Tuesday, July 28, 2009

A Secret Plan

It seems some Senators have been meeting in secret to come up with a plan to destroy the insurance companies. Or raise the cost of insurance. Or both.

the proposal under discussion by six members on the Senate Finance Committee would bar insurance companies from denying coverage to any applicant. Nor could insurers charge higher premiums on the basis of pre-existing medical conditions.
Now exactly how are the insurance companies going to pay for the privilege of taking on a bunch of people who are already sick? It throws all their actuarial calculations out the window.

Coming next - a bail out of favored insurance companies.

OTOH this could be a ploy to raise campaign "donations" from insurance companies. They will have to "donate" in self defense.

The other possibility is that the senators are insane.

Which brings up Simon's Law:

It is unwise to attribute to malice alone that which can be attributed to malice and stupidity.

4 comments:

Neil said...

I believe the idea is that "encouraging" young, healthy people to pay for insurance they don't need will pay the freight for the uninsurable.

Might work--I dunno. That's what makes employer-based "group" insurance work. The devil's in the details on these sorts of things, and I would be looking more at government control of insurance prices than "shall-issue" insurance policies.

simentt said...

This is so cool - you're getting a socialist state- insurance-system, without having the populist state to give it a minimum of direction.

Effectively, you're bypassing the last 70 years of social-democracy, and going right back to the progressive and roaring 30s where central Europe really got going.

Do you think there will be uniforms?

-S

M. Simon said...

Do you think there will be uniforms?

Only if you join the Party.

Ron said...

I just came across a Mark Twain quote that I had not seen before: "Whiskey is carried into committee rooms in demijohns and carried out in demagogues." How many jugs did this particular Senate Finance Committee manage to polish off?