Health Insurance Competition

Congress thinks it can improve the problem of a partial monopoly by turning it into a total monopoly. That’s what single-payer health care is: “Single payer” means “single provider.”

In the U.S., where a federal law allows states to ban interstate commerce in health insurance.

U.S. health insurance companies are often imperious, unresponsive consumer hellholes because they’re a partial monopoly, protected from competition by government regulation. In some states, one big insurer will control 80 percent of the market

National health care will “increase competition and keep insurance companies honest” — as President Barack Obama has said.

Government-provided health care isn’t a competitor; it’s a monopoly product paid for by the taxpayer. Consumers may be able to “choose” whether they take the service — at least at first — but every single one of us will be forced to buy it, under penalty of prison for tax evasion.

Obama himself compared national health care to the post office

But what most people don’t know competing with the post office is prohibited by law.

Expect the same with national health care.

Obama denounced the insurance companies in the New York Times, saying: “A man lost his health coverage in the middle of chemotherapy because the insurance company discovered that he had gallstones, which he hadn’t known about when he applied for his policy. Because his treatment was delayed, he died.”

Maybe that and the cancer.

In a free market, such an insurance company couldn’t stay in business.

The reason competition does not exist in the health insurance industry can be summed up with two statements:

1. After World War II, Congress codified employer-based health benefits through the tax code. This was done to benefit the labor unions.

2. The insurance companies had their markets protected through a law known as ERISA (also passed by Congress), which does not allow insurance products to be sold across state lines.

The result is that there is a lack of choice by the people that use health insurance. Giving the control to choose to the government is no choice at all. True choice and true competition in the health insurance market will come when the above two items are corrected.

All private insurance will be forced to become identical to the government option in 5 years per HR 3200, so choice and competition will be removed completely. Then what do you do if the government won’t approve the medications?

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