Ron Amundson’s Political Blog

The US needs health insurers, no matter their looter functionality, as they are typically the first in a chain of looters, with the chain encompassing Wall Street, Uncle Sam, and hospital administration, all the way to the receptionist at the local insurance agents office. Not one of the looter functions is productive in regards to health, although to be sure, each part of the chain does have productive people… but all on the backs of the sick person, and the physician/health staff actually treating them.

Most certainly moving to single payer by removing a large chunk of the looter infrastructure would be a massive boost in health care efficiency, if nothing else by forcing a greater percentage of health care costs into the productivity arena. The thing is… what happens too all the people, investors, government programs, who are highly vested in the looting arena. (do be aware, while I think single payer is a good step forward, it is far from an ideal solution, and has a multitude of unintended consequences)

On the other hand… the health insurance industry appears to be going the way of the buggy whip. Their business models dont seems to be sustainable on a micro level, and as health care costs continue to consume  a larger and larger percentage of gdp, sooner or later more than just a few are going to cry uncle on a macro level. Currently we have consumers upset, ie they get dropped when they get sick, or as soon as they need coverage. In time, investors are going to be upset because the insurance companies ROI is not sustainable, and thus once they start bailing, well… it will get interesting. Uncle Sam currently serves as a dumping ground for many, once insurance companies cast injured or seriously ill folks aside. Hospitals and physicians, the actual providers also serve as a dumping ground, in that they absorb the bill when no one can pay (as yes, someone does have to pay at some point). Or perhaps, more appropriately, the looters (ins companies, government, and have stacked the deck against the producers (the docs/health providers) such that they, the looters dont have to pay… all the while somewhat appearing willing to do so. Michael Hiltzik’s column in the LA times last week really hit home on this aspect with an article entitled What do we need health insurers for anyway.

So, whats the solution? Do we need them? As an idealistic far left liberal, I say no, we absolutely don’t need them….  plus they are going the way of the buggy whip. The business model is not sustainable, and they are already whining to congress. Its not rocket science to predict the collision path we are on in the healthcare / insurance /economics /govt arena.

As a pragmatist, yep, I think we need them, just as history shows we needed the tobacco companies, and farm subsidies… well up until very recently that is. The question is, will there be an event to start progress down the road to change, just as the lawsuits in the 90′s did for tobacco, or will there be whacked and misguided approaches to prop up failed business models to delay the inevitable as long as possible? And if such is the course of action chosen, what can be done to minimize collateral damage along the way?

Government is likely not going to be the answer… just look at the proposed health care reform bills on both sides… its the same repeated deal over and over again, enrich a connected few over the looses of many… its merely a question of which few are enrichened, not necessarily what is the best for the country, or even the average citizen.  Ultimately, its not the availability of insurance, its the availability of healthcare,and thats a question that far too few are willing to address.