LESSONS IN LOGIC: Health Insurance Companies Not Totally Victims Here

Have you heard the stories about how Obamacare mandates that men must be covered for maternity care and post-menopausal women must have birth control?  Have you heard the health insurance companies claiming that this is partially responsible for the spikes in insurance rates?  Well, I don’t want to sound like I am trying to beat-up on the insurance companies here because I am a business owner, myself.  However, if I am going to call government out when it lies, then I am going to point the same finger of logic at the private sector when it tells stories.  It’s the only way I know how to be.

So, why would I say the insurance companies are lying about Obamacare mandating coverage that is causing the rates to go increase?  What proof do I have?  I have logic and an understanding of right and wrong.  That’s really all you need to know the insurance companies are lying about these issues.  Now, let me walk you through it and see whether or not you agree.

If I am the insurance company and Obama tells me that I must sell you a policy that covers you for getting pregnant or needing birth control when you cannot get pregnant, what should I do?  If I raise my rates, then I am guilty of everything the Left accuses business of being – unscrupulous business practices driven by greed.  You see, I am supposed to be an insurance company, and insurance is driven by risk.  So, if you are a male and Obama tells me I must cover you for pregnancy, I calculate the risk of you getting pregnant – 0% — and I adjust your rate accordingly.  That means – if I am honest – your rate goes up by $0.  The same applies for Obama’s dictate that I must give birth control to women who are past menopause.  This is how insurance is supposed to work, and this is why I know the insurance companies are not being honest about their rate increases.

Here’s something else that should be jumping out at us.  Again, these are supposed to be insurance companies, and insurance is supposed to be based on risk in relation to the total pool of participants.  Since Obama – in theory – has mandated that everyone is going to have to have coverage, then that pool is all of America.  This means that the people who have existing conditions who – whether Obama will admit to this or not – have pretty much been getting treated by the ER’s in this country already have their health care costs factored in to the current rate of expenses.  This is why health care for the healthy has been so expensive: the insurance companies had to cover the cost of government mandates that allowed the uninsured to get treated through the ER.  So, while total expenses will no doubt go up, they will not go up anywhere near as much as people are trying to make us believe.

Next, the cost of the average deductable is going way up.  This means the pay out on the part of the insurance companies will be cut by the increase in these deductibles.  In some cases, this is thousands of dollars per household.  What’s more, many of the insurance plans Obama has mandated no longer allow you to go to the top facilities in this country, which further cuts the cost of care.  And then there are the federal panels – the death boards – which will be limiting how much is spent on each patient according to their cost of care vs. their benefit to society.  Yes, that is part of Obamacare and they have been admitting to it – now that they know we can’t do anything about it.

So we have all these cost-cutting benefits of Obamacare, and they are real.  Now, add the money from the millions of people who previously did not pay into the system but will now be forced to do so and you have a great deal more money coming in to the insurance companies.  At this point, you need to ask yourself a simple question: if you have had all these expenses cut and all this additional revenue added, exactly where are the factors driving these new rate increases?

Mind you, I am fully aware that Obama is using Obamacare to re-distribute wealth.  I got that loud and clear.  However, if the insurance companies are trying to tell us that they somehow arrived at risk calculations that include all of these factors and the result is that rates must go up as high as they claim, then there is all the proof we need to cancel all health care insurance as they will have just proven that it is impossible to adequately operate a health insurance industry in this nation.  Remember, it is not about actual cost at this point: just the calculations based on what is supposed to be 100% participation by the American population.  If that is the case, then – as someone who was once in the automobile insurance industry – I do not understand how the increased rates are being justified.

My conclusion: there is much, much more to Obamacare than we are even aware of yet, and with the government involved, we can be absolutely certain it spells trouble for those who would prefer to retain their individual rights and liberty.  At the same time, I am equally convinced that the insurance companies saw what they thought was a chance to force millions more health customers into the pool.  In this case, yes, I believe their greed blinded them to the danger of dealing with a government that no longer feels obligated to its corporate sponsors/partners.  Tyranny already has this nation in its grasp and now the reach of its tentacles is starting to grow.  It is only a matter of time before evil’s shadow covers the last rays of liberty’s light in the land of the free…and that is because we are no longer the home of the brave.