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Obamacare – Void of Common Sense

One of my biggest complaints about Obamacare is the designers seem completely unaware of the actual purpose of insurance. Insurance is designed to pool risk. Insurance companies gather people together who fit a particular profile, assess the likelihood they are to experience the insured-against-event, then charge each person as set amount. The payment is designed to be added to all other payments in the group. This pool of cash is designed to pay the expenses (as outlined in the policy) of those few who actually experience the calamity (illness, accident, act of God) as well as the employees and other operating expenses of the insurance company.

Given the purpose of insurance, you cannot insure someone who has already experienced the calamity. You can simply give them a taxpayer-supported check (welfare) to cover their costs.

If you were looking for personal or business car insurance, would you pick three people who had just had auto accidents to join with all four of you equally sharing the pool to cover the accidents they’d already had?

If you were looking to share risk and costs with five other people for group health insurance, would you select two cancer patients, a diabetic, a drug addict, and someone experiencing liver failure? Then be happy to share costs while you get your annual checkup and cough medicine?

Opposition to Obamacare isn’t about being mean or uncaring for those who are sick. It’s about common sense. It’s about math. It’s about definitions.

Is is about the fact that when people don’t pay for (or see the cost of) things they use, they use more. It is about the fact that paying for something that is a known quantity (like an existing illness, a burned down house, a totaled car) is not insurance. It is acknowledging that there is no way to pay for all the medical care that everyone in the US (and why stop there is we’re just talking about compassion???) wants particularly what they want when it’s “free.” It’s about the fact that even with all the administrative denials about “death panels” you cannot logically escape the obvious fact that someone, somewhere in the administration has to decide who gets what health care and when. It’s not just a free-for-all-take-what-you-want affair.

Next time you’re looking for health care or home owners insurance or business insurance quotes, remember that. Better yet, next time you’re voting, remember common sense.

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