|
Edited on Thu Oct-29-09 08:03 AM by Deep13
Like many of you, I saw the Lieberman clip on Olbermann last night. Like most of you, I wanted to wipe that smirk off his face. Of the many lies he was telling, the one that stuck out in my mind was the idea that if insurance profits get squeezed by a public option, they will pass those costs onto their rate-payers.
This is false for a simple and basic reason. Prices are not controlled by a company's subjective expectations or even needs. Prices are driven by supply and demand. Right now demand is high as everyone wants coverage, but supply is low since only a few companies are offering insurance and even that is artificially scarce because of all the exclusions insurance companies have. Plus, the exclusion of insurers from antitrust rules further exacerbates the situation.
A public option will create more supply by offering another insurance option. It will reduce demand by giving customers somewhere else to go. As a result, prices can only go down. Granted, the CEO of Aetna won't be making $20M per year, but that's a sacrifice I'm willing to make.
On a personal note, I want to thank Sen. Sherrod Brown (D-OH) for his tireless efforts on this matter.
|