I've been mulling this for a while and would love to hear some thoughtful answers. I can't understand why the Health Care Industry is raising rates so drastically, as reported by many who post here. When you consider the economy and that legislation is still pending I am at a loss to explain why rates would be going up so much.
I'm an American living in Tokyo and we have what amounts to socialized medicine here. The rates for what health services that can be charged are incredibly inexpensive when compared to the US. I went to the doctor recently twice for a skin allergy and medicine included paid less than $200.00. That's the full rate before I submit my receipts for insurance which will pick up the bulk of it, and I say "will" with confidence because they always have in the past, no questions asked, just a receipt with the claim.
My wife's birth which will happen almost any day now will cost us around $600.00 (assuming everything goes to plan) mostly because we decided to get a private room at the hospital for her stay there and that will make things a little more expensive. It would have been about $100.00-200.00 without the private room.
But we have been talking about moving to the US since we met and therefore I have been particularly interested in the HC issue since the 2008 campaign. One thing I have read closely is when people describe these great rate increases they have been given by their private Insurance companies in the last year. Anywhere from 25%-50% if memory serves me correctly. Some of these stories have been turned into TV commercials with great effect. But what puzzles me is why such rate increases are occurring now.
I believe that like many things businesses in the US that there are good people trying to do good things in the Private Health Industry. People like Wendell Potter, maybe not as outspoken, must be littered throughout the companies that have such a big influence in our life. Surely everyone must know a friend or relative who works for one of the big private companies and they can't all be insidious individuals. That said, when WHO ranks us #37, when Harvard reports 45,000 people die from preventable illnesses every year and when I learn that the Medical loss ratio has gone steadily down since Clinton tried HCR back in 1993 I am convinced that whatever the problem(s) that something must be done. This graph at 538 really hit home for me.
So I think the private HC companies are well aware of the negative feelings toward them and they must also be aware of the advantageous situation they have in the US. These are smart people who know our weak spots and have done a good job conditioning us to believe that, though a little expensive we still have a very good system in the US. So in a year when at least at one point 76% of Americans supported a public option, why would these private companies risk more wrath by jacking rates up so significantly. Keep in mind we still have unemployment over 10% and people are struggling. Isn't that putting even more gasoline by the fire? Ironically, gasoline prices came crashing down when the economy faltered.
Are they so brash to think they can effectively say "pay it and be happy"? Wouldn't the wise play be to keep things in moderation until the legislation (or not) is finalized and then take the next profit making step. Admittedly, I am not a policy wonk and there are probably holes in my argument but I would love to hear what people have to say.
Last note, I was part of the "kill the bill" crowd when Lieberman pulled his flip flop. I have heard the argument that it is still worth pushing through but I am not convinced and very frustrated. What are we actually doing to hack at the root of the problem? A mandate with no public option, no trigger, no medicare buy-in from 55. Anti-trust? No. Medical loss ratio? paltry and flexible. No upward limits. Taxes on the middle class for cadillac plans? Couldn't we do all the "good things in the bill" that so many people talk about one by one without a mandate?
If Obama implores us to not let "perfect be the enemy of the good" could we have him explain when in his mind the good is no longer good? A huge expense for which will end up being best for the private HC companies. Obama said early on that "I own this one" and I'll never forget that.