Healthcare Explained Transcript

hey, why is healthcare so expensive and how does obamacare plans on fixing that?

to understand healthcare inAmerica, you have to think about bananas

how so?

when you buy bananas, do you ask how much they cost?

yes

how about when you get a perscription filled, do you ask how much that costs?

no

or when you visit a doctor or get surgery, do you ask how much they charge?

no

so you spend more time figuring out how much to pay for a 2 dollar fruit than for a 2 thousand dollar medical procedure

wow, that’s completely bananas.

most of us behave that way. So Banana prices remain reasonable, while healthcare costs explode

because nobody is shopping around for healthcare?

yes

so the insurance companies make the pricing decisions

yes, but that means the patient and doctor aren’t.

why doesn’t this problem happen to other kinds of insurance?

medical insurance is to regular insurance what a politician is to an honest man.  fake and totally twisted.

how?

traditional insurance is protecting against rare and catastrophic events, and charging a premium based on the likely hood of those events

but my health insurance pays for everything

that’s the problem

why?

imagine if car insurance paid for oil changes. would you shop around for an oil change?

no, I would go to the most convenient place, go often, and ask for the expensive synthetic stuff

do you even know what that does?

not a clue. but so long as somebody else is paying, then why not

in that scenario your car insurance company would have too many customers gettig too many pricey oil changes, so they would have to raise premiums to stay in business.

if they make me pay more, then I am going to get even more oil changes to get my moneys worth.

congratulations.

why?

now you understand the death cycle of health insurance.

so since we don’t pay for most medical services, we use too much.  that keeps driving up the cost to the insurance company, and they have to raise our premiums. but the more they charge, the more healthcare we use to get our moneys worth.

and since obamacare will increase coverage by forcing everyone to buy health insurance, this problem would get worse. the more you force people to buy insurance that they don’t want, the more medical services they would consume to get their monies worth.

what other problems are there with healthcare inAmerica?

health insurance premiums are not based on how risky someone is

why does that matter?

are you a safe driver?

yes

do you think your car insurance should be cheaper than a teenage boy trying to impress his girlfriend?

of course. I am less likely to get into an accident

but what if car insurance companies were forced to charge everyone the same premium.

then I guess they would charge me more to make up for the bad drivers

exactly.

what does this have to do with health insurance?

many states limit how much health insurance companies can charge people with pre-existing conditions, and obamacare will make it illegal to base insurance premiums on someones medical riskiness.

wait a minute, that’s not a fair comparison.

why not?

pre-existing conditions are not the persons fault. its not fair to make someone pay more for a disease they couldn’t help getting.

what’s fairness got to do, got to do with it?

this is not a tina turner song, its real life. saying fairness has nothing to do with it is cold hearted.

it is cold hearted, but its also reality. Economics is based on price and incentive, not fairness. Economies based on fairness eventually go bankrupt, likegreece.

are you saying there is no room for discussing fairness in health insurance?

there are ways to help the disadvantaged, but that kind of fairness doesn’t belong in health insurance. it belongs with charities. I would donate money to a charity for people with pre-existing conditions, but I wouldn’t force insurance companies to charge them the same rate.

I see.

there is another risk to insurance companies ignoring pre-existing conditions.

what?

people would no longer want to buy health insurance

I don’t understand.

Imagine you could buy homeowners insurance the day after your house burned down. would you buy insurance every year?

of course not. If I could wait until after a disaster, why waste the money

the same would apply to health insurance. why pay thousands today when you can just wait until after you get sick.

but that would mean the only people buying health insurance are the ones about to cost the health insurance company a ton of money

so health insurance companies would have to charge their healthy customers more and more

but that would drive even more healthy people to not buy health insurance

that’s why many young healthy Americans don’t buy health insurance. They realize they are being overcharged to make up for the sick and elderly. This is also why obamacare has to force everyone to buy insurance. If they didn’t, the lack of healthy people kicking money into the insurance pool would collapse the system.

making a product less desirable for consumers then forcing them to buy it is not an elegant solution

its like pouring gasoline on a fire then buying a bigger fire extinguisher.

so what’s going to happen when Obamacare is fully implemented?

a lot more people will have health insurance

so a lot more people will now want to visit the doctor

yes, especially since the new law makes cheaper high deductible policies illegal. Forcing people to pay for premium insurance will drive them to seek more doctors visits to get their monies worth. So demand for doctors will go up,  but the supply will stay the same.

supply?

you can’t invent doctors out of thin air

so the same number of doctors will have to handle many more patients?

there will be longer wait times and lower quality service

but the President said the new law will not impact the quality of medical services

sure, and my mother said it was the tooth ferry that left a quarter under my pillow. Just because someone says something doesn’t make it true. You have to follow the chain of cause and effect. Obamacare is going to increase the demand for medical services without increasing the supply. That means prices go up and quality goes down.

What other effects are there going to be?

there are going to be tons of companies inAmericathat hire 49 employees but not a single person more

why 49?

because the new law says any company with 50 or more employees has to provide health insurance for all of them, so the cost of the 50th employee is astronomical.

wow. what other crazy side effects will this law have

tons, but I can’t liste all of them.

why not?

the full law is two thousand seven hundred pages long, and I don’t have the time to read it.

doesn’t that disqualify you from having such strong opinions?

by that measure you could also disqualify the president, the congress and the supreme court justices. I am sure none of them have read the entire bill either.

but this is one of the most sweeping legislations in American history, and its going to impact so much of our lives, and you are telling me its packed with dangerous provisions that a lot of people aren’t aware of

you really shouldn’t dwell on it too much.

why not?

cause its going to drive you completely bananas.

 

 
 

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