@CoastalRat,
CoastalRat wrote:
And taxing insurance companies will force them to raise rates, thus increasing insurance costs to all.
They are to be taxed on their most profitable plans, according to the speech the Prez gave and various Democratic proposals. There is plenty of room for them to absorb these taxes without raising rates.
Quote: In all my years of business, I have never known a company to pay a dime in taxes. Every company I have ever been associated with will pass any and all tax increases on to customers in order to maintain their desired level of net ROI for the owners/stockholders.
Yeah, this just reminds me of the question: why the hell do we even have for-profit insurance anyway? Health issues should not be subject to some Return on Investment for stockholders, it's the dumbest way to deal with these things.
Quote: This is one of my problems with what Obama is proposing. Of course, he also promises to keep insurance affordable, but I don't quite see it. The only way to do so would be for the public option to undercut insurance rates to drive down the private sector charges.
I hope this is exactly what will happen.
Quote:But that would convince many to leave their private sector insurance for the public option, which would ultimately drive up the payouts on policies, thus creating more of a tax burden while driving some, if not many, private insurers out of business.
I hope this is exactly what will happen. If the private insurers cannot show any added value from their existence, there's no reason to allow them to exist. If they can show added value, people will want their services, even if they are more expensive than the public option. It is a wonderful test of the validity of private, for-profit health insurance.
Quote:The cycle continues as their customers then turn to the public option, putting an even greater burden of payouts on the taxpayer.
At the same time, it increases the pool of people paying premiums into the Public Option program; more money flows to the program which is currently flowing to private interests and profits. It's moving money around, not creating additional expenses for people.
Quote:There are other issues I have, but again, I'm willing to withhold judgement until I see what a final bill looks like.
Probably a good call.
Cycloptichorn