Obama Health Advisors: Private Insurance Dead in Eight Years
This is former White House health advisors Zeke Emanuel and Jeff Liebman writing in The New York Times:
Here’s a bold prediction for the new year. By 2020, the American health insurance industry will be extinct. Insurance companies will be replaced by accountable care organizations — groups of doctors, hospitals and other health care providers who come together to provide the full range of medical care for patients.
Already, most insurance companies barely function as insurers. Most non-elderly Americans — or 60 percent of Americans with employer-provided health insurance — work for companies that are self-insured. In these cases it is the employer, not the insurance company, that assumes most of the risk of paying for the medical care of employees and their families. All that insurance companies do is process billing claims.
ACO’s have so far done such a great job. NOT!
If the Obama bureaucrats have their way private health insurance will definitely be dead.
I don’t believe private insurance will ever be totally gone. After all, it’s still found in Britain, Australia and New Zealand — all countries with universal health insurance. However, I’m afraid private insurance will become an elite good for those with the financial means to afford it; who are willing to pay for access to high quality care. Employer plans will miminish due to the high subsidies for individual policies in the health insurance exchange. Over time the cost of the subsidies will rise too high. Within a decade or two people will be clamoring for Medicare for All because the heavily regulated plans mandated by the Affordable Care Act will be unaffordable for both taxpayers and consumers.
My outlook is somewhat pessimistic. But many policy wonks believe we are sliding slowly but surely towards a single-payer system of (low-quality)socialized medicine.
Devon, you are absolutely correct, except it might not take as long as you suggest. The “sheeple” will demand government “do something” as the overall debt/deficit problem accelerates.
Who ever will they demagogue then?
No it will be replaced by what they want – a single payer system.
You are absolutely correct Mike. The ACA was designed to achieve the public option, which is what they wanted but couldn’t get the first time. The writing is on the wall so this should not be a surprise!
Love the way he starts out with “I’m going to make a bold prediction”. Nothing “bold” about it. Many of us see Obamacare for what it is–a wholesale government takeover of our healthcare system using the usual statist “incremental” approach.
Unfortunately, private health insurers are all in on the gig as well. They are looking forward to the day when they can make 5% or so “administering” Obamacare (without all the headaches of contracts and squeezing healthcare providers)–just like BC/BS does now for Medicare.
hoads, you said it quite well: It is a statist, incremental takeover.
Also, before the health insurance industry becomes extinct, we will continue to see fewer and fewer new players enter the market.
Insurance companies barely function as insurers?
So nice to hear from observers qualified to comment.
I like the way Hoads said “wholesale government take over”. I too do not believe that private healthcare will be totally extinct, however I do believe that thier role in healthcare will change greatly. I can look at this issue in two ways. It’s great for the people bad for private companies. In my opinion it’s time for a change. Health insurance companies are designed to take more than they give. We need a little balance.
Thank you for wiitrng this! It is so important for women to speak their minds, we have brains, too! I will NEVER understand how someone would object to another person wanting to stress the importance of education. I don’t care if you agree with them politically or not. Let Palin tell my kids education is important, what do I care? The more they hear it, the more they’ll believe it. And on health care reform – the GOP just wants to defeat Obama, not health care reform, and they’ll stop at nothing to make sure it’ll happen. They are spreading lies and untruths, and were called out on it. When the president tells you what is in the reform, that’s what in the reform! You don’t sit there with your arms crossed, rolling your eyes and shaking your head at him. People act as if Obama is some sort of heathen out to get us. I find it pathetic and naive and appalling the way the GOP and conservatives treat our president. He was voted in by the majority. He won, fair and square. Deal with it. Support him. Trust in that he wants what is best for us, our children, and our country. I could go on and on… my point was to say thank you for posting this. I obviously agree with you 100% percent, and will continue to support Obama in every way I can.