AHIP argues for Public Option, Thank You

The easiest way I can think to break down the proposed health care reform is as follows. (this is extremely simplified)

1) Forbid Insurance companies from denying or cancelling coverage for preexisting conditions. Forbid Insurance companies from charging those who get sick more than those who are healthy.

2) Coupled with the above changes. The government will a) require large employers to provide health insurance b) requiring individuals who are not covered by large employers to buy heath insurance. (this will increase the number of customers by 40 something million helping to offset the additional cost from step 1)

3) the government will give assistance to those individuals who they deem can not afford the required insurance.

As a result we now have a system where insurance companies will have to pay out higher cost as a result of step 1) These companies will have greater incomes because they will have 40 million new customers to take premiums from.


The remaining question is if everyone in the country is required to have health insurance one way or another and there are literally only a few insurance companies to choose from what will keep the companies from raising and raising their rates like they have over the last decade?

As a matter of fact the report that the Insurance Industry just commissioned has said they will in fact raise rates by 110% if this reform is passed.

This is why a truly effective public option is required. Health Care Reform without a competitive public option is simply a hand out to the private companies that have seen their profits increase by over 400% over the last 10 years.