Additional Cost of Health Care

The big knock against private insurance is that profit is immoral.  “How  can you make money off other people being sick?”  That’s all we hear from the Leftists when it comes to this plan.

The thing is, these people have no clue, ZERO, about the role that profits play.  Profits, see, are the thing that incent “better behavior.”  If you have a lemonade stand and are making stupid money, I am going to start my own lemonade stand.  And how am I going to make money or steal your customers?  I’m going to have to challenge you on price or quality.  Maybe both.

THAT’S the power of profits.  When it comes to making sure the public is getting as good a deal as possible, you have to make sure that the incentives are aligned as such.  If you want to have the lemonade drinking public better served, you can use lots and lots of tools and regulations and edicts.  Or.  Or you can allow for free market and the profit signal.

Oh, the other benefit of those who like to make profits?  They don’t like to see their money just flushed down the toilet.

WASHINGTON — The government paid more than $47 billion in questionable Medicare claims including medical treatment showing little relation to a patient’s condition, wasting taxpayer dollars at a rate nearly three times the previous year.

Excerpts of a new federal report, obtained by The Associated Press, show a dramatic increase in improper payments in the $440 billion Medicare program that has been cited by government auditors as a high risk for fraud and waste for 20 years.

For you Leftists out there; that better than 10% just in WASTE.  Insurance companies bring in about 2-3% in PROFIT.  That’s 3-5 times the difference.  Talk about waste.

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