Hi, its me, your friendly neighborhood devil’s advocate again!
I pose the above question in response to a well-reasoned argument by a well-known commentator, Dean Edell. He’s an MD-turned-talk-show host. Very smart and reasonable guy so it’s hard to argue with his reasoning.
His argument is that he does not believe a government run option that “competes” with the private health care system will necessarily bring down the private system and we will not be on a single payer system as a result. He doesn’t advocate a government option per se, but doesn’t rail against it either. If a single-payer system is what the government is surreptitiously aiming for, that is a different story, but for the time being, let’s consider Dr. Edell’s logic.
He uses the analogy of the post office vs. FedEx and UPS. The post office could put FedEx and UPS out of business if it wanted to. Just match services (which it attempts to do anyway), drop prices and subsidize operations from taxpayer revenue (surreptitiously, of course). This would work for a little while, perhaps long enough to put UPS/FedEx out of business.
So why hasn’t the post office eliminated UPS/FedEx? Basically, it would be much too costly and would be a useless exercise. For one thing most obviously, the postal service is not a very efficient avenue through which the government can gain ultimate control of the people (the ulterior motive, of course). Needing Uncle Sam to heal us is a much more efficient way. Secondly, there are simply too many smart entrepreneurs for the postal office to compete with (none of whom work for the USPS). Ultimately, private mail services would return in any case.
Thus, it is Dr. Edell’s argument that the fear of government destroying the private health care system is overblown. The old addage “you get what you pay for” will always ring true. I would rather pay twice as much for a car I can rely on instead of a Yugo (or soon-to-be Government Motors hybrid). Similarly, private insurance will not go away – even if it does it will come back in some form ultimately. It will most likely remain and we who actually want medical assistance will pay for it. Others will see what they have bought (nothing) and opt for the more expensive option – private health care.
Obama argues that the public option will force private insurers to become more efficient. He is being disingenuous as we all painfully know. The artificial pressure of lower costs will only lower the overall quality and quantity of care. Private insurers will indeed feel even more pressure to become more efficient – they already do – so Obama has a convoluted point. But there will be those providers, like the Mayo clinic, who will be all the more highly regarded and we will willingly pay more. Obama wants to “level the playing field”, but he will only further separate the haves from the have-nots.
Private insurance will not go away.
For your consideration and comment.
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MN Prager Discussion Group 
Your devil’s advocacy is a useful device. I do hope there is some truth in what you are positing, but I think it depends entirely on the designs of the administration. As you suggest, Obama is disingenuous and I think total control over health care is the ultimate aim. Still, if we can take him at his word, you make a good argument. I think though that the necessary result of throngs of people moving over to the government plan must necessarily result in a dramatic increase in costs for the private market.
James,
Thanks for your response. I wonder also if cost-shifting wouldn’t eventually go away. As it is now, private insurers cost shift to make up for low contract prices with Medicare/Medicaid.
Let’s assume PBO gets his way.
The consequence of a single payer system – rationing of services – will become painfully obvious to everyone eventually. Sooner rather than later I would argue. What will happen then?
Personally, I will be looking for an insurer/provider who has broken ranks and is an independent like Mayo clinic. Instead of being forced to adhere to the government program, it will take my money and provide me with the medical service I require. (in other words, I’m going to opt for the BMW and not the Yugo).
Yes, one will have to pay even more in the private market – the opposite goal of the Obama administration. One might argue that Obama will have total control and no one can break ranks. This is the case in Canada. However, Canada’s constitution is not the US constitution.
I listened into a call-in to the Thom Hartman show (yes – I monitor enemy transmissions on occassion) and he succinctly illustrated the left’s position. The caller said that we have great health care in this country. Thom said – rather sarcastically:
“yeah, for the rich!!”
What he really means is:
“yeah, but you have to pay for it!!”
Note to all….There will never be broken ranks allowed when inevitably, Left Wing American governments pass laws and are secure in the courts to forbid private enterprise involvement in health care or any other service they deem are in the public interest.
America has never had a Leftwing as autocratically secure in its rule than the one at present. Never. With all the phony love Lyndon Johnson conveyed in his devotion to his people, the majority of the Democrat Party in 1965-1967 was consisted of Church going Americans, proud of their country, devoted to private enterprise and had no opposition political Party plotting sabotage at every front to destroy not only its political enemy but the nature of the country as well.
American courts were not extensions of the Democrat party in the 1960s; neither were the media, Hollywood, television entertainments, ministers of the standard churched, teachers and preachers of our educational instutions, trial lawyers, or the rich. as they behave today.
Moreover, President Johnson was an American and was devoted to strengthen America…..Barack Hussein Obama is not an American and is working to diminish it.
As befuddled and petty as Jimmy Carter was, and I believe he ranks among America’s worst, he knew he was holy first and an American second, but at least he was an American…