Insurance Insurance

I have discovered a proposal for “fixing” health care on the Cato Institute website that is an absolute hoot.

The plan (see PDF) is to eliminate employee health benefit insurance and all government health care support, and throw everyone into the private insurance market. Insurance companies would be allowed to risk-rate premiums, so that as people got older and/or sicker their premiums would go up.

However, Cato says, this doesn’t have to be a problem. The solution is … wait for it … insurance insurance. They call it “health status insurance,” but essentially it’s insurance insurance. It’s a separate policy you take that will insure you against catastrophic increases in your health insurance.

I’m not kidding. That’s the brilliant plan.

Of course, the insurance insurance would only be reasonably priced if young and healthy people are willing to pay for it along with their regular health insurance premiums. And Cato is against any kind of mandates. But young people are certain to be willing to pay for two separate insurance policies to pay for health care, even if the second one isn’t something they think they will need for years. Wouldn’t they?

You can’t make this stuff up.

All Liberals Are the Same

Peter Singer is an Australian philosopher with a lot of provocative ideas. I don’t always agree with his ideas, although I don’t always disagree, either. He’s the sort of fellow who generates a perspective that’s interesting to think about, but I think sometimes he likes to say outrageous things just to stir the pot. He is alleged to have postulated that maybe it’s OK to euthanize handicapped infants, for example. I don’t know if that’s exactly what he said, and at the moment I’m not interested enough to check it out. However, one may be grateful he’s an academic and not actually in charge of anything.

Anyway, Singer wrote an op ed for the New York Times titled “Why We Must Ration Health Care.” The op ed is a philosophical exercise, not a policy proposal — Singer’s no economist or policy wonk — and he’s basically saying, here’s another way to think about this. His essential point is that people ought to own up to the reality that health care is a commodity with limits and is rationed. He makes the observation that U.S. health care is rationed now, by ability to pay.

Dr. Art Kellermann, associate dean for public policy at Emory School of Medicine in Atlanta, recently wrote of a woman who came into his emergency room in critical condition because a blood vessel had burst in her brain. She was uninsured and had chosen to buy food for her children instead of spending money on her blood-pressure medicine. In the emergency room, she received excellent high-tech medical care, but by the time she got there, it was too late to save her. …

…When the media feature someone like Bruce Hardy or Jack Rosser, we readily relate to individuals who are harmed by a government agency’s decision to limit the cost of health care. But we tend not to hear about — and thus don’t identify with — the particular individuals who die in emergency rooms because they have no health insurance.

This is an excellent observation. I have quibbles about some of Singer’s reasoning, and how he presents his ideas, but still, it’s thought-provoking. However, my first reaction to his headline was “Why Pete Singer Should Shut Up,” because I knew this would enflame the passions of the Right and throw them into a cage-rattling, feces-throwing fit. We don’t need any more of that now. And sure enough, a number of rightie bloggers are having hysterical fits about the headline, although so far none I have seen seem to have actually read Singer’s op ed.

For example, A.J. Strata writes, “Americans Have Succeeded Without Rationing Health Care.” Singer gave one example after another of the way Americans do ration health care, and in fact, ration it even more than the awful European countries with “government run” health care.

Far more Americans reported forgoing health care because of cost. More than half (54 percent) reported not filling a prescription, not visiting a doctor when sick or not getting recommended care. In comparison, in the United Kingdom the figure was 13 percent, and in the Netherlands, only 7 percent.

I take it A.J. didn’t get that far into the article, as he makes no attempt to address Singer’s point.

My favorite example of teh stupid, however, is American Power, which turned Singer’s headline into “Obama Will Ration Health Care,” because, you know, all liberals think alike. So whatever some Australian philosopher says must be what Barack Obama intends to do. Brilliant.