Meanwhile, the only saving we need is from our fascist government.

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Comments (4)

Excellent post. Just one thing, “Competition will prevent private enterprise from raising their prices above market prices.” Interesting, what competitive measure has prevented the private sector, including but not limited to the ones in the insurance and provider domains, to circumvent the cost increase? Oh wait, nothing has. The key word is “market prices.” Market sometimes, when its fruit is squeezed in the hand of very few (read: monopoly, in this case, in all fronts), it tends to lose its juiciness. I’m still waiting for the private sector to flair its sword of competitiveness and cut through costs. Yet they have ballooned the price every single year for the last 15 years.

They haven’t and they won’t because the underlying problem is that we seek more remedy without considering the cost in which the care is provided. An analogy would clear this statement; imagine you build a super computer of some sort, aimed for an average home user or business consumer but the cost of the production, service, and maintenance is above $100,000. It works marvel but if no one can afford it, what is the point? The same with the health care; we pretend the “market” is going to drive down the cost of drug, treatment, equipment, training of the medical professional, and so forth are “in the budget” of an average individual in this country. Well it is not–the math does not add up. The market has created the product but has failed to curtail the cost. On the other hand, since the health care commodity is something no one can “live” without, we see any invention, regardless of its mammoth cost, with any price tag as acceptable which feeds this giant wheel of oft-expensive health care.

On top of that, we have every layer of this health care stack, adding chunks of “profit” to the final product (justifiably so, it’s free market after all), from the pharmaceutical companies, equipment developers, insurances, medical professionals, and everyone else in the list. The end product is just way too expensive for anyone to digest. Perhaps we should be content with less of miracle cures and advances in technology because at this rate, no one can afford it in the first place except fewer of population. We’ll never going to get out of this death trap.

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Yuvit,

You are giving the perfect case against the government. The government is setting up quasi-monopolies in health insurance.

You cannot have a monopoly in the free market without government closing off the market for the monopoly. History is rife with examples where liberals blast monopolies who were created by government. See railroads.

Also, your example of the super computer is partly correct. That is how computers came into our daily lives. Now I can have a computer in each room, in my pocket and in my car.

Market prices always go down, because of competition. The computer field is the perfect example. We are always getting more and more for less and less. Notice the little government involvement in that industry. Well, for now anyway. They are trying.

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It would appear you have a fundamental misunderstanding of the free market. We do not have a free market when it comes to healthcare and health insurance. We have states which have massive regulations regarding minimum coverage levels in the plans they sell, and they allow you only to purchase from carriers in their state. Insurance companies pass that cost on. That means you pay for coverage you don’t need and can’t cost shop. That’s wasteful and inefficient. On top you have federal and state Medicare/Medicaid programs which further muddy the waters, shifting more costs to the private insurance market.

The point of insurance is to shift the cost burden of a high-cost, low probability event to someone else. That’s what you pay a premium for. You buy car insurance to insure you against an accident. You don’t buy insurance to cover oil changes or tire rotations. Why? Because those things have a 100% chance of happening, therefore buying insurance to shift the cost burden to someone else will just cause them to shift the cost right back to you and then some.

Here’s the deal with Market prices. If an entrepreneur builds a new medical device, it’s very expensive to sell. Only a few people can buy it. Over time, he’s going to exhaust the market for that product at that price, so he needs to find a way to make it cheaper to produce so he can sell it for less. As the price drops, his available customer base widens and he can sell to more. Look at the market for lasik eye surgery. It is the last bastion of the free market in care – at first it was very expensive (and risky too). In order to sell the surgery to more customers, they had to make the procedure more cost effective and less risky, otherwise they’d go out of business. They found a way and now it’s not nearly as expensive as it once was, and is far more effective and reliable.

One of the major shortfalls of cost in our healthcare system is because of insurance. When you have insurance, you can succumb to what’s known as “moral hazard”. Moral hazard occurs when a party insulated from risk may behave differently than it would behave if it were fully exposed to the risk. Since you have health insurance, you may go to the doctor more often because you can, and you don’t consider the cost of doing so… you justify this because you tell yourself “it’s why I bought insurance”.

Until we re-connect the purchaser of the care with the consumer of the care, we will not bring costs down. More insurance is the problem, not the solution, irregardless as to whether it’s public or private insurance.

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John,

Loving it. You are going to have to start posting blogs on here.

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