August 05, 2009

Congressman McGovern

There was a story in the Telegram today. In particular this one line caught my eye:

Mr. McGovern added that a government plan, the so-called “public option,” is needed to create competition with private insurance carriers to hold down costs.

This could not be further from the truth. Let me make an analogy with health clubs.

  1. Lets say the government said that there was a health crisis and people were not working out enough and once they are out of shape, they get sick, ring up medical bills and costs all of us money.
  2. That we need a "public option" health club that did not charge exorbitant rates like the privately owned health clubs who pay their CEO's exorbitant salaries.
  3. Not only would the rates of these health clubs be much less, but when they bought equipment they could buy the piece of equipment much less then the privately owned health club.
  4. If this "public option" health club loses tons of money, who cares the tax-payers will pick up the debt.

Let me ask you this what do you think would happen to all the "privately owned" health clubs. Do you think this would create more competition?

Just the opposite, the private health clubs would eventually go out of business and we would have one "public option" health club.

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