OBAMA'S BIG MISTAKE: TO TRY TO DESTROY PRIVATE HEALTH INSURANCE!!

Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

While Canada has a publicly funded system of medical and physician services, life and health insurers play an important role throughout the country in funding health services not covered under government programs. These services include extended health care benefits, dental insurance, travel insurance, disability income insurance and accidental death and dismemberment benefits. Canada’s life and health insurance companies provide over 90 per cent of Canada’s private health insurance, with the remainder provided by some property and casualty companies. In 1999, fully 22 million Canadians had extended health care insurance, 15 million Canadians had dental insurance and nearly 8 million were covered by disability income insurance. Much of this insurance is provided through benefit plans provided by employers for their workers.

Wellpoint, {A COMPANY I WORKED FOR FOR 7 YEARS} (Anthem Blue Cross Blue Shield’s parent company) has put together a very informative report on the cost drivers for health insurance premiums. The dollar bill visual representation that they included is particularly eye-opening, in terms of detailing where our health insurance premiums go. A lot of the report centered around what we already know: health care costs are what drive health insurance premiums. But I was especially interested to read that a full 60% of consumers surveyed thought that profit margins for health insurance companies are more than 20%, and 25% of consumers pegged insurers’ profits at more than 40%!

This is astounding to me. If we look at all industries, only two show profits greater than 20% for 2007 (network/communication equipment, and mining/crude oil production). Further down the list we see “Insurance: Life, Health (stock)”, with profits at 10.6% of revenues.
AFLAC stands out as a recognizable player in the health insurance industry, but their product is supplemental, and not designed to be stand-alone health insurance coverage (and they also focus on disability and life insurance products). From what I could determine, three other companies on the list provide some type of health insurance coverage (but seem to be mainly focused on other insurance products): Conseco, Torchmark, and American National. Conseco and Torchmark both sell supplemental and “a la carte” policies. American National is still a mystery after my few minutes of researching. Their website says that they sell major medical plans as well as accident and sickness plans. But they don’t provide any plan details that I could find, and instead direct consumers to an 800 number to talk to a sales rep. I don’t know for sure, but I’m going to hazard a guess that health insurance isn’t their mainstay if that’s how they’re marketing it.

The industry as a whole chalked up a profit margin of more than 10% in 2007, but that was carried by the life insurance side of the industry. Health insurance companies don’t fare nearly as well when it comes to making profits. Far more of their revenues are eaten up by claims, which continue to grow year after year as health care costs increase, and the Congress passes regulations that demand that previously not covered services be included in the health plans!

Like all of Obama's plans to shape America in his idea of a Utopian socialist country. He has not mentioned, or even considered the unintended consequences of destroying private health insurance by putting in place a National health plan!

My research turned up these statistics about a state larger than many European countries, California. The state has 484 companies that offer disability, long time care and health insurance.
These companies employ 244,000 people and will pay to the state in taxes in 2009-10,2.1 billion dollars! They also have invested 29.2 billion dollars in California municipal bond, and have a payroll that also is subject to individual taxation of 1.6billion dollars! Source: ACLHIC annual report

I do not have the national statistics, but if you admit that on average, most states will have one half the income and one half the investment as California, times 49states. You have some real money!!
And Obama wants to destroy this money making machine for the states and the federal government! Is he crazy?? If you doubt me, just look up how many speeches he made on the campaign trail where he said his objective is a SINGLE PAYER HEALTH CARE SYSTEM TO REPLACE THE INEFFICIENT AND COSTLY PRIVATE INSURANCE INDUSTRY!!

He is either a Marxist or a very dumb lawyer who is getting very bad advice!