Posted by politicalpartypooper on June 24, 2009

Health care reform is hitting snags.  Those snags look like dollar signs, but upon closer inspection, are really nothing more than lies.  Sure, Congress people and Senators have been purchased like the Saturday night whore.  But the real problem for the Public option isn’t their betrayal; instead it’s something the health insurance industry likes to call “post illness underwriting”.

Post illness underwriting occurs when an insurer accepts a client’s application, issues a policy, collects premiums, and then begins underwriting the risk of that client the moment an illness occurs.  I sell life insurance and long term disability insurance as part of my business.  Everyone who sells these policies knows that the worst insurance companies to work with are the ones who approve nearly every application, and then do their underwriting after death or disability has occurred.  In truth, this practice does not happen all that frequently with life insurance.  But it does for Long Term Disability; nearly as much as health insurance.  The result of all that post illness underwriting is usually rescission; where an insurer cancels the policy after determining that some pre-existing condition, or undotted “i” made the policy worthless.

The snag occurs when we add a public health insurance option to the mix, because with that option, private insurers can no longer rescind policies without losing vast chunks of business.  In truth, private health insurers need the uninsured to exist.  If everyone is covered, then the practices of these private insurers will be put under a microscope, and people will realize that no rescission is possible with the public option.  Once they realize that, private health insurers will be forced to lower their prices, in order to attract people to their risky product.  After all, why would you pay the same amount of money for a private insurer who may choose to rescind your policy when you could get a guarantee from the government that you would always be protected?

The only way private health insurers can exist alongside a public option is by becoming the low price option.   In the insurance industry, the Cadillacs are the companies that follow through on their promises.  The Fiesta’s are the ones who rescind policies regularly.  In a Public Option world, is it really that hard to figure out which one would be the Cadillac?

Private health insurers do not want you to know this.  They are buying elected officials at Guinness Book of World record paces.  They are funding television commercials, and are teaching your Senators and Congresspeople what to say in soundbites to strike fear in your heart against the public option.

This is the truth, discern it for yourself:  If a public option is available, and that public option guarantees coverage for a certain price without the chance or rejection or rescission, and that policy allows you to keep your doctor, and even pays for pre-existing conditions, is that policy like any other policy you have ever known?  The private health insurers cannot compete with this.  When they say this option will destroy their industry, they are correct; but the fault does not lie with the government or the public option.  The fault rests solely with an industry that long ago decided to collect premiums, make promises, and break those promises over and over and over.

Now that industry wants you to trust them.  The biggest problem for them is that most of you have been burned at least once by one of them.

Don’t let them destroy your chance for a decent public option.  Call your elected official and tell them that you know how much money they have accepted from health insurers; tell them you want the public option, and tell them they will not be re-elected if they fail to pass it, no matter how much money the health insurers give them.



  1. Bruce W said

    Critics of the public health insurance option claim every government enterprise leads to higher costs. However, public universities attract the majority of college students because their tuitions are 50% less than private universities. If most people signed up for the public option then businesses would be relieved of health care costs and less likely to send jobs overseas.

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