This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/12/2010
Whose fault is it anyway?
This is an interesting blog post in BizTimes.com, a Wisconsin-based newspaper. The article discusses the common perception that insurance companies are to blame for the current health care crisis. The author lists several reasons why insurance companies are not to blame. First-health insurers were already in favor of reform to require insurance companies to enroll anyone-regardless of preexisting conditions. Second-health insurance companies were also in favor of place limits of what they can charge for elderly premiums. Third-insurance providers are businesses, trying to maximize their earnings. To victimize them is childish and shows a lack of understanding of financial institutions. While it's true that a reform was needed (although certainly not a complete overhaul), demonizing a for-profit company is ludicrous.
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2 comments:
I've mentioned in class a few times that we draw lines with critical thinking on one side, and uncritical acceptance on the other. The position of these lines isn't always very logical. A majority of people put health insurance companies on the other side of the line, and then drink the kool-aid.
These companies just aren't making that much money. You can't avoid that fact, and its implication that they aren't the problem, unless you're just not looking. A lot of people aren't.
Part of my work is dealing with insurance companies and regularly attending trainings where new and/or updated products are released. There is constant fluctuation in the products and prices because the profit margin for most insurance companies is actually very slim.
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