Daily Archives: May 14, 2011

Health Insurance Bizarro Economics

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Some things snark themselves —

The nation’s major health insurers are barreling into a third year of record profits, enriched in recent months by a lingering recessionary mind-set among Americans who are postponing or forgoing medical care. …

… Yet the companies continue to press for higher premiums, even though their reserve coffers are flush with profits and shareholders have been rewarded with new dividends. Many defend proposed double-digit increases in the rates they charge, citing a need for protection against any sudden uptick in demand once people have more money to spend on their health, as well as the rising price of care.

I don’t think the skin-in-the-game theory takes insurance company price gouging into account.

“I am noticing my patients with insurance are more interested in costs,” said Dr. Jim King, a family practice physician in rural Tennessee. “Gas prices are going up, food prices are going up. They are deciding to put some of their health care off.” A patient might decide not to drive the 50 miles necessary to see a specialist because of the cost of gas, he said. …

… For someone like Shannon Hardin of California, whose hours at a grocery store have been erratic, there is simply no spare cash to see the doctor when she isn’t feeling well or to get the $350 dental crowns she has been putting off since last year. Even with insurance, she said, “I can’t afford to use it.” Delaying care could keep utilization rates for insurers low through the rest of the year, according to Charles Boorady, an analyst for Credit Suisse. “The big question is whether it is going to stay weak or bounce back,” he said. “Nobody knows.

The article goes on to say that people with employee benefit insurance are paying higher premiums and co-pays, and an increasing number have deductibles of $2,000 or more.

First — obviously, more “skin in the game,” or making people pay more money for their health care, does result in people passing up medical treatments they don’t need. However, it also results in their passing up medical treatments they do need.

Why Do Righties Hate America?

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Conservative blogger Susan Duclos takes issue with my theory that large parts of the people opposed to raising the debt ceiling have no idea what the debt ceiling is.

Then again that is the same old song the left like to sing whenever the majority or plurality of Americans disagree with them. In their minds the American public isn’t educated enough on (insert issue here), the American public aren’t capable of looking into an issue and making their own determination.

Actually, I think (and have said many times) that most Americans can make sensible decisions about issues when the facts are clearly presented to them. However, that hardly ever happens any more. I blame news media for that.

I completely disagree with that. I believe the American public is watching the issue closely, they understand the ceiling is going to be raised but want to make sure the endless merry-go-round of borrowing, spending and being forced to borrow more because Washington overspends, ends.

Dishonest argument. Knowing “the ceiling is going to be raised” but wanting it tied to spending cuts, is not the same thing as being opposed to raising the debt ceiling.

The people responding to the Gallup poll were not asked if they preferred certain conditions to be met before the debt ceiling is raised. They were asked if it should be raised, period. It’s not at all clear from other news stories I have seen that the hard-core teabaggers will be placated by spending cuts if the debt ceiling is raised.

But Republicans in Congress, most of whom realize the debt ceiling will have to be raised, are using the issue to try to gouge concessions from the Democrats on cutting Social Security and Medicare. And this is partly because they are desperate to inoculate themselves from the political fallout of the Ryan budget. If enough Dems vote to cut Medicare and Social Security, Republicans won’t be clobbered by the Ryan budget in 2012. So they’re pushing the same “raise with conditions” argument that Duclos is making.

Back to the poll — the Gallup poll says that “Republicans oppose raising the debt ceiling by 70% to 8%.” Independents oppose it 46% to 15%, and Democrats favor raising it 33% to 26%. Remainders admit they don’t know enough about the issue to have an opinion, which is a remarkably large percentage of “don’t knows.”

A larger portion of Republicans than Dems or Independents say they are watching the issue closely, but I assume that means they are soaking in whatever propaganda is coming out of Faux News and rightie talk radio, and have no clue about what’s really at stake.

But if Duclos is correct, and and a whopping majority of Republicans understand the debt ceiling issue, then they must understand that not raising the debt ceiling could be an economic catastrophe. Yet they oppose raising it. Apparently, they favor deliberately trashing our economy. Why do they hate America?