Wednesday, July 23, 2008

Insurers Get a Beating in Columbus 

Don't try to make a profit in Ohio

By Marc Kilmer

Filed As:  Health Care

America's Health Insurance Plans, the health insurance industry's trade group, launched its first "listening meeting" in Columbus, Ohio, yesterday. From news reports, it heard from a bunch of people who have real concerns about health insurance but don't know much about basic economics. And a few doctor showed up to blast them, too.

From the tone of the news reports, the folks at the meeting were upset that insurance companies make a profit. Since many health insurance companies are non-profit, I find that interesting. Regardless, the hatred of profits indicates that a lot of people seem to think that companies can only make money by somehow immorally taking it from consumers. I guess people think these companies should offer their services and not make any money doing it. The notion that the only way companies make profits is by offering services and products that people want seems to be an alien concept.

Of course, there are problems with the health insurance system. These companies don't necessarily make a profit because those they insure like their services. In general, those who are insured aren't the ones paying for the insurance. And in some states (such as Maryland) government regulations have driven many insurers out of the market, depriving consumers of choice. But the government subsidies and regulations that have distorted the system to such a great extent aren't being discussed. Instead, people think we have some sort of "free market" in health care and call for even more government control over our health decisions.

The doctors got into the act, too. The head of the Ohio State Medical Association took this jab at the insurers: "While physicians and patients have been struggling to maintain access to quality care, health plans have focused on protecting their profits." I guess doctors don't care about making money, huh? Those looking for health care in Ohio should just go to doctors and refuse to pay for service. After all, doctors aren't concerned about "protecting their profits."

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