Obama’s Plan is a Gift to the Health Insurance Industry

Healthcare Reform is More Corporate Welfare

by Ron Paul

Last Wednesday the nation was riveted to the President’s speech on healthcare reform before Congress. While the President’s concern for the uninsured is no doubt sincere, his plan amounts to a magnanimous gift to the health insurance industry, despite any implications to the contrary.

For decades the insurance industry has been lobbying for mandated coverage for everyone. Imagine if the cell phone industry or the cable TV industry received such a gift from government? If government were to fine individuals simply for not buying a corporation’s product, it would be an incredible and completely unfair boon to that industry, at the expense of freedom and the free market. Yet this is what the current healthcare reform plans intend to do for the very powerful health insurance industry.

The stipulation that pre-existing conditions would have to be covered seems a small price to pay for increasing their client pool to 100% of the American people. A big red flag, however, is that they would also have immunity from lawsuits, should they fail to actually cover what they are supposedly required to cover, so these requirements on them are probably meaningless. Mandates on all citizens to be customers of theirs, however, are enforceable with fines and taxes.

Insurance providers seem to have successfully equated health insurance with health care but this is a relatively new concept. There were doctors and medicine long before there was health insurance. Health insurance is not a bad thing, but it is not the only conceivable way to get health care. Instead, we seem to still rely on the creativity and competence of politicians to solve problems, which always somehow seem to be tied in with which lobby is the strongest in Washington.

It is sad to think of the many creative, free market solutions that government prohibits with all its interference. What if instead of joining a health insurance plan, you could buy a membership directly from a hospital or doctor? What if a doctor wanted to have a cash-only practice, or make house calls, or determine his or her own patient load, or otherwise practice medicine outside the constraints of the current bureaucratic system? Alternative healthcare delivery models will be at an even stronger competitive disadvantage if families are forced to buy into the insurance model. And yet, the reforms are sold to us as increasing competition.

What if just once Washington got out of the way and allowed the ingenuity of the American people to come up with a whole spectrum of alternatives to our broken system? Then the free market, not lobbyists and politicians, would decide which models work and which did not.

Unfortunately, the most broken aspect of our system is that Washington sees the need to act on every problem in society, rather than staying out of the way, or getting out of the way. The only tools the government has are force and favors. These are tools that many unscrupulous and lazy corporations would like to wield to their own advantage, rather than simply providing a better product that people will willingly buy. It seems the health insurance industry will get more of those advantages very soon.


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  • longshotlouie
  • Seth

    I cannot afford health insurance nor do I want it. To be honest, I think people would be more careful about how they treat their bodies if we didn’t have health insurance. It would certainly reduce the number of heart attack patients. Of course, it would be necessary if I got hit by a bus or something. I’ll take my chances.

    What I want to know is how can you tax the unemployed? If they can’t pay, will you send them to jail? FEMA camps? The baby boomer generation is going to have to face up to the fact they will soon wither away. That’s why setting the next generation up for success is so key. Sadly, the politicians don’t know how/won’t do that. They are determined to have everything repeat itself.

  • christine

    Several republicans have gotten together and presented on c-span a new concept of freedom concerning health care insurance.

    (R) Michele Bachman suggest…
    You select the plan, from whatever state you want, the amount of coverage you want, is not connected to your job, is more like how you purchase car insurance, you control it, and is done by large groups we set up ourselves. Competition, free market, doesn’t impose fine/tax on business owners, government not involved.

    Besides Ron Paul, remember the people who think straight and keep them in the senate. We need an Army of them to replace the idiots who are there now!

  • Sean

    The new bill released in the senate wed will NOT have a public option. Instead we will mandate health insurance. I personally think the public option is the less of the two evils. THANK YOU CRAZED TOWN HALL CITIZENS!!

    I believe that mandates are far more intrusive to our liberties than a self ran governmental insurance company, because it wouldn’t be paid from tax dollars and wouldn’t intrude into the lives of those who wouldn’t want it.

    • Sean

      I believe that our liberties are measured more by what all the government forces us to do. At least with the public option, we weren’t forced to do anything.

  • Sean

    The only reason why Obama is now supporting the insurance industry is because of all the town hall meetings. The people don’t want a public option so mandating health insurance is the only alternative that has been approached IN CONGRESS since day 1. I wish Ron Paul would address his views to congress. It does no good to exclude yourself from the legislative process.

  • David Bernard Daniels

    Interesting point. It is certainly not the kind of stenchous dung one hears when reading the Obama aplogists boards which I have been seeing lately. I am sure that Obama’s people feel that many bright green banners of Islam are being planted on the white house lawn when Obama uses his slippery moves to evade the kind of truth Ron Paul reveals.

  • christine

    A little trick in the heath care bill…after 2013, if you have a plan outside of the government exchange, you can keep it, but the health care companies will no longer be able to issue NEW policies outside of the exchange. Looks like a phasing out process until they get to the single payer….. NOT IN AMERICA.

  • longshotlouie
  • Herewe Goagain
  • Daniel Golay

    You’re right about limiting doctor numbers. I was pissed off when I got to U of FL and discovered all the dirty tricks they used to hand you Ds & Fs in preMed courses to discourage you. At football games officials would say on TV – come to UF and be anybody you want to be. I wanted to strangle the Assh*le thru the screen.

    The kicker is all the foreign doctors & dentists getting in thru some back door – look in the phonebook. Infuriating

    That’s ok though – I’m realizing how AMA medicine is bogus bullsh&t compared to alternative holistic medicine. That’s where the real health revolution is starting. If I were a Dr today, I would probably be a defector to natural madicine. That’s where the real healing is.
    Dan Golay

  • VR
  • Ralph Oster

    Did you know that the medical industry controls and limits the number of medical schools, thereby limiting compitition and artificially keeping prices high? They also control WHO gets into medical school. (You must know someone – “good ole boy” system).
    If we simply abolish their control and allow for a free market of schools, physician prices would come down.