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Jason Rosenbaum

Working Families

Josh Marshall gets it right: Insurers just don’t want competition

Mon. Jun. 29, 05:50pm EST

As usual:

This won’t come as the slightest surprise to those versed in health care policy issues. But I fear it’s only barely permeated the health care reform debate in the country, certainly in Washington. And that’s this: the opposition to a so-called ‘public option’ comes almost entirely from insurance companies who have developed monopolies or near monopolies in particular geographic areas. And they don’t want competition.

Note, I’m not saying more competition. I’m saying any competition at all. As Zack Roth explains in this new piece 94% of the health care insurance market is now under monopoly or near-monopoly conditions — the official term of art is ‘highly concentrated’. In other words, there’s no mystery why insurance costs keep going up even as the suck quotient rises precipitously. Because in most areas there’s little or no actual competition.

That’s exactly right. As President Obama pointed out last week, the arguments used by the industry and by conservatives are illogical at best and dishonest at worst:

If private insurers say that the marketplace provides the best quality health care; if they tell us that they’re offering a good deal, then why is it that the government, which they say can’t run anything, suddenly is going to drive them out of business? That’s not logical.

They’re not against the public plan because it would be bad for you and me, they just don’t want the competition. Pretty self-serving, no?

(also posted at the NOW! blog)

original post on The Seminal :: Independent Media And Politics, Mon. Jun. 29, 05:16pm EST
Comments
Joshua Boulée Tue. Jun. 30, 12:03am EST#1

like they're supposed to like the idea of trying to compete with a subsidized system that doesn't have to make a profit!

Mike Davis Tue. Jun. 30, 12:38am EST#2

Josh's is right .......they can't compete with government and they know it......no one can !

David Shockey Tue. Jun. 30, 02:00pm EST#3

Obama's statement only sounds good to the ignorant and self-deluded. To any objective thinking person it is utter garbage.

Andrew Tuttle Wed. Jul. 01, 04:46pm EST#4

Here's a brief quote from Shawn Olson's article on the subject:

"Health insurance companies are scams too because they put it into everyone’s mind that we are entitled to living past one hundred years old; they also increase the cost of health care because of the plans that pass covered patients’ bills onto insurance companies… allowing hospitals to charge extortionately higher for medications that would otherwise cost much less. One manual on reducing hospital costs stated “Hospital costs for medications are notoriously high.” One of the recommendations offered (buying these medications with insurance plans) displays the mental block that Americans have with this issue—they assume that they are getting the medications cheaper because of insurance when in reality the practice allows pharmaceutical companies and hospitals to raise the cost of medications and treatments… a cost that is passed back to the insurance companies and then right back into the consumer’s lap."

It would be hard enough for insurance scammers... oops, I'm sure I meant "companies"... to stand up against a competitor who also regulates the industry, but they could never take the competitive pressure of the free market.

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