Saturday, June 13, 2009

The duplicity of the Democrats’ Health Care Plan

One of the central lessons of high school Civics classes is that anticompetitive behavior is detrimental to society; so detrimental, in fact, that whole governmental oversight bodies were established early last century to identify and break up companies that engage in these practices. In those civics classes, we were all taught to despise the tactics of the Andrew Carnegies, the J. P. Morgans, the Vanderbilts, and the John D. Rockefellers of the world. And for good reason: without competition, a company can charge whatever exorbitant rate it wants and in return provide whatever substandard services it wants.

One model that high school student are given that allows them to visualize how anticompetitive practices work to destroy competition is that of the gas station owner. In this model, a big, rich gas station owner (think Rockefeller’s Standard Oil), sets up shop next to local Joe’s gas station. Since Standard Oil could pull resources from many other gas stations (and other businesses) it owned, it could afford to temporarily set its gas sale price below the market rate, and drive Joe out of business, thus creating a local monopoly.

Well, you say, there’s nothing to worry about today; the Morgans and the Rockefellers are vestiges of a bygone era, and our government protects us against such scoundrels. Yes they do, but who can protect us against the government and their anticompetitive intentions? The so called “Public Option” that that the Democrats want to include in their massive health care bill is every bit as anticompetitive as what the Morgans and the Rockefellers did. How so? Well let’s look at the largest healthcare provider in the U.S., Blue Cross Blue Shield. There are 39 franchises of this insurer, each in a different region (so they are actually separate companies, just like McDonalds franchises), and they insure roughly 100 million Americans. The annual revenue for each franchise is in the low billions (for example, about $3 billion for the New Jersey affiliate). But for argument’s sake, let’s assume they are all one company and have revenues of $120 billion (again, aren’t and they don’t). Well the U.S. Government’s revenue for 2008 was $2.5 trillion! Barack Obama says he wants to “keep the health insurance companies honest” by offering a low cost “public option” (shhhh…Don’t say ‘Government-run healthcare’!). What Obama will do in fact, is park his Rockefeller-like health-care gas station right next to Joe’s and run him out of business…that is their plan…that is their intention. He will use your money ($2.5 trillion in tax revenues) to outcompete local franchises until they are driven out of business, and until the “Public option” is the only option.

Look above to the bolded-italicized text and re-read those words carefully. This way, if and when the Democrats heath care plan goes through, you will understand why your taxes have gone up so much, why you have to wait so long for a doctor’s appointment, and why you weren’t prescribed the latest advanced medicine. If you think this is scare-mongering, do your own research and see what a nightmare the much vaunted (by the left) government health care plans of Canada and the UK have become.

If you want your local doctor’s office to have the look and feel of your state DMV, sit back and relax. Otherwise, get off your duff and email (at least) your state representatives and tell them how you feel.

1 comment:

  1. Very well put bio-man. And don't forget what will come right after all this... civil servant healthcare workers. We will have doctors and nurses who are exempt from malparctice law suits and get paid a rather meager wage. They will have no motivation to do well. Do you know anyone who says that the US military or VA healthcare systems are the best places to get medical treatment in the country?

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