I watched the Anthony Weiner / Joe Scarborough discussion from a few days ago and agreed 100% with Mr. Weiner but felt he did not do a good job of combatting Joe Scarborough's responses. To a conservative's ear, it did sound as if the congressman was making a case for government-run markets and subverting the free market system.
Joe Scarborough did not understand the point being made. Mr. Weiner asked three times "what service do insurance companies render?" and three times Joe said "I don't even understand the question - are you advocating eliminating insurance companies and replacing them with Medicare?" To Scarborough, this means replacing the free market with a big government program. The second part is true (expanding government role in health care) but the base assumption that insurance companies operate under free market principles is false.
A broken leg or a heart attack are not consumer oriented options to begin with. I can hold off on buying a new car. If I decide to buy a new car, I can spend my time researching and negotiating for the best deal. Medical decisions are not the same thing.
But let's say General Motors can run its business like insurance company. How would that work?
Customer #1 buys a Cadillac. GM manufactures the Cadillac, delivers it, and asks the customer for $50. After all, customer #1 has been paying car premiums all along so just needs a co-pay of $50 when an actual car is needed.
Customer #2 likewise has "car coverage" and comes in to buy a Cadillac, so pays $50 and walks out with a new car. But two weeks later, customer #2 receives a letter that the car will actually cost $50,000, not fifty dollars. You see, customer #2 had acne as a teenager and did not disclose this pre-existing condition when applying for car coverage.
Customer #3 buys a Cadillac, but with a different car coverage plan, ends up with a 1982 Ford Fiesta. The good news is that 80% of the cost is covered. The bill is still valued at the Cadillac rate, so the 20% that customer #3 gets billed is $10,000.
Customer #1 wrecks his Cadillac and gets a new one for $50.
Customer #4 has no car coverage. He cannot buy a Cadillac at all, so he walks to work. Customer #1 accidentally runs into Customer #4 on his way to work. Customer #1 buys another new Cadillac for $50 and Customer #4 dies.
Customer #5 has no car coverage, but determined to avoid the fate of #4, buys a car anyway. GM bills #5 the full rate, which has been artificially inflated to provide room for all the discounts #1 enjoys. #5 is billed the top rate for the Cadillac, $500,000, and ends up filing for bankruptcy.
Customer #1, obviously, is a U.S. Senator, and has gold-plated, tax-payer-funded car coverage - provided by the government!
Everyone else - not so lucky!