A system based on private insurers won’t control costs because private insurers barely compete against each other. According to data from the American Medical Association, only a handful of insurers dominate most states. In 9 states, 2 insurance companies control 85 percent or more of the market. In Arkansas, home to Senator Blanche Lincoln, who doesn’t dare cross Big Insurance, the Blue Cross plan controls almost 70 percent of the market; most of the rest is United Healthcare. These data, by the way, are from 2005 and 2006. Since then, private insurers have been consolidating like mad across the country. At this rate by 2014, when the new health bill kicks in and 30 million more Americans buy health insurance, Big Insurance will be really Big.
In light of all this, you’d think the insurance industry would be subject to the antitrust laws, so the Justice Department and the Federal Trade Commission could prevent it from combining into one or two national behemoths that suck every health dollar out of our pockets (as well as the pockets of companies paying part of the cost of their employees’ health insurance). But no. Remarkably, the Senate bill still keeps Big Insurance safe from competition by preserving its privileged exemption from the antitrust laws.
found by Aric Mackey
The whole “competing over state lines” is silly. its just a rightwing talking point.
Fact is, insurance companies are national, and they do not compete with themselves. There are probably 30-40 state farm branches in my area, and you can transfer your policy to any branch without changing it one bit. That means its one huge monopoly, not 30-40 independent competitors.
“How will the “free market” handle a business that fundamentally isn’t profitable?”
Bankruptcy.
Why do you think the “public option” was thrown out by Congress? Because it would have given the public a choice, other than these monopolist insurers! Big surprise, this option was so hotly contested, and the first thing to go. What will finally be approved (if anything) is a bill that hands billions of dollars over to these commercial insurers. For doing just as they’re doing now. Maximizing cost, while minimizing care. But soon, for all those that could afford to pay for it. Basically an Insurer Subsidy, protecting them from the lean years. They’ll still be calling the shots, as to how much they’ll allow you to be treated.
Henry VI got it all wrong. It should have been:
“The first thing we do is kill all the lobbyists.”