Private Health Insurance Companies = The MAFIA

Now that Bernie is making a timely pitch for Medicare For All, I thought I'd put some emphasis on an aspect of the health care debate that few people are aware of.

Thanks to their always clever public relations efforts plus the millions of $$ they throw at members of Congress, most people do not realize that there is almost no difference between the health insurance companies and the Mafia when it comes to the role they play in the industries they lord over.

Most people just assume that the bosses of HC insurance companies are 'experts' in their field who have a special knowledge of the industry that no group of government bureaucrats in Washington could ever hope to match.

The actual truth is that the insurance companies who administer this nation's HC industry are not experts in the field of HC services. They simply hire the experts that are needed to make their HC services operation work.

Insurance people are finance people. Their only job is to figure out what to do with all of those $$ they receive in premiums that aren't needed to pay claims. They are no different from a bank in this respect. Their daily challenge, "How can I invest this money in a way that will make us insurance people even richer than we already are?"

In terms of their economic role in the provision of HC services to the American people, they are no different from the Mafia. They are simply middle-men who get themselves involved in the provision of a service that people are desperate to have and they walk away with a big cut of the proceeds just because they can (and have paid off enough politicians to make it all work out for them).

We don't need these Mafia-like middle-men in the middle of our HC services industry, milking us for every cent we've got, when government officials can hire experts just as easily as the Insurers can.

The big difference between government provided HC and HC provided by insurance companies is that you don't have the middle-man gobbling up profits off of other people's desperation. Eliminating that is going to reduce overall HC costs immediately. Add to that efficiencies of scale, the elimination of duplicated paperwork, the un-needed billing operation, etc. and you've got THE answer to [most of] America's HC [cost] crisis.

(Big Pharma's monopoly power is another matter altogether.)

For-profit insurance companies are NOT essential to the provision of quality HC services to the American people. They are, in economic terms, a pure waste. They are economic leeches who need to be excised from the HC industry and crushed underfoot. (If Justice means anything to ya...)

Maybe it would be a good idea for all of us who have been calling for single-payer to start casually---and constantly---referring to the Insurance companies as The Mafia, since it aptly describes their utterly un-needed and parasitic role in our HC industry.

I mean just start calling them The Mafia at any excuse. A term (metaphor, actually) which describes their role in HC perfectly, a deprecation that fully intends to insult its target.

Share
up
0 users have voted.

Comments

Pluto's Republic's picture

...there is almost no difference between the health insurance companies and the Mafia when it comes to the role they play

Same goes for the mob bosses who run the US military and defense cartel — snatching more than half of all government revenues to feed their Protection racket.

"Nice little country you got here. It would be a real shame if something bad happened to it."

up
0 users have voted.

____________________

The political system is what it is because the People are who they are. — Plato

@Pluto's Republic @Pluto's Republic True, but one key difference: The racket the Health Insurers have set up actually involves some services of vital importance to the average American citizen.

The protection racket set up by the MIC coalition is even more like the Mob, except it does not rely on offering them protection from your own violence against them, but rather protection from imaginary enemies on the other side of the globe. Variations on a theme, eh?

up
0 users have voted.

James Kroeger

Lily O Lady's picture

a piece of the action. Look at the plethora of new insurance programs. You can now insure your car from break downs and your home appliances against failure. People could end up with multiple insurance policies for every aspect of their lives, bleeding even more money into the insurance racket.

up
0 users have voted.

"The object of persecution is persecution. The object of torture is torture. The object of power is power. Now do you begin to understand me?" ~Orwell, "1984"

@Lily O Lady True enough.

I actually think private insurance has a place in the economy. A small place. It is better than absolutely no alternative whatsoever.

But when it comes to health care, countries like Britain have shown that both optimal efficiency and quality of services can be provided when that middle-man is removed from the equation and replaced by a body of individuals who feel a strong sense of responsibility to the American people, generally.

Private insurance is the only answer in backwards, dysfunctional societies like Somalia, but in wealthy, technologically sophisticated societies like ours, it is insanely stupid to pay twice as much as we need to pay for our HC security.

up
0 users have voted.

James Kroeger

Lily O Lady's picture

@James Kroeger

crap wages/salaries makes them unable to take care of emergencies like car or appliance repairs, setting them up to need more and more insurance. Paying for all that insurance means less money that might be set aside.

I acknowledge the importance of insurance, but it's getting out of hand.

up
0 users have voted.

"The object of persecution is persecution. The object of torture is torture. The object of power is power. Now do you begin to understand me?" ~Orwell, "1984"

studentofearth's picture

if they meet specific criteria.

In 1945, Congress enacted the McCarran-Ferguson Act,1 permiting states to regulate and tax foreign insurance companies doing business within their borders. The Act also exempts the insurance industry from the federal antitrust laws if the state regulates the industry.

The article states one of the reasons the industry requested regulation was to decrease competition.

II. THE EVOLUTION OF THE MCCARRAN-FERGUSON ACT
The insurance industry mirrored the rapid growth of the American economy in the early 1800's, and the prospect of large profits attracted many unsophisticated newcomers with minimal capital. This expansion created a heightened need for governmental regulation because large casualties and increased competition threatened the viability of many companies. Each state regulated the insurance industry to some degree, but the regulation proved unsatisfactory. Consequently, the insurance industry sought some type of federal regulation.

up
0 users have voted.

Still yourself, deep water can absorb many disturbances with minimal reaction.
--When the opening appears release yourself.

gulfgal98's picture

Big pharma is number one followed by insurance companies at number two. This is according to Open Secrets.org.

up
0 users have voted.

Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy