Comment on Yu's "Insurance" blog

Yu's posting "Will insurance companies be able to compete with our government? Maybe not but should government even come in the market?" was very intriguing and mentioned key areas affecting our economy today. He argues in favor of the government backing out of the insurance industry, leaving the market to those firms that specialize in providing insurance. However, I choose to disagree. Our government is a body composed of various units that are designed to specialize in multiple areas. Its composition of those units makes it a stronger player in this health insurance "arena" in my opinion.

Yu gives great examples on why the cost of health care continues to increase. Yes, defensive medicine is one top reason, but there is another major contributor; it is the uninsured. In 2006 alone, the uninsured totaled up to 49 million people. Amongst those without insurance were elderly people, those with illnesses, people who are in between job and no longer under employment security, and those between the ages of 18 and 24. Yes, the last group is us, college students. Each of these categories in their own way explain why the government is necessary to help fix this health care situation. Let us examine each individually.

1. Elderly- The article that Yu referenced, "http://www.nytimes.com/2009/03/30/opinion/l30health.html", is composed of various letters with varying opinions about whether government programs, such as Medicare, should be in existence. As a granddaughter, I take notice to the benefits of Medicare firsthand as I assist my grandmother in improving her health. With Medicare, she is able to have routine check ups and purchase medicine, all under coverage and at a reasonable price. In the event that Medicare did not exist, for my grandmother to attain such a coverage would be extremely expensive. An 80 year old woman coming to purchase insurance....anyone can see that she wouldn't be able to afford it.

2. The Ill- Following in the same routine as the previous example, where an 80 year old woman would have to pay an expensive premium due to her age, an ill person would have to pay an expensive premium due to their health condition. Under both circumstances, insurance companies look at insurability and the probability of the insured being a high cost. People with illnesses have more doctor visits, more medication, and higher bills. Insurance companies would have a field day with a person in this condition. The government is proposing a national health care system. This would provide adequate health coverage at an affordable price. Yes, it may have some problems, but I think those with illnesses would rather have the government protect them than private insurance companies seeking a profit.

3. People in between jobs- During this economic time, many workers have been laid off. Not only does this mean no more income, but it also means that benefits are suspended, health care included. With the stimulus package under President Obama, those who have been laid off would receive assistance (up to a certain percentage) for a specified period of time. This is to keep those former employed persons from having to go without coverage for them and their families. If we do not want government programs like this to exist, then we're implying that we'd rather have thousands of laid off workers go without health care OR run to insurance companies, who will take advantage of the unfortunate situation and vulnerable people.

4. People between ages 18 and 24 - In doing a paper last Spring, I came into some statistics about the uninsured. From the 49 million uninsured reported in 2006, 29.3% of those were people who fell in this age range. After doing some research, a large population of that age group were students, people like you and me. High cost and no longer being accepted under parents' coverage were the two top reasons this demographic went uninsured. As an upcoming graduate living in this economy, jobs are like gold. Once you find it, you keep it and cherish it. Unfortunately, not every graduate will have that opportunity as quickly. The government having programs offering health care at an affordable price is what this category needs. We're not asking for handouts, just some help.

Medicare and the government programs in that likeness are not "gimme" programs. They are constructed to pull this country out of old and unresolved situations. Health care has been an ongoing issue for many years, even decades now. If the government pulled back now, we're leaving the entire market to be handle and rectified by insurance companies. Yes, they specialize in offering security, but if the government does not provide monitoring in the form of competition, who will?

Sources:
1. http://yu-rmi4350weekly.blogspot.com/2009/03/will-insurance-companies-be-able-to.html

2. http://blogs.usatoday.com/oped/2008/04/wasted-medical.html

3. http://www.nytimes.com/2009/03/30/opinion/l30health.html?_r=1

4. U.S. Census Bureau. Income, Poverty, and Health Insurance Coverage in the United States: 2006. Aug. 2007. 24 Jan. 2008. <http://www.census.gov/prod/2007pubs/p60-233.pdf>