Funny thing, The stock market went DOWN today and before you think that may be due to other forces, please know that hospital stocks went down and insurance stocks were mixed, SO, after the results of the election were known, the insurance stocks did not soar. Interestingly, following the passing of the Senate version of the bill last Dec, stocks soared also, note this exchange from last month,
On Sunday's Meet The Press, MSNBC host Joe Scarborough was asked a simple question about health care: What has President Obama achieved? His answer: "He has made a lot of people with insurance stock a lot richer."
"This [bill] is great for insurance companies," he explained. "They were going to reform the system [but] neither side wanted to take on the insurance companies. Neither side wanted to get rid of anti-trust exemptions. Neither side really pushed hard to allow you or me or anybody here to buy across state lines. And as Howard Dean said -- and this is a devastating fact -- insurance companies' stocks reached [52-week] highs on Friday after this so called reform bill got its 60th vote. So David Axelrod, who I love and respect, but David Axelrod kept saying 'we took on the insurance companies, this is real reform, they're against it.' Really? I don't think so."
However, I do not think that the insurance Companies love this bill, on the contrary I think that they would love to have things stay the same BUT they also were anticipating increasing their rolls if it did pass. Obama sought their input and had them ON BOARD. To try to make it out that they were not complicit in mandating that every man woman and child buy from their companies is just dishonest. You really think they thought this would be a bad thing? Ha ha ( I got a bridge in Alaska to sell you).
Now I have 2 major points to make. First regarding our economy. Our economy is not a free market economy (especially in regard to health care ) so the “enlightened self- interest” comments goes only so far.. Now I am not an economist and my understanding of things are entirely self taught so bear with me. We have a mixed economy and there is heavy intervention in the health industry from the federal and state governments. Frankly, I think we would actually be better off it was a free market economy Insurance companies can’t help but have some power over individual markets as the government does not allow for true competition. States regulate and in some areas only one or two companies hold the whole shebang, How can you create market forces in that type of atmosphere? The people are only able to buy one or the other and both probably offer only one or two rigidly controlled policy that mandates so many benefits (whether needed or not). How can that work? If companies were allowed to sell across the country and offer different plans for different customers then we could have a good result where the market forces would prevent any one company from taking advantage of their customers, those customers would be able to find other companies to sell to them if the prices got to high. (I acknowledge that some people would need subsidies to purchase their own policies but by having them purchase and take ownership they then become involved in making decisions and keeping some companies in business and others run them out of business). True competition (and I do not mean from the government) is missing.
OK my second point is regarding this idea that insurance companies are inherently evil. They make money, yes they do, ooohhhh . They earn money for their “rich stockholders” Hmmm….Yup they do, and I am certain that not all the shareholders are “rich” but must admit that you actually must have money to buy stock. The profit margins for insurance companies range from 2-4 % depending on who you are looking at, this does not seem (to me) to be some kind of an obscene amount. It is easy to point out, (like many do to the oil industries also) “Oh, look at the BILLIONS they made in profit“, but fail to realize this is not a large amount when looking at their overall gross or expenditures. Anyway, I don’t want to get in over my head, but count me in for companies in business to make money, lets allow them to compete in a fair manner and let ‘em go.. Don’t you think that doctors or hospitals (well maybe not the Catholic ones) or medical device people ALL make money off of us? (in fact Johnson and Johnson profit margin is 20%!). Guess what they do, they exploit our illnesses and accidents and actually make money!!!. Why are the insurance companies the bad ones? If we hate them do much lets get rid of them and do direct pay to the providers? Maybe only have catastrophic care policies for hospitalization. Fine with me but lets not castigate one aspect of health care and pretend that everyone else is in it for the goodness of mankind.
OK. One last point, Scott Brown made an excellent point today when correcting the newswoman when she expressed surprise that he called Vicki Kennedy and how could he call and talk to the widow of Ted Kennedy when he is responsible for defeating Ted Kennedy’s legacy and current Health care reform ( implying that was arrogant and presumptuous) and he said something to the effect “I am for Health Care Reform, just not the reform that is currently in Congress” I have high hopes for True BI-PARTISIAN health care reform, something in which we will all benefit from. I hope you see that as well soon. ( and I certainly will be thrilled to tell you, “I told you so”)
cheers and I am still basking in the glory that one feels when they are FINALLY validated!
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