In Insurance Companies We Trust

Published on

During his news conference at the National Press Club (get webcast here)
in Washington Monday, the Gov fielded lots of softballs from the
smitten D.C. press corps. He also dodged one hardball from the C-Span
moderator, asking whether as part of his health reform he’d regulate
health insurance rates in the same way that auto insurance rates are
successfully regulated in California.

His response: Well, maybe, "if there’s a big problem" later. He said he
believed that requiring everyone to buy insurance on the private market
would reduce the cost of health insurance premiums, currently averaging
about $11,500 a year for a family of four.

Then, the tipoff: "You must let everyone make their profits," he declared.

Come again? It’s insurance companies’ bloated overhead and record
profits that are the biggest driver of health care cost increases. Of
course, part of that bloat comes from the $3.5 million the health
industry has contributed to Arnold’s political campaigns.

"Everyone" obviously doesn’t include Californians who have to foot the
health insurance bill. Requiring all to buy such insurance, without any
cap on what insurers and HMOs can charge, any floor on how little they
cover and no need for the industry to publicly justify what it charges,
is a recipe only for profits — not affordability.

Trusting the medical/insurance industry to cut prices and accept lower
profits is like trusting oil companies to stop gouging drivers on
gasoline prices — except that people can take public transit without
risking their lives or courting medical bankruptcy.

Consumer Watchdog
Consumer Watchdog
Providing an effective voice for American consumers in an era when special interests dominate public discourse, government and politics. Non-partisan.

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