Nothing is more frightening than a bunch of Washington, D.C., politicians/lawyers attempting to interfere in free enterprise, especially when they know nothing about the subject. In this case it is health insurance. It is obvious that none of them has ever heard of adverse selection.

Adverse selection can apply both to health insurance companies and the public attempting to buy their product. Health insurance, like fire insurance, is a risk business. A fire insurance company can refuse to insure your house if the bathroom is on fire. Everyone understands that. A health insurance company can refuse to insure you on an individual policy if you have cancer. Here is where the understanding ends and liberals go nuts.

If a health insurance company raises your premium you can “select” against them two ways. If you are healthy, you can go to another company. If you have become unhealthy, you can stay with the company, leaving it with a lot of unhealthy, expensive clients. Adverse selection.

With President Barack Obama’s unaffordable health care fiasco, young people will choose to pay the fine instead of buying into the plan, knowing that if they ever get sick they can buy into the plan without getting rejected. Adverse selection.

Not only will the healthy not be paying premiums to build up a reserve from which claims are paid, the plan will end up with a lot of sick people, forcing the Obama plan to raise premiums – something we predicted.

During my 40 years selling health insurance, I have always contracted with well-reserved – filthy rich – companies. I have never had to call anyone to tell them there was no money to pay their bills.

I truly believe that Obamacare will collapse upon itself – unless the Republicans get the courage to end it and let free enterprise prevail.

Joel Olinghouse, Hamilton

More from missoulian.com

(11) comments

Tim Huffman
Tim Huffman

The insurance brokers I've talked to about Obamacare understand the inefficiencies of health insurance better than anyone. Even if they don't support single payer they will tell you that the larger the client pool the better. They will also tell you that the government is already protecting insurers against adverse selection through Medicare. Not for nothing, the government also protects insurers with federal flood insurance and FDIC. A "free market" it its not.

lightninsam
lightninsam

Dana Milbank-----"According to Glenn Kessler, The Washington Post's fact checker, there were 37 votes to scale back Obamacare before two votes Wednesday in the House. But those 39 don't include the Senate, where Reid's office has documented 28 votes, all but a couple in the form of Republican amendments. This might explain the new findings that Congress is holding more votes than ever but passing fewer bills"----What are "they" so afraid of.? They've proven that they aren't concerned with doing anything that might benefit US.......Are they afraid that ObamaCare might actually benefit US?

lightninsam
lightninsam

If Repubs. KNOW that ObamaCare is going to be an embarrassing failure, why would they want to kill it? A failure that gigantic could be used politically against Dems. for decades. ...If it's successful=popular the Repubs. will look like uhhhh, Repub. have always looked on social issues.... Conservatives have NEVER been on the right side of history on any issue.Why should we expect this to be the 1st one?

jus wundrin
jus wundrin

Even the once supportive unions are pushing it away.

BR
BR

Comment on quote: "During my 40 years selling health insurance, I have always contracted with well-reserved – filthy rich – companies."

Adverse selection.

open mind
open mind

Free enterprise got us in the mess we are in now, which necessitated the development of an affordable care act in the first place. Those who chose to ignore the rationale behind the act, that uninsured citizens who use emergency care and then are unable to pay for it are causing havoc with the overall national budget, will continue their insistence that this is a bad idea. If that's the case, then what is their solution? Don't get sick, and if you do, die quickly?

The_Boneshackler
The_Boneshackler

You make an excellent argument for a single-payer system. Our current system is anything BUT 'free market'. It is based on monopolies, collusion, price-fixing, doctor kickbacks, Big Pharma subsidies, denial of care, and a vast bloated bureaucracy. O'RomneyCare was written by the insurance companies to ensure that they remain firmly in charge of the corporate death panels that decide whether or not you get to live or die while the top executives loot $Billions from the outrageous premiums.

jus wundrin
jus wundrin

Please name one gubment program that isnt based on monopolies, collusion, price-fixing, kickbacks, subsidies, denial of service, and a vast bloated bureaucracy? This is what youll get with your single payer system too. Id rather have a choice.

Objective observer
Objective observer

So would you rather of a choice of insurance companies that can deny you coverage based on pre-existing conditions.

Objective observer
Objective observer

Social Security. SNAP.

AL KIPF
AL KIPF

The "pre-existing condition" lie has been dis-proven countless times. When rolled out nationally last year, less than 1k people applied for coverage.

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.