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  • Obamacare: The Marriage of Big Government and Big Insurance

    The Examiner’s Tim Carney had a fine op-ed last week warning conservatives not to trust health insurance companies on health care:

    Insurance companies lobby for big-government regulations, subsidies, mandates, and tax-code distortions that funnel them money, keep out competition, and stultify innovation. These policies preserve the employer-based health-care system that mocks the idea of free-market competition. Then they cry “unfair competition” when government threatens to encroach on their government-protected monopolies.

    But they’re not just lobbying against a government option. Today, health insurers are lobbying to force you and me to buy their product or face a tax hike (the individual mandate). They are lobbying to force entrepreneurs to buy insurance for employees (the employer mandate). They are lobbying for more subsidies paid for by us taxpayers. In short, they are lobbying against regular people and against the free market.

    Carney is dead on. As we have noted before, in many ways Obamcare is just another bailout of a politically connected but struggling industry. The Los Angeles Times reported earlier this year:

    The industry’s real trouble begins in 2011, when 79 million baby boomers begin turning 65. Health insurers stand to lose a huge slice of their commercially insured enrollment (estimated at 162 million to 172 million people) over the next two decades to Medicare, the government-funded health insurance program for seniors.

    “The rate of aging far and away exceeds the birth rate,” said Sheryl Skolnick, a CRT Capital Group healthcare investment analyst.

    Columbia University Mailman School of Public Health, Health Policy and Management Department Chair Sherry Glied explained what is really going on in New England Journal of Medicine:

    The relative invisibility of the mandate ’tax’ may make it easier for special interests to achieve their goals. The mandate, then, would become a means through which special interests use government to force transfers of funds from consumers to the health care sector.

    If we as a nation are already spending too much money on health care, then why is the government forcing Americans to spend even more?

    Posted in Obamacare [slideshow_deploy]

    10 Responses to Obamacare: The Marriage of Big Government and Big Insurance

    1. hoads says:

      I think it goes deeper than this post describes. I believe government and health insurers in fact, share a cozy relationship that has been obfuscated within this healthcare debate. Government needs the tools that health insurers have developed over the years to administer its underwriting and claims administration. Health insurers needs government to stick its neck out for "comparative effectiveness" that will establish unprecedented government control of medical care –especially life saving/extending expensive medical care. It's a win win for both at the expense of doctors and patients.

    2. Pingback: » Financial News Update - 08/17/09 NoisyRoom.net: Where liberty dwells, there is my country…

    3. Cherryone, CA.. says:

      In most cases it is "follow the money" in Obama's case it is all about his power over all of us..

      and over the US Constitution..It will change everything..with will be stuck with Obamacare for

      decades..Other countries have not been able to get rid of National Health Care..I don't want it,

      do you???

    4. Lloyd Scallan - New says:

      We have a new kid on the block. This new kid is a bunch of special interest groups (AMA, insurance companies, drug compainies, hospitals, etc.) entitled "Americans for Stable Quality Care". Keep a close eye on this bunch. They have already committed $12 million to produce false TV ads

      to support Obama's health take-over. These groups have been bought and paid for by the same socialist that pull the strings in the White House. The don't have a wed-site or address, thus no one can contact them to counter their lies.

      Hu, sounds like Democrat congressmen and town halls.

    5. Jeanne Stotler, wood says:

      INsurance companies saw $$ and exploited it, now our Goverment saees $$ and is using the Insuance companies to help them exploit the citizens of this country. We have an arragaunt Pres. who never has been satisfied with his currant job. He started as a Ward healer in Chicago ( Need I say MOB)then decided to run for State sen. while holding that job, as aState Sen. he decided that was no enough so he ran for US Sen while serving the State (Cannot serve 2 masters) No sooner was he sworn in the US Sen he started running for Pres. (Who took care of his senatorial duties??) Now as President he is flitting from place to place (WE are paying for this) he is running for re-election, what next??

    6. Andrew Buckland, Nor says:

      "If we as a nation are already spending too much money on health care, then why is the government forcing Americans to spend even more?"

      Because, as Joe says, "we have to spend more"[everything you can beg, borrow, and steal] "to keep from going bankrupt"

    7. tk hawaii says:

      I just started reading a book confession of RX pusher,by gwen owens.this book talks about government and big pharmcutical companies, and how pharnmacutical companies are in the governments back pocket with lobbist,and how there hasn't been any new ingredinets for new drugs past 10 yrs.This book also explains the down side of government control of drug therapy.this is must read for people who think goverment control health control could work.

    8. Terri from Ok says:

      AARP is an insurance company. That is the bulk of their business. And we must also count the $300,000,000+ taxpayer funding they received last year.

      Look at all endorsing groups closely….they are parasites.

    9. John Roane Sarasota says:

      Now we even have AARP expanding their insurance business. When will seniors learn its all about the money now? They should call AARP and drop out.

    10. Lynn B. DeSpain says:

      Our Declaration of Independence, our Bill of Rights and our Constitution and its Amemdments denies the right of the Federal Government to "marry" with any Private Enterprise! The President, his Cabinet and the House and Senate seem to have forgotten their oathes to uphold these Documents of our Nation, for their own self interest, whatever they may be. They certainly have gone way past the boundaries set forth in the Laws containing the powers of the Federal Government, and Impeachement and Recall are part of our legal options and rights to demand.


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