If private business can't be profitable when there's a public option

[BR_Parkway]

to compete against - can someone explain this?

Public Competition - United States Postal Service

FEDEX Net Income 2008 - $1,125,000,000
http://www.google.com/finance?client=ob&q=NYSE:FDX

UPS Net Income 2008 - $3,003,000,000
http://www.google.com/finance?q=NYSE:UPS

Blackwater continues to be profitable as a private military compared to our public military

Countless private security firms continue to be profitable compared to our public police forces

Health Insurance & Pharmaceutical companies continue to be profitable in spite of our public coverage through Medicare & VA hospitals.

Private schools and universities continue to be profitable in spite of of publicly funded ones


I loved Pres Obama's statement yesterday during the press coverage (paraphrase) "if they're so good, and we're so bad, how are we going to put them out of business"?

[Romulox]

1. This whole thing is an exercise in framing. People want SINGLE PAYER, not a "public option"

attached to a mandate to buy for-profit insurance.

[kestrel91316]

6. I believe the very existence of private for-profit medical insurance

when less than 100% of the population has coverage to be a crime against humanity.

Yeah. I DID just say that.

Once we have full insurance coverage for 100% of Americans, and a level of care on par with European nations, Canada, etc, then we can talk about having medical insurance for supplemental coverage. Not until then.

What happens when everyone is required to purchase insurance, but then those policies don't cover jack shit, and people STILL wind up getting bankrupted by medical expenses????

[CTyankee]

2. I think they would say that we're putting the "heavy thumb" of government on the scale

against the private companies when the public plan competes with them. That's their argument.

[Skink]

3. My take is that....

The Government started those businesses you refer to and helped privatize them. Healthcare however, is something employers started offering to keep the unions happy, so in a way this really would be a Government intervention if we could wrestle healthcare away.
There has to be a federal program such as medicare for all that starts from the ground up and does not even consider employers.

[seabeyond]

4. the part that had me questioning this was during obama conference yesterday he said, not for profit

so he is starting up a health care coverage that is not for making profit. that does allow an unfair competition against companies. no two ways about it. if a govt program does not have to make a profit, the companies do have to make a profit, there is an unfair advantage. i asked hubby how it can be anything different.

he says what it does, the short fall of the govt program is it will have to be their doctors, allowing their procedures and where the companies will have the advantage to gain consumers is that they can offer more. allow a person to chose doctor and that is how they will keep their customers.

but the facts of what obama is saying, a public option that is not for profit does give them the advantage

not an argument here for me, i want po, i think it is a must. just the facts

[Romulox]

9. It's not "fair" for the government to force us to buy products from for profit companies

The "free market" arguments don't work when people are being forced to buy the product.

[seabeyond]

10. odd argument. and should govt have not for profit on all things so we are not "forced"

to buy product from a company that makes a profit? so you are advocating communism, not even a socialism?

the question was why a ins co. could not be competitive. teh answer per obama, would be creating a not for profit competition

[Romulox]

13. It's not an odd argument at all. When the gov't forces us to buy a product, it distorts the market

"should govt have not for profit on all things so we are not 'forced' to buy product from a company that makes a profit?"

I'm not aware of many products the Federal Government forces us as individual to purchase, so it's hard to answer your question. My point was more basic, at any rate: if the government did not force us, many Americans would (or could) not purchase health insurance. So the market for health insurance (and hence profit margins) are being manipulated by government mandate, not market forces.

[seabeyond]

15. got it. missed the point. yes, that is one of the conditions, all must buy hc

true.

that is something that was bothering me. sure would be a ready boon for the ins co.

thanks for that point.

i really am looking to unravel with answers and perspectives. appreciate it

[napi21]

5. The private ins co's will have to rethink their business model.

They've been the only game in twon for a very long time. I think they're right when they say we will not be able to match a public plan. When you take the profit out, they can't. But they CAN offer things the basic public plan doesn't. I'm no ins expert so I have to guess what those things might be. Maybe cover all copays, cover catostrophic care after a max on public coverage has been reached, special accomodations in the hospital like private rooms, home care...things like that. They'll have to operate similar to the Medicare supplementals which cover the things Medicare doesn't.

I have to believe they're already thinking along these lines.

Public care would cover basic HC PERIOD!

[havocmom]

7. Amazon.com seems to do fine, even though public libraries exist

Yep, Obama did great on the public/private question.

[seabeyond]

11. they are able to offer something the libraries do not, that costs consumers for that

owning the product instead of borrowing.

actually, i am using your example to better clarify my point above, having just had this question brought to my attention yesterday, so still struggling for the answers.

and yes, i think yesterday obama did well in answering the questions.

[Ganja Ninja]

8. More than likely there will be a shift from private to public plans

because employers will want to save the money. I expect private insurance companies will have to make their money selling supplemental insurance. Overall profits will go down but profit margins will probably go up.

[seabeyond]

12. and job loss? n/t

[Ganja Ninja]

16. Well they may have to lay off the massive bureaucracy they employ

to give people the run around and short change them. On the other hand the government will have to increase their bureaucracy to cover the new responsibility they will have. Of course the health insurance CEO's will also have to take a major cut in the size of their pay checks since their companies will likely shrink in size.

[zbdent]

14. Why are the waterways kept clear by the Government-controlled Army Corps of Engineers?

wouldn't it be more "efficient" and "cost effective" if a private company did all of them?