How can a government run health insurance entity "compete" with private companies? Will it pay taxes?

It boggles my mind that the proponents of a government run health insurance entity would actual state that this entity would bring competition to the insurance arena. how would these private businesses compete with someone who does not have to pay taxes. how do companies compete with an entity that can literally raise taxes to pay for operational costs or an entity that is funded non voluntarily by the citizens of the United States? can the private insurance companies pass legislation that changes the rules of the game in the insurance business? No but the government could certainly dictate the rules of their own business by passing legislation in its favor. can someone please give me a logical reason as to how this government run health insurance option would do anything other than run private insurance into the ground to ultimately pave the way for the government to be the only health care option?

They would force private providers to provide better care and lower their administrative costs (which are around 3 times higher than the admin. costs of European government-run systems). it would force for-profit providers to lower their profit margins, but it wouldn't run them into the ground. this isn't rocket science you know.

They could stop gouging consumers with excessive costs. They've gouged us for years, and those "healthcare" costs aren't actually used for healthcare, they line the CEO's wallet. Gouging just like the oil companies did for awhile. it needs to stop.

That is also a major complaint I have with the government's bid to get a controlling share of GM. There is no way to compete with that as a private company.

Your question can not be answered because you are absolutely right. No one can give you a legitimate reason because there isn't one.

You apparently don't know that most U.S. companies don't pay taxes.

Once the government sticks its fingers into anything the potential for a monopoly arises.

it,s just a way for gov. officials to put money in there pockets again or family members just a scam

How can a government run health insurance entity "compete" with private companies? Will it pay taxes?

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75 Responses to “How can a government run health insurance entity "compete" with private companies? Will it pay taxes?”

  1. zxbe says:

    This is a great example of the waste in our health care system. Premium dollars should be used for providing care, and minimal administrative costs. CEO Bonuses, record company profits, silly contests, have nothing to do with providing health care.

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  3. powercow says:

    but it isnt a consortium of private businesses. [here this dispells some of the the president elects the entire board, all profits minus operational costs are giving back to the american people. Private member banks do own a part of the fed, but they do NOT appoint the board. THEY DO NOT keep the feds profits. THEY DO NOT SET MONETARY POLICY.

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  5. > I won't qualify for healthcare until 2014. Why is this? If you're 26 or under you should be able to get on your parent's plan. If you can't do that and you have a pre-existing condition and are being denied by private providers you should look in to the PCIP (pre-existing condition insurance plan) your state offers to get people with pre-existing conditions insured until they can find a private insurer.

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    I've seen the cost of government ran health care and the administrative costs are double the 14% that the insurance companies spend on process claims. On top of that you end up with rotten employees that know they can't be fired and you watch your health care go right into the sewer. Look at any government hospital or the VA and that should ward you off this folly for good.

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  22. Antialias says:

    True, but it's not as big a problem if nearly everybody is covered by some form of insurance. Right now much of that emergency room cost is never paid for by the patients and that cost is shifted over to other hospital services which are paid by the people with insurance.It's a chicken/egg sort of thing. You can't easily lower health insurance hosts without everybody being insured, but getting everybody insured is so expensive because healthcare costs so much. They can probably cut some administrative costs but I really don't think that is going to help all that much.

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  40. RT #NHSreform live blog - private providers + the #NHS. Live Q&A at 1pm #nhsblog

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  61. Ping.fm says:

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  63. Pete says:

    Sadly it is pretty far from poo, and you know *that* Private funding is not so much an issue, we have plenty of private providers in law education for example. And I agree, income disparity is a generator of inequalities; how does NCHum deal with that? How would a proliferation of such places do so? And yes, I have problems with some of the people involved, and a big part of that is the idea that such 'luminaries' will make for a centre of excellence :) It'll be a pretty narrow and arid kind of excellence is my concern.

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