Health Care: When Will Real Competition Be Discussed?

Well, the big health care speech was held last night, with the President speaking to Joint Session of Congress and the Nation.  I was so hoping that August had an affect on the President, and we may hear a new plan.  My initial thoughts as I listened to the President’s speech on health care was…that doesn’t sound bad, hey, he has been listening to us.  I might be able to get behind this.  Maybe his vacation (or 2) did some good.

But (you knew there was a “but” coming), as he continued it became clear to me that he was speaking of the same bills, only repackaged, just the same old stuff.

Here is one example, the public option has become a non-profit plan, an exchange.   This is being framed as competition, just to keep those for-profit companies honest.

The issue being raised is that insurance companies have no competition.   He spoke of some states that have only few companies available from which you can select insurance. Why is that?

Let’s consider:

• There are many insurance companies across the country, I have heard numbers around 1200-1300 companies.
• Insurance plans are not offered across state lines.
• Your company or you can only select from the limited options available within your state.
• Companies with presence in multiple states have to offer different options for each state.  Have you ever wondered why? How much overhead does it cost these companies to manage the different options, which are then included in their costs?

The President’s solution to the lack of competition issue, is not a capitalist solution, it is a government solution–The government sponsored non-profit plan, exchange, public option, whatever it is being called.

Why is real competition between insurance companies across state lines not being included in the discussion?  It has been brought up, but is not seriously being considered.  Why?