Q.E.D. – the healthcare cooperative is a trojan horse…

…and thinking through the doublespeak is easy.

1. The government funds the set-up of “cooperatives” which, ostensibly, are set up to provide an alternative to conventional health insurance companies. The idea is that the cooperatives would provide a more “cost-effective” alternative to conventional health insurance providers and/or provide a health insurance option to those who are denied coverage due to pre-existing conditions deemed unprofitable to insure.

2. First, it will be necessary to organize, staff and provide infrastucture to the cooperatives as none of this exists now.

  • This opens the floodgates to ACORN-type organizations to begin their own bureaucratic businesses.
  • It takes the pressure off conventional insurance companies to re-consider their healthcare decisions as it can then be said that people have an alternative.
  • Billions of dollars will be used to organize, staff and provide infrastructure – none of which will provide any healthcare to anyone.

3. Once steps 1 & 2 are complete, the process of providing actual healthcare begins.

Due to the bureaucratic nature of the cooperatives, the opportunites for graft and abuse of power will be innumerable.

  • Local activists will demand, and get, coverage for anyone in their group regardless of ability to pay, immigration status or any other aspect not related to the constituency of the activist group. Because the cooperatives depend upon the “largesse” of the government to exist they will have to bend to the will of the activists regardless of the monetary consequences.

4. There will, no doubt, be an Administration-appointed “healthcare cooperative czar”.

The czar will be under political and party pressure to insure anyone who is not conventionally insured. This will result in the czar dictating health coverage policy based on political pressure.

  • The czar’s power will derive from the Adminsitration and funding from congress.
  • The cooperatives may (almost certainly) also find themselves under the authority of the various states and municipalities in which they operate, adding additional layers of bureaucracy and the inevitable corruption which is part and parcel of bureaucracy.

5. When additional funding, beyond the original mandate, is required to offset losses (and it most certainly will be) the only source will be the American Taxpayer. It is possible that “donations” to the cooperatives will be tax-deductible, again effectively resulting in tax increases on everyone else.

When conventional insurers are seen to be “unfairly” causing problems for the cooperatives, such as denying unprofitable coverage and causing the cooperatives raise prices, the government has two basic choices: additonal funding to the cooperatives or mandating unprofitable coverage from the insurers.

  • Every possible “cure” will have to be considered and (depending on who you know, how you vote, or who you pay off) paid for without consideration of cost or efficacy.
  • “Alternative Healers” will thrive and become a huge government-funded industry.
  • The czar will dictate what “appropriate” charges for care and treatement are like Medicare does now. This will result in fewer people entering the medical field, fewer business providing healthcare, testing etc. and Canadian-type waiting periods for service.

6. The result will be that trojan horse is exposed and the U.S. will effectively be in the Universal Health Coverage business which was the intent all along.

At every election, the party which represents the people covered by the cooperatives will have the threat of loss of coverage as their #1 plank. Realistically, who would you vote for if you believed your healthcare hung in the balance?

  • The above point, if accurate, will guarantee a greater divide between the “haves” and the “have-nots” which will result in social unrest at never-before-seen levels.
  • Taxes to cover the shortfall of the cooperatives will have to be raised, but not for those who are actually in the cooperatives.
  • We will be flooded with illegal aliens seeking free healthcare.
  • Some people will have less of an incentive to have gainful employment.

7. Those who currently pay for their own healthcare will be dis-incentivized to continue to do so and will drop it and join the cooperatives.

Steady loss of paying customers will cause insurance companies to find ways to offset the loss of income: more stringent review of coverage, layoffs, closings, etc.

  • The result of the above measures to stay profitable will result in a “virus” which will take down the healthcare industry.

8. Ultimately, the private healthcare industry will fail due to regulation and unprofitability in the same way that private delivery companies like Fedex and UPS would fail if the government regulated what they could do or charge based upon what it took to keep the USPS operating without continued government subsidies. Follow the analogy below:

In this analogy, the  USPS equates to government-sponsored healthcare, private delivery companies equate to private healthcare providers and cooperatives equate to junk mailers.

Junk Mailers cannot survive without the USPS due to the low rates provided them. If the USPS closes or raises rates to achieve profitability, the junk mailers are in trouble. Currently the US government subsidizes the industry, so in effect tax-payers are paying to have their mailboxes filled with junk mail. Ironically, trees are dying every day in order to fill up re-cycling bins to save the environment.

If the government chose to fund a fleet of airplanes to deliver packages without consideration to profitability or efficiency, the for-profit delivery companies would be forced to raise rates or close up shop. If they raise rates, either the public pays more or the service shrinks. If either of those two things happen, the USPS is the benficiary.

That means that all tax-payers have to pick up the financial slack, thereby shifting the cost of package delivery to everyone rather than focusing it on those who need the service.

The junk mailers will do whatever is necessary to protect their business. They will hire lobbyists to sway the votes of congresspeople towards bills which benefit their industry. They will complain to congress saying that since poor people cannot afford overnight delivery that they are being discriminated against and that junk mail should be delivered overnight at no additional cost by the USPS in order to “level the playing field”.

Finally, since decisions regarding the industry are made based only on criteria related to providing service to people who can’t afford it, might not want it, or don’t deserve it,  the private providers fail. Investors in those companies lose their money. The previously provided service it provided by the government-subsidized USPS and the entire industry becomes like the Mexican Post Office where it can take weeks to get mail if it arrives at all and where you might have to pay off your postman to get the mail. And the postman can’t be fired because he is the nephew of the Postmaster.

I take full responsibility for my own opinions, comments and slurs against asshats.  I'm just another guy with just another opinion. Although, I may be turning into my father who my mother always said was 'the world's foremost authority."

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