Based on the statements of both Republicans and Democrats at a Congressional hearing the other day, you’d think that they appreciate that corporate health insurers are unable to contain costs or guarantee that people get the care they need. Members were frustrated at the ever-rising cost of health care, as Reed Abelson reports for the New York Times. The insurers, who they questioned, naturally refused to accept blame.
Mountains of evidence show that public health insurance, like Traditional Medicare, is far more cost-effective than corporate health insurance, while guaranteeing people needed care. Moreover, our federal government has never been able to hold corporate health insurers accountable for their bad acts in meaningful ways, perpetuating the bad acts. All this notwithstanding, most Republicans and Democrats have not been willing to offer Americans even the choice of public health insurance, let alone universal guaranteed health care.
At the hearing, members of Congress focused on high executive salaries, which are insane but don’t get to the heart of the problem: Financial incentives to drive up premiums and deny care. Corporate health insurers need to placate Wall Street with ever higher returns. As much as members of Congress might want them to keep Americans’ premiums and out-of-pocket costs down, insurers have a disincentive to do so.
Lower corporate health insurer CEO pay will not fix the insurers’ financial incentives. CEO pay is a red herring. Insurers will charge high premiums and deny care regardless of how well their CEOs are paid. At a bare minimum, Congress’ focus should be on giving Americans the option of public health insurance and forcing insurers to compete with a public health insurance option in the ACA. Congress should also be educating the public on the overwhelming advantages of a national health insurance system for guaranteeing them the health care they need at an affordable cost.
Without premium subsidies, the cost of corporate health insurance through the state health insurance exchanges created by the Affordable Care Act has tripled for millions of Americans. And, cost aside, the coverage tends to limit people’s access to high quality providers and prevent them from having their care covered when they are traveling or away from their primary residence.
And, while it is true that health insurance costs rise as health care costs rise, unlike the federal government, insurers are unwilling or unable to contain those costs. Moreover, a fragmented and complex health care system drives up costs further. So, if Congress truly cares about affordability of health care for Americans, it should offer them a public health insurance option.
Health care affordability has been a top priority for Americans for the last two decades. The hearing reflects how much Republicans and Democrats want people to know that they too care about health care affordability. But, historically, their legislative efforts reveal how little they want to do about it. Offering everyone Medicare is a cost-effective path forward that they reject.
Here’s more from Just Care:
- Poll: Republican candidates could be hurt in mid-terms if they don’t extend ACA subsidies
- To save money, invest in Medicare not Obamacare
- Majority of Americans support a public health insurance option
- Medicare for All is entirely affordable
- Poll: Health care costs are a top economic priority for voters
