So, a bit of background and personal Information here. I suffer from depression and a few other things and as such my pre-existing conditions make me expensive to impossible to insure. I apply from time to time to get a lower rate because my current plan is very very expensive.
I got a letter from my insurance company telling me they will be participating in my states health care exchange system. I don’t like single payer systems. I don’t like government (State or federal) involvement in health care because it is the prime reason my costs are so high. Government is costing me a fortune each month. But now obamacare seems to be offering me a reduction in price. But at what cost?
A business sets a price for their good or service with 2 things in mind. Cost of production and the ability of customers to pay. There is no purpose in selling something at a price customers wont pay, nor is there any purpose in selling something at a price below cost. Business that does that goes out of business. So using that knowledge, the insurance company thinks I might cost them X amount in the future so they charge me Y per month so they can meet that X. If Y is forced down by government rules, then X can’t be met, the insurance company goes under and I lose my insurance.
I guess we can think about it like this. Government ordered a pizza that costs twenty dollars but demands that it be priced at ten. The result is every pizza sold will cost the company ten dollars. They go away, unless the government offers them a pizza subsidy to make up the difference. But with that subsidy comes an obligation to do as the government demands. Henry Ford noted that the government, which didn’t produce cars, was telling car makers what to do. What gives them the knowledge to set these rules for any of us.
And yet, the price reduction will save my ass in the short run, only to hurt me in the long run. Here is how I think I justify this. The savings I achieve here can be applied to my future development making me better off in the end. But what of my insurance company? I don’t know.
All I know is obamacare and other government interference has driven up the cost of healthcare and then arbitrarily drives down the price (not the cost) making life hell for the already struggling insurance companies.
I don’t know how to figure this one out…