With every day opposition mounts against the inclusion of a public option in any health care reform legislation. The single payer option isn’t even “on the table.” It sure looks as if there are a lot of Senators and Congresspersons who are scared of the competition that a public option or what a single payer system would do to the private insurance companies. Why I even heard some of them say they believe the public option or the single payer system would drive the private insurance companies into bankruptcy. Poor babies. You would think that these private insurance companies are on the verge of bankruptcy and are in need of a bailout. The truth is that these companies are making enormous profits and paying their CEOs millions of dollars.
They might have to make less profit on health insurance if there were a public option to compete with them or even a single payer system, but they would continue to sell other kinds of insurance and could still sell premium health insurance packages to those who could afford to pay for them. But going bankrupt is not one to the likely outcomes they face.
Mind you I am not opposed to anybody making a profit. Heck, maybe the government could even make a profit off of the public option. The way I do the math, the public option or the single payer system would be totally paid for out of the premiums collected some subscribers, the same way the private insurance companies get paid. This would make it “deficit neutral” and “revenue neutral.” Now here is the difference, the public option or single payer system would have administrative overhead of about 4-5 percent also paid from premiums while the private insurance companies have administrative overhead of around 30 percent that are also paid by the premiums they charge.
Do you know what this administrative overhead consists of? First of all, it covers the wages of the insurance companies employees who process claims and decide how to deny benefits to customers. Did you know there are 30 health insurance employees for every health care provider in this country? They also have to spend money to advertise their company’s products. They have to pay to build fancy buildings in the “high rent districts” to house their companies. They have to pay their top executives enormous salaries and benefits. Finally, they have to satisfy their stockholders and achieve hefty profits.
Gee, why couldn’t the government pocket most of the differences between their 5 percent overhead and the 30 percent overhead of the private insurance companies? If we had a robust public option or better yet a single payer insurance system run by the government, this could be used to pay for the whole health care reform package without having to raise any taxes. What a deal!
Maybe it would also level the “paying field” and bring down health care premiums and at the same time we as the stockholders would benefit as well. Health care reform is starting to look like a good deal after all, particularly if you factor in the public option or the single payer system. Oops, I forgot, the government cannot make a profit off of health care. Maybe the question is: “ Should anybody make a profit off of somebody’s illness.” In most developed countries of the world the answer is “no.” In this country, however, bottom line profits, greed, waste, fraud and abuse are what drive our health care costs to the highest per person level in the world. We can do better!
Stay healthy and be well.
Barry
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