It’s all got to do with shifts in the economy. Even before the recession hit, employer-sponsored health coverage had been steadily shrinking, and many people couldn’t afford the premiums for individual policies. Meanwhile, government programs have been expanding — and they’ve gotten increasingly friendly to private insurance companies. Insurers now play major roles as middlemen in Medicare, Medicaid and the children’s insurance program.
And if the government requires everybody to get coverage — just what the overhaul legislation calls for — it could guarantee a steady stream of customers subsidized by taxpayers not only for insurers, but for all medical providers.
Let’s see, private insurance is shrinking as government programs expand. This is EXACTLY waht happens with government intervention. It pushes out private firms. Period. By the way, that’s not a bug, it’s a feature, for leviathan at least.
And the private firms are getting increasingly friendly to government. Well that should come as no surprise, neither that they are unhappy with the forced stream of “customers”. This is called rent seeking.
Ever wonder why health care is in such need of “reform”? It is because the more government involves itself into this, or any market, the more distorted it becomes.
This is most surely a causal effect.
So, what do our overlords have in store?
The House version, modeled on Medicare, would pay doctors and hospitals less than private insurance.
That’s going to work out perfect. Because, as we all know, medicare is such a wonderful program. This is how you kill health care, or any other market. Just get government involved.