Good day, family and friends!
Today, we look at the ugliest of the three Cost Sisters...special interest legislation.
I call special interest legislation the ugliest of the three sisters because it is rooted in one of the most morally repugnant actions known to man...betrayal of trust. We the People elect individuals to represent us at all levels of government with the hope that they will do the right thing, protect our God-given Rights, and uphold the law of the land. Yet, time and time again, once they are in office they bend (if not break) the truth, sacrifice their principles, and sell out to the various lobbyists and special interest groups; all the while justifying their actions by declaring, "that's just the way the business of government works. You have to compromise in order to get things done down the road." I believe this to be a contemptible lie.
What does this have to do with the affordability of healthcare? Ask yourself these questions: if there are over 1300 insurance companies and underwriters in the United States offering healthcare coverage, then why in some states are the citizens' choices limited to as few as 4 of those companies? Why are corporations forced to offer different insurance options to their employees, based on the state in which they work? Why is it that a self-employed individual in Texas can get medical insurance for a family of 4 for less than $400 per month, while the same coverage in South Carolina costs over $1400? The answer...special interest groups and lobbyists.
Unfortunately, many of the states' legislatures have given in to the seduction of easy campaign donations and feel-good photo ops. They create laws and regulations that severely limit competition and provide a protected market to a handful of insurance companies. Because of this, the insurance companies in those states have no incentive to streamline their operations and improve their efficiency in order to reduce prices. Not only that, but in many of those cases, requests for rate hikes by the protected companies are given 'rubber stamp approval' by the very officials tasked with protecting the public from inequitable business practices.
One of the most egregious examples of this problem is the state of California. The citizens of California have been saddled with the highest medical insurance premiums in the United States, yet they are only allowed to choose from 4 carriers. At every opportunity, California's state legislature has overwhelmingly blocked attempts to introduce competition into the medical insurance industry.
Another blatant example of special interest protectionism and governmental control happened in New York. In 2008, Dr. John Muney started offering a new program to his patients: $79 per month for unlimited doctor's appointments. He believed that if he could reduce the mounds of paperwork created by health insurance, he could cut his costs and ensure that healthcare was within reach for everyone. It wasn't long before the New York State Insurance Department swooped down and told Dr. Muney that he had to stop offering his low-cost flat-fee program because it was a form of insurance and he was not licensed to sell insurance in the state of New York. It seems that, at least in the state of New York, the only way for a doctor to avoid the hassles of insurance is for that doctor to start his or her own insurance company.
Basically, while your political heroes line their pockets and solidify their power base, you end up paying more every year for medical insurance. They have betrayed the trust their constituents placed in them in favor of catering to special interest for their own personal benefit.
Next time, I summarize the problems I've identified in this series and start looking at the solution.
Until then, best regards...
© James P. Rice 2010
Right on my friend.
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