Word is that some progress may have been paid as far as crafting a compromise version of ObamaCare between hardcore liberals and Blue Dog Democrats. Some big parts of ObamaCare have been ripped out, but there was so much wrong with this bill that even with major components ripped out, there’s still alot wrong with it.
As evidence of that, in reading about the compromise I noticed something I hadn’t previously. Well I had consciously known of it previously but I hadn’t quite connected the dots until just now.
Like bills drafted by Democrats, 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.
So basically if you’re sick, you can get insurance regardless of what your illness is, and they can’t charge you more. So essentially healthy people are having to pay higher premiums than non-healthy people. You young people are getting put to the flame to pay for the elderly, I imagine that’s going to be a problem for many young people just getting started in life.
Which brings to mind what really caught my attention. Why buy insurance at all?? I mean until you get sick?? If I’m healthy, I don’t need insurance. If I’m sick, I’ll sign my coughing ass up and get my benefits. They can’t deny me for a pre-existing condition and I don’t have to pay more just because I’m sick. What’s the benefit of signing up when I’m NOT sick?? I feel better about feeding a government blackhole?? Sorry, I already get that “thrill” every April 15th.
Removing the incentives for signing up for insurance kinda destroys the underlying premise of insurance in general. That being that you sign up for insurance in case bad things happen. I really don’t expect my house to burn down, but I’ll still pay for insurance in case it does. My premiums may or my not go used, but in the long run, the insurance companies use those payments to pay out for people whose house DID burn down. You get peace of mind, they earn a tidy profit. Win-win.
But if you applied these rules to home insurance, I wouldn’t sign up for home insurance until I smelled smoke, saw water rising or heard the hail start to hit my roof. I wouldn’t sign up for car insurance until after getting out my wrecked car. I wouldn’t even blame my doctor for not signing up for malpractice insurance until after I sued him.
This is just one aspect, I could write on a couple more, but it’s a good example of lots of ideas that “sound good” but in practice are really really awful since they completely ignore human nature and all sorts of natural laws.
It’s a testament to how bad this bill is that awfulness like this is only noticed once even worse parts of the bill are eliminated.
[Crossposted at True North]