At Work

Choice isn’t all it’s cracked up to be

Senator Roy Blunt in an email replying to a constituent

“In addition to increased costs, families in Missouri and across the nation have lost the ability to choose a plan that best suits their health care needs. Missourians in 97 of 114 counties and the city of St. Louis will only have one option on the exchange.”

Let’s keep all this in perspective. There are 324,118,787 people in the United States; of that number about 11 million are enrolled in a Obamacare exchange plan. That is 3.4% of the population.

By comparison 55.3 million Americans have Medicare and about 156 million have employer based coverage (of that, 70 million have employer self-insured plans). The rest have Medicaid, VA coverage or are uninsured.

You need choice, unrestricted choice

You can’t offer a choice under the “best suits their needs” concept if you mean the choice variable are the health care services under the plan. To save money, the natural choice is for people to select in their own interest. That results in high health care users being concentrated in select plans thereby driving up premiums. 

On the other hand, if the only variable is out-of-pocket costs, the risk is assumed by the individual.

Politicians don’t know what they are talking and are pandering to people who know less.

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4 replies »

  1. Mr Q, you have pointed out one of the basic underlying issues in past posts: more and more people don’t really believe that they are responsible for, and therefore should pay for, their health care. Medicaid expansion and Obamacare, covers many who are destitute, or nearly so. But also includes able bodied adults who theoretically should be able to pay for their health care. The current system will be tweaked a little so the Republicans can try to save face. But the elephant in the room is not a guest, but a permanent resident.

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    • Vince – No wonder people do not think they should pay for their health care or pay very little.
      156 million almost half the country is getting it from their employer. Higher wages would cost the employers more SS and medicare tax, so I do not see that changing, but maybe it should. Because of costs in 10 to 20 years the USA will have single payer health care, because no insurance company will want to lose that much money.

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  2. So, you are telling me the wise politicians up ended the health care insurance market for the benefit of 3.4 percent of the population???? You can keep your plan, you can keep your doctor lies from BHO has a whole new meaning, they screwed us big time and did not care.
    Higher premiums and higher out of pocket expenses coming, from the wise politicians, in D.C., will wonders ever cease. I wonder where I am going to get the extra money to pay for health care. I am already down to 2 meals per day, time to drop to one meal, lol.

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