If Obamacare Saved $1.5 Billion Last Year Think What Single Payer Would

by Egbert Willies December 6th 2012

The Huffington Post article titled “Obamacare Health Insurance Rules Saved Customers $1.5 Billion Last Year: Study” should leave everyone scratching their heads. Obamacare ensures that at least 80% of premiums for individual policies and 85% of premiums for group policies are used for medical care. As stated, the bill has so far saved $1.5 billion simply by commanding a behavior by insurance companies. They wasted (stole) less of citizen’s premiums. They became more efficient.

What is the purpose of medical insurance, from the options from dpchealthcare.com to the more well known varieties on the market? To be more specific, what should be the purpose of medical insurance? The answer is simple. It is for citizens to pool a few dollars together to build a large amount, so that the unknown few who will get sick at any time, can get medical care they can afford without being bankrupted. Especially as most American’s barely have private health insurance policies, and if they do they are incredibly expensive.

America is a capitalist country. Capitalism as tool can be used to efficiently allocate resources throughout a real free market. All resources however are not equal. The efficient allocation of resources in healthcare can have very inhumane consequences. In fact humaneness demands that as a society there must be exceptions. Does society invest in researching diseases that affect a very few, or build parks for the pleasure of thousands?

For profit insurance companies are one of the largest inefficiencies and evils within the healthcare system. Having a multitude of insurance companies require several CEOs, several Presidents, several different advertising campaigns, several computer systems, several accounting systems, etc. Doctors are bogged down with several different forms from a myriad health insurance companies. Each company must make a profit to ensure dividends for its shareholders. In order to do so health insurance companies must deny coverage, rescind coverage, or minimize coverage. What is evil within this scheme is that health insurance companies must bastardize the health insurance pool, by insuring only healthy people to maximize profits by minimizing the potentially sick.

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If Obamacare Saved $1.5 Billion Last Year Think What Single Payer Would