This past week a chorus of angry politicians as well as a majority of Americans became outraged over the $165 million that went to pay bonuses for executives working for the ailing financial firm, AIG.
It would seem from the uproar that most believe that it is not the job of the American people to support companies, either bonuses of executives or company profits. And yet if we stay with a private system of health care that's exactly what we would be doing! Our health care system is driven by the market, predicated on the profit motive. The myth is the private health care companies seeking to maximize their profits will compete and, therefore, drive down costs. In practice that theory does not work. Profits for the top 17 health insurance companies rose 114% during the years 2000-2004. In this same period, the ranks of the uninsured grew by six million while health insurance premiums rose 60%. One way that insurance companies maximize their profits is by denying coverages to those with pre-existing conditions and selectively insuring the healthy while charging higher premiums for the less healthy.
Single payer saves money by reducing administrative costs and facilitates control over cost because of an administration that is centralized.
Just last week the American Legion and ten other veteran organizations fiercely opposed the administration's proposal to force private insurance companies to pay for the treatment of military veterans who have suffered service-connected disabilities and injuries. This proposed requirement for these companies to reimburse the VA would not only be unfair, said the Legion, but would have an adverse impact on service-connected disabled veterans and their families. The Veterans fought back and won, keeping their current taxpayer-funded health care system. Let's take our cue from the Veterans.
The American people must decide: subsidize the health care company profits, risk discrimination for pre-existing conditions, pay top dollar for prescriptions or, on the other hand, support single payer for improved health, free choice of provider and portability of coverage.
The choice is upon us now. Our outrage at any plan other singlepayer should be twenty-fold that which we expressed toward the bonuses at AIG.