Problems with Obama health plan
Over the past couple of weeks we have heard the President say that you are guaranteed to keep your health care plan and your doctor, if and when health care reform passes.
This sounds good on the surface, but the President fails to mention what happens if you want to change coverage or your job.
The provisions of the current health care proposal mention that we will be able to keep our coverage. Those who are currently enrolled in private coverage would be grandfathered.
The problem with this is that private insurers will not be able to attract new customers. Losing existing customers combined with not being able to attract new customers will destroy private insurance.
As customers age, they traditionally have higher health care costs. The carriers will not be able to attract the younger insured, those who traditionally have lower health care costs.
The private health insurance companies will be faced with an aging risk pool, a smaller risk pool, higher health care costs and government competition.
All new employees will have to go the government route for health care. They will not have the option for private health care. The private health care companies do have an option, but I see that failure is the only option.
Marc Johnson
North Aurora