Monday, June 29, 2009


There are those who suggest a public health care option would eliminate competition. Frankly, if health insurance companies were in the business of competing to provide quality health care, it would be a good argument. Unfortunately, insurance companies are not in that business. They are in the business of competing for profits and profits come from providing selective health care. Selection is made at two points in the process. First, insurance companies seek to insure those least likely to need health care. Second, insurance companies have active profit protection programs based on claims denial. The more claims for health care they can deny, the more profitable they are. Health insurance companies see no value in providing health care where it's needed. Only the people who pay the premiums see value there.

Interestingly enough, the same people who claim that a public option would kill competition also claim that the government is incapable of providing effective and efficient health care coverage. If that's true, then what are they worried about. the current system of competition will certainly out-compete an ineffective, inefficient government supported system. No one will take the government sponsored health care option ... right?

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