Last week Blue Cross raised rates, some as high as 39 percent and now the nation is in an uproar; "How dare they raise rates." Nobody said anything when Lays Potato Chips went from $1.89 a bag to $3.79. If McDonald's wants to raise the price of a Big Mac 40% do you think anyone will care? Competition is the name of the game. If health insurance is such a lucrative field, how come there aren’t a half a million companies trying to sell us a plan better than the one we already have? We went from 10 mutual funds to over 10,000 today; why didn’t health insurers increase proportionally?
Our government whines and complains that it is not right to make large profits (Bill Gates and Warren Buffett's name never seem to be brought up). Congress reminds me of Claude Rains in “Casablanca” when advised that gambling was taking place, he said “I’m shocked—shocked to find out that gambling is going on in here.” Later a waiter handed him his winnings.
It is assumed that the rate raise by Blue Cross implies excessive future profits. Just maybe, the rate increases indicate what the government (by way of Congress), has done to the dollar by printing more of them. Plus with the bad economy, a lot of people are cutting corners on health insurance (if you’re not sick) it's optional—buy food and gas for work instead. The insurer's pool of young buyers is decreasing drastically.
Where does government get the power to tell private enterprise what they can charge? Obama today stated his party platform was not advocating Socialism. But “By God, everyone deserves health insurance!” Forget that “We the People,” can’t pay for it individually or as a group. If you want to see what government price controls do, examine what rent control does to local real estate. Someone once compared it to having an atomic bomb go off in the area, the damage was the same, there just wasn’t any explosion, it just took longer.
Figure that government in its evolution, has had 3,000 years to perfect itself. The basic products supplied by government turned out to be; roads, police, fire suppression, military defense, regulation of commerce, pretty basic stuff.
Solving problems sounds easy. But how come governments today, have the same problems as they had hundreds of years ago? Wouldn’t it seem logical that most of the serious problems facing man would have been solved by now? Let’s face it, the mind set is “We are smarter than the people from the past, now we can fix it.” I tend to doubt that premise.
As for the future, how can the government give us back everything we paid in taxes, as a retirement and health care benefit? Just maybe, the people that claim to have a solution to all of our problems, are part of the problem.