5 Responses to “Is The Health Care Insurance Industry Essentially A Monopoly?”

1. Dawson Lives Says:
   August 7th, 2009 at 9:57 pm

   This one is not as obvious as it appears to be. There is a very little known law in this country that goes back to the 1940′s or so. Basically, Insurance companies are required by law to hold a certain amount of their policies in cash reserves to pay out claims. In some instances with really big insurance companies, Some of this is allowed to be in liquid assets. Over the last 20 or so years, a lot of these companies have changed hands either through corporate takeovers, large stock shifts, or outright sale of the company to corporations and individuals. In a lot of these instances these funds are raided by the new owners to cover other losses. This usually goes unnoticed by everyone except a few accountants and CEO’s. This is one of the quiet little things happening in the background over the last 20 years or so that has led up to our current money crisis in this country. AIG is a prime example of what happens when these “raiders” hit the end of the rope. They have used up all the cash reserves and there is nothing left to operate the business on. Yes, this is a violation of federal insurance regulations, but, for years and years there has been no real oversight in this industry. Also insurance companies have reported record profits consistently for the last several years. These profits went into a lot of greedy pockets leaving nothing to run the companies with. The end of the rope being Katrina, Rita, Ike, and all of their cousins that have hit the Florida Peninsula. All of these being big payouts for claims which wiped out the little bit of reserve that was actually on hand to pay out. This is why everyone’s rates are so high and there seems to be no real choices for a cheap rate with anyone. All of the cash has been siphoned off. This is also why claims are getting so hard to collect.

2. kittcars Says:
   August 8th, 2009 at 3:05 am

   Without a doubt. As an industry they ignore the regulations that allow them to exist.
   My personal solution is to outlaw all FOR PROFIT insurance.
   Use Kaiser as a model and build upon the extremely well thought out process of coverage methodology they use.
   One of the biggest differences you would see immediately is the lowering of premiums to about half what is seen in the for profit businesses.
   You would also see the end to $60000000 dollar salaries to the CEO’s like what the CEO of United Health got in 2006.

3. .*. Says:
   August 8th, 2009 at 5:59 am

   You need to check out the definition of monopoly. If the wise O gets his way, the govt will be the only one in the insurance industry and that will be a monopoly.
   Currently, there are numerous insurance companies owned by many different people so there is not current monopoly. Socialized medicine will create a govt monopoly

4. TAT Says:
   August 8th, 2009 at 9:30 am

   No, but that’s Obama’s most vivid dream
   If you don’t like your doctor or insurer, move to a different one. You still have that choice. Choice is a good thing, and something you won’t have under Socialist Health Care.

5. Common Sense in Exile Says:
   August 8th, 2009 at 4:27 pm

   No, I dont think so we still have the option to choose which company we want

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