The Entreblog!

Cause they’re going to go up.

Obama has put up change.gov, which outlines his transition plan.  It’s basically the same info as his campaign site.  If you go to the health insurance section, here’s what you see:

“The Obama-Biden plan provides affordable, accessible health care for all Americans, builds on the existing health care system, and uses existing providers, doctors and plans to implement the plan. Under the Obama-Biden plan, patients will be able to make health care decisions with their doctors, instead of being blocked by insurance company bureaucrats.”

Here are a couple of extraordinary points:

• “patients will be able to make health care decisions with their doctors, instead of being blocked by insurance company bureaucrats.” – Right, so patients can get anything they want.  Well, a benefit plan like that will certainly cost a lot of money, right?

“Under the plan, if you like your current health insurance, nothing changes, except your costs will go down by as much as $2,500 per year.”

• Huh?  Insurance companies have to cover anything but are going to LOWER premiums?  Does he know anything about health insurance?

“Require insurance companies to cover pre-existing conditions so all Americans regardless of their health status or history can get comprehensive benefits at fair and stable premiums.”

• No.  No he doesn’t know anything about health insurance.

And my favorite:

“Make Health Insurance Work for People and Businesses – Not Just Insurance and Drug Companies.”

Check out these health insurance company profit margins (hat tip):

Cigna:  3.50%
United Health Group:  4.56%
Aetna:  3.64%
WellCare:  4.08%
Amerigroup:  3.51%
Humana 2.56%
WellPoint:  5.49%

In other words, reduce health insurance companies’ profits by 100% and you reduce health care costs by about 3-4%.

Most health insurance companies spend about 80% of their revenue on medical claims.  So, reduce doctors and hospital costs by just 10% and you reduce premiums by 8%, or twice as much.

The Obama policy tally:  higher unemployment, less business investment and growth, and either higher insurance premiums or bankrupt health insurers.

Good work, 52%.