DON’T BE FOOLED! A PROVEN U.S. TEST CASE ON OBAMACARE

Written by Heyward SmithcloseAuthor: heywardsmith Name: Heyward Smith
Email: jnjn1024@gmail.com
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About: See Authors Posts (1) on October 28, 2009

The controversy surrounding President Barack Obama’s Health Care legislation currently pending before Congress, largely focuses on the so-called Public Option.   This is cornerstone of a plan that creates government run health insurance that competes directly with the private sector.

The nation should look to Florida to see the effects government “competition” can have on the private sector.

On January 25, 2007, Florida Governor Charlie Crist signed the Insurance Industry Accountability and Consumer Protection Act into law.  The bill, trumpeted as “relief from skyrocketing property insurance rates,” was really the most direct government intervention in the private sector in the state’s history.  For the first time, it allowed the state-run Citizens Property Insurance Corporation to compete directly with private insurers.  We were promised lower premiums, more flexibility and better competition.

Sound familiar?

Since the insurance “reform” was passed in Florida, let’s take a look at what has happened to the private market.  Allstate, Prudential and State Farm have completely ceased issuing property insurance in the state.  In their most recent session, the Florida Legislature passed bipartisan legislation designed to ease the most onerous portions of the 2007 legislation by allowing insurers to charge real actuarial rates. This would have paved the way for the largest and well-capitalized companies to return to the market.  In fact, State Farm had placed their withdraw plans on hold saying they would reassess their situation once the bill became law.

Governor Crist had other ideas.

He vetoed the bill claiming it was unfair to consumers and the small companies that are now writing policies throughout the state.  Floridians are now relying on those companies for coverage whose financial health has yet to be tested with a major hurricane striking one of the state’s large metropolitan areas.

The backbone of insurance in the state is now the government’s “public option.”  Citizens, now the largest insurer in the state, is underfinanced due to below-market premiums on the most vulnerable properties and taxpayers will asked to pick up the tab for the shortfall when a storm strikes.

Governor Crist is so proud of his “reform” he wants to bring it to the entire country.  He is an advocate of a National Catastrophe Fund that would virtually assure government takeover of property insurance nationwide.  New Yorkers can look forward to being on the hook for California earthquakes and Floridians can pass the hat for Iowa floods.

US Senator Charles Schumer has stated the Public Option in health care is necessary to “successfully keep private insurers honest.”  Sound familiar?  The President and his liberal minions in Congress keep telling us that this is not a Trojan horse designed bring a Canadian style, single-payer system in through the back door.

Don’t be fooled!

Employers everywhere are looking for ways to trim costs and stay profitable in today’s struggling economy.  When a government-sponsored plan becomes available, it will be easy for companies to jettison one of their largest single expenses, their health plan.  Once the government rolls are filled with Americans, the private market disappears.

With the taxpayers now footing the bill and the budgets being squeezed, there is only one way to reduce costs as drastically as the President has promised: ration care.

In Canada, wait times for elective surgeries can be months and that is assuming a government bureaucrat deems your condition worthy and treatment is approved.  Need hip-replacement at age 75?  Sorry, you are too old.  How about a walker and some aspirin?

Floridians have seen firsthand what happens when the government involves itself as an equal competitor in the private insurance markets.  Governor Crist brought it to Florida’s property owners and now President Obama wants to bring it to a doctor’s office near you.

Don’t be fooled!

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Heyward Smith is Executive Director of the Everglades Legal Foundation (www.evergladeslegal.org).