We are frequently reminded that there is a health care crisis in America with more than 47 million Americans lacking health insurance. Thankfully, President-elect Barack Obama has the solution: government-managed, universal health care.
But is there something special about health insurance that makes it crisis-prone?
We never hear about a looming home insurance crisis or spiraling costs of car insurance. But if the federal government chose to create such a crisis, could it be done?
Just imagine that our political leaders resolve that automobiles are vital to the livelihood of the American public. They provide the necessary transportation for getting American workers to and from their places of employment; therefore, employers ought to provide car insurance for employees and their families.
So Congress writes the bill, the Senate adds a few appropriations, the president proudly signs the legislation and America cheers. Before long, auto insurance is restructured to cover routine maintenance and service in addition to vehicular accidents. All of this for a monthly premium and a $10 co-pay.
Car insurance will cover the cost of an oil change, tune-up, new tires, brakes and belts. Whatever work the car needs will be conveniently covered under the employer-provided car insurance program.
Soon thereafter, people are likely to stop asking, “How much will the new fan belt cost?” and “Do I really need the passenger window to roll down?”
Why should we care what the mechanic charges? All we have to do is hand over $10 and the insurance pays the rest.
Oil changes will be done every 1,000 miles instead of 3,000 miles. Parts will be replaced instead of repaired. And monthly visits to the mechanic will be an industry standard. All of this in the name of preventative care.
The influx of customers means waiting periods will extend to days, even weeks, for minor repairs. Costs to the auto service industry will reach new highs that exceed inflation standards. Competition and comparison shopping will cease as car-care providers are not pressured to lower prices. The need to buy more equipment and hire more employees to accommodate the increase in business will drive costs higher still.
Insurance companies will have to raise premiums as car-care providers increase their rates. Naturally, some hardworking and deserving people won’t be able to afford it. So politicians will roll out new government programs – Vehicaid and Vehicare – to help disadvantaged American drivers. As deductions from taxpayers’ paystubs swell, so too will the number of the disadvantaged unable to pay the rising premiums and co-pays.
As a result, car-care providers will have to increase their administrative workforces to manage the red tape of the new government-sanctioned programs and regulations. Windshield-wiper blade replacements will cost $75, oil changes will reach $200 and additives for longer, smoother engine life will become a $200 billion industry.
Soon, political leaders will begin to speak out against the atrocity. They will speak of Americans’ “right” to affordable car insurance. The Census Bureau will report that 47 million Americans are without car insurance and politicians will rally voters with a new universal car-care plan.
Now imagine that someone steps forward and suggests America will be able to afford car insurance again if the government reverses regulation and lets normal market conditions exist.
How do you think people will respond to such a “racist” and “bigoted” remark?
Now that we see just how easy it is to start and maintain an insurance crisis with a little government control and consumer fear, we can see that America does not have a health insurance crisis. America has a government crisis.
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