More on the insurance companies

Dean Baker, a widely respected economist, published a column today on why the insurance companies don’t want to compete with the government.

There is a history here: Privsate insurance companies compete with the government for Medicare recipients, and most opt for the government plan, not a private plan.

To the argument that people who work for insurance companies will lose their jobs because of the competition, Baker says,  “That is what happens when you eliminate waste in the private sector, just as eliminating waste in the public sector often means laying off unnecessary workers. In principle, the economy should be able to find productive employment for these workers elsewhere.”

And to those who say the government screws up everything it touches: “Apparently, the private insurers don’t feel they would fare any better on a level playing field in the market for insurance more generally than they have in Medicare. Hence, they are arguing against allowing the government-run plan because it would put them out of business.

   ” This is extraordinary. In the old days, we used to think that private businesses could provide many goods and services more efficiently than the government. Now, the insurers are complaining that because the government can provide health insurance more efficiently, they should not be forced to compete with a government plan.”

To read the entire column, visit www.truthout.org.

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