It seems the health insurance industry, always looking out for "the people's" interests (as long as the "people" involved are themselves), has suddenly discovered that pending health reform legislation would (gasp!) raise insurance costs. They're really sorry to deliver this news (they were so much in favor of reforms up to now) but...
Scary, right? Well, of course it's meant to be. It's more fear-mongering (not to mention deceptions, half-truths, and out-and-out lies) from the folks who are your good friends until you actually have an illness.
Does anyone really believe that the companies are concerned about our pocketbooks? Or that they're really against higher prices for insurance? Or that this is an unbiased study of future costs? I certainly don't. The timing of the whole thing makes it evident that the goal is political, i.e., to try to derail reforms entirely, so that the very profitable upward spiral of costs can continue, unabated by any concerns of fairness, or limits that Congress might introduce.
Incidentally, does anyone recall back in October 2004, when George W. Bush was running for reelection, that Osama Bin Laden produced a videotape (his first in several months) threatening more terrorist attacks on the U.S.? Bin Laden knew what he was doing; he wanted Bush reelected because Bush policies were playing into his hands, radicalizing increasing numbers of young Muslims, and putting U.S. troops in harm's way, where daily reports of their casualties could help weaken American resolve. The insurance companies have taken a page from Bin Laden's book, promising terror in hopes of stampeding public opinion in the direction they favor.
Of course prices of insurance are going to go up; the companies have been planning it and looking forward to it for months. I've never had the least doubt that in between the passage of any reform legislation and the drop-dead date for its implementation, we'd see huge price increases levied by the companies. (Incidentally, one thing Congress ought to fix is the ridiculously long lead time for completing reforms; the deadline should not be years, but months away, to minimize gouging and to thwart attempts to undo the legislation.)
In fact, many companies have already preemptively raised rates, anticipating that current profit margins will be more difficult to achieve once they're unable to just toss their sick clients out in the street on trumped-up "preexisting conditions." And they've done so while urging their well-paid stalking horses (Congressional conservatives) to oppose the very kinds of changes that would bring costs down (e.g., a truly universal mandate for coverage). Life insurance companies providing health-related long-term-care policies have also announced 10-12% rate increases for next year, by the way.
None of this is the least bit surprising. The surprise, if we voters are wise, will be for the insurance companies; their little cost study may prove to be a self-fulfilling prophecy. No, I don't mean that prices will go up, because that's a given as long as we continue to allow for-profit companies to set rates at will. I'm referring, instead, to the likelihood this continuing effort to derail serious reform, the conscious choice on the companies' part to try to kill it rather than helping to bring it about, will create a groundswell for what is really needed: a public option, strong government price control, and ultimately, a non-profit based health insurance system for most types of care.
That's what the insurance companies have said they absolutely don't want (and we can understand why!). By failing to do their part in bringing about more moderate change, however, they will (not may) help to bring about exactly what they say they oppose. Not in this round, possibly; but eventually, the failings of our health care and health insurance system will be so evident, and the pressures for change so urgent and intense, that insurance companies won't be given the opportunity to be involved. It seems short-sighted, but modern American big business suffers from terminal short-sightedness.
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