Sitting thru my employer’s mandatory benefits workshop reconfirmed my belief that health insurance is institutionalized insanity. There must be a better way.
I’ve never liked the concept of health insurance. It seems wrong to me at the very core. It feels like a perverse form of gambling. You’re putting down all this money against the possibility that you might get sick. If you stay healthy, you lose, and all that money goes to the house. If you’re really lucky, you’ll get sick, and then the house pays out.
If you win, you lose; if you lose, you win. That just seems like a cruel and unusual system.
The chief virtue of group insurance, as far as I can see, is that it helps share the cost amongst the group. That’s great. However, I fail to see how having such insurance administered by a for-profit corporation adds any value to that equation. The profit would seem to derive from either one of two sources: 1) paying employees less than their labor is worth, or 2) taking in more premiums than are actually needed to cover healthcare costs. Both seem blatantly contrary to common sense, which is why I call it institutionalized insanity. It’s better than no coverage at all, better than having to bear the costs alone, but the model seems to have fundamental flaws.
Our current system has many problems. The insurance model is one of those problems.
And that brings me to Obamacare.
I can see that Obamacare might correct some of the most egregious problems with our system. For example, it aims for universal coverage. I was glad to learn via social media that at least one old friend from Bloomington is doing well by the new law, and that makes me happy. For the record, I should note that Obamacare has had no effect whatsoever on me and my family. Thus my musings here are strictly big-picture philosophical.
My chief concern with Obamacare is that it doesn’t seem to move us any closer to sanity. It seems to only invest us deeper in the madness, by mandating insurance for all.
I hasten to add that my impression is based on my admittedly limited understanding of this very complex bundle of legislation. Like with our tax code, that complexity is part of the problem. We’ve got fixes grafted on fixes producing a monster like Frankenstein’s. Few really understand it all.
Of course, simplifying this complex situation would be truly radical, and I’m not sure we have the stomach for it. Nevertheless, let me sketch out my simple idea: I kind of think we should provide a basic level of healthcare for everyone, sharing the cost amongst taxpayers, and then have insurance for whatever is above and beyond that basic level. Insurance should not be a necessity; it should be something extra.
Does Obamacare move us toward that in any way? I don’t see how. If anything, it seems to move us in the opposite direction. We won’t ever move ahead by taking half-steps backward. We won’t replace health insurance as the basic model for healthcare by mandating it for everyone.
Some apologists for Obamacare acknowledge its limitations but say this was the only viable solution. They quote Otto von Bismarck: “Politics is the art of the possible.” True enough, but here’s another way to phrase that same idea: “Politics is the art of creating possibilities.” When people can’t manage to create desirable possibilities, it’s a political failure.
I hope I am wrong about this. Time will tell.