January 26, 2010 08:23 PM UTC

"Coverage Denied:" What happens when the Feds take control, directly or through funding levers?

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• by: CoalCreekWildfire

Our medical system is in trouble in lots of big and small ways.

My health insurance premium climbed 13% this year (COBRA). That is almost five times the 2009 inflation rate of 2.7%. (1)

Yet health insurance profits are not particularly high, ranging from 2% to 4%. (2)

Compare that to Apple at 16% (Net Income after Tax/Total Revenue). (3)

So where does the money go? I have a good family plan largely paid for by my (ex-)employer. We have lots of medical needs and prefer gold-plated care: the best doctors and the best drugs. The co-pays and deductibles are relatively small and, thanks to favorable tax treatment and an FSA, subsidized by taxpayers. I’m happy.

Nonetheless, I regularly cross swords with the cost control people. I used to be able to talk around them but not anymore. They have become noticeably tougher. I would love to have the state legislature defang them.

This is my worry about universal health care. Our state legislature can pressure Aetna and Kaiser. They are powerless against Medicare or federal control of Medicaid funding. We need two Patty Schroeders and 20 years for them to get entrenched. Only then do we have a chance of not getting screwed.

(1) Annual Inflation Rate Chart (2000-2009)(viewed 1/25/2010 14:25 MT), http://www.usinflationcalculat…

(2) The American Catholic, Excessive Health Care Profits (8/3/2009)(viewed 1/25/2010 14:31 MT), http://the-american-catholic.c…

(3) WSJ Market Data Center Annual Earnings for AET and AAPL, viewed on 1/25/2010 15:08 MT