Debunking Common Sense
“Canadian rage feels like an apology.” - Stephen Colbert
Canadians have an incomplete understanding of the War of 1812. Much of their oversight has to do with the fact that Canada, at the time, was populated not by Canadian citizens but by British subjects. Canada doesn’t include Alaska because the Brits refrained from bidding when Russia put it up for auction. Canada does, however, have the 2010 gold medal in men’s hockey. For sure.
While our neighbors to the North have been graciously hosting the Olympic Games, apathy and antipathy in the U.S. have proceeded apace. I’m talking, of course, about last week’s legislative summit at Blair House. Needing to sleep, I only caught the first 3 hours.
In those 3 hours, I saw Eric Cantor and other Republicans describe some of their “common sense reforms.” The thought that people might believe these proposals are credible makes a person think the Department of Education could do with a bit more funding.
One must commend the President, for instance, for illustrating how a perfunctory understanding of insurance precludes incremental adoption of coverage reforms. Whether administered by a public or private body, health insurance is a matter of risk dispersion. In effect, those with a low risk of injury or disease — athletes, for example — subsidize the treatments required by higher-risk policyholders. In return, these low risk individuals defray their own medical expenses, should they do something like accidentally shoot themselves when their own firearms slip out of their sweatpants at night clubs.
You can see, then, why insurance companies reasonably be required to offer affordable coverage regardless of preexisting conditions without receiving an off-setting base of healthy clients.
More contemptible is the call to allow interstate health insurance sales in the absence of federal regulation. Practically, such action would cause health insurers to nominally relocate to whatever state provided the loosest regulations. Seeking revenue from corporate taxes, states would compete, in turn, to provide the least protection to policyholders. All this competition would certainly lead to lower premiums; it would also lead to extensive lapses in oversight and coverage.
What makes the interstate commerce argument so despicable, however, is that it’s touted by people who claim the preeminence of local government as a “fundamental principle.” Federal regulation means living under guidelines determined by a body in which the voices of local representatives are diluted. Selling health insurance across state lines without substantial federal regulations would leave the majority of states’ residents living under guidelines determined externally to their electoral franchises.
Of course, we could circumvent much of this debate by simply instituting some form of socialized insurance or medicine. That’s another thing they’ve got in Canada.