Comment Re:Surprise move? (Score 1) 1505
This is not health care. This is insurance. They are not the same. Insurance is a risk reduction strategy for preventing catastrophic loss of net worth.
They are the same thing at a national level. The healthcare provider/government must use the same risk management strategies as an insurance company does. They must have a predictable budget to pay out for all the flows. The budget is derived using the same mathematics an insurance company uses.
The government has several advantages over private insurance. The most important of which is that a competitive insurance industry raises costs for everyone involved, with mathematical force. The pool of risk is carved up, the pools' predictability declines, so they have to tie up more capital (at the cost of capital) to potentially pay claims, etc. And also, each company represents an administrative cost sink. In the limit, consider a world where everybody administers their own "competitive" health insurance plan. They would need to save up hundreds of thousands of dollars, just in case they get a 1 in 100,000 case of cancer.
Going off on a tangent, I am reminded of the phrase "There's no such thing as a free lunch." I find that people cling on to their first interpretation. Yes, we will pay for our lunch. But there is an important question to be answered: is the lunch deployment mechanism the cheapest one available for the quality of lunch we want? If the answer is no, we should find a new lunch deployment mechanism. Arguments for competition do not apply to insurance as it is currently structured, because the industry does not satisfy the competitive market axioms.
Read Article 1, Section 8 of the US Constitution.