Maybe you and I have a different understanding of regulatory capture. But let's talk some reality here. There IS NO alternative to government writing and enforcing regulations. The alternative is NO regulations. If you listen and decipher, THAT is what the GOP is really promoting.
No that is NOT what a conservative wants and NOT what the GOP is going for. They want the government out of business but that does not mean an end to regulation. As long as you hold that view you cannot understand what we are fighting for on the other side. I know and understand what place the government has and accept that there are needs that the people have that must be protected with government regulation. You attack simple concept like the ability for insurance to be sold across state lines with falsehoods like the race to the bottom. Much like the new limitation on minimum coverage that exist with latest HC there needs to be the same concept places within any insurance that would sell across state lines. The first was placed in the law, why was the second ignored? The mandate that was pushed by the libs, THAT is regulatory capture. Now the insurance companies don't need to compete because you MUST purchase. How can you see that BOTH parties are doing it. The only difference I can see is that the libs rub it in our face and claim victory for us as they are incorporating it.
First of all, I would appreciate it if you would stop cutting up my posts. Second, I surmise you didn't check out my link and listen to the interview.
You clearly have some warped view of regulation. 'Government out of business' is the END of ANY regulation. You have some disconnect going on in your thinking. And you are dead wrong about insurance being sold across state lines not being a race to the bottom. It is not only a race to the bottom, it is mass deregulation.
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Selling insurance across state lines: A terrible, no good, very bad health-care idea
The big Republican
idea to bring down health-care costs is to "let families and businesses buy health insurance across state lines." Jon Chait has some commentary
here, but I want to simplify a little bit.
Insurance is currently regulated by states. California, for instance, says all insurers have to cover treatments for lead poisoning, while other states let insurers decide whether to cover lead poisoning, and leaves lead poisoning coverage -- or its absence -- as a surprise for customers who find that they have lead poisoning. Here's a
list (pdf) of which states mandate which treatments.
The result of this is that an Alabama plan can't be sold in, say, Oregon, because the Alabama plan doesn't conform to Oregon's regulations. A lot of liberals want that to change: It makes more sense, they say, for insurance to be regulated by the federal government. That way the product is standard across all the states.
Conservatives want the opposite: They want insurers to be able to cluster in one state, follow that state's regulations and sell the product to everyone in the country. In practice, that means we will have a single national insurance standard. But that standard will be decided by South Dakota. Or, if South Dakota doesn't give the insurers the freedom they want, it'll be decided by Wyoming. Or whoever.
This is exactly what happened in the credit card industry, which is regulated in accordance with conservative wishes. In 1980, Bill Janklow, the governor of South Dakota, made a deal with Citibank: If Citibank would move its credit card business to South Dakota, the governor would literally let Citibank write South Dakota's credit card regulations. You can read Janklow's recollections of the pact
here.
Citibank wrote an absurdly pro-credit card law, the legislature passed it, and soon all the credit card companies were heading to South Dakota. And that's exactly what would happen with health-care insurance. The industry would put its money into buying the legislature of a small, conservative, economically depressed state. The deal would be simple: Let us write the regulations and we'll bring thousands of jobs and lots of tax dollars to you. Someone will take it. The result will be an uncommonly tiny legislature in an uncommonly small state that answers to an uncommonly conservative electorate that will decide what insurance will look like for the rest of the nation.
As it happens, the Congressional Budget Office looked at a bill along these lines back in 2005. They found that the legislation wouldn't change the number of the uninsured and would save the federal government about $12 billion between 2007 and 2015. That is to say, it would do very little in the aggregate.
But those top-line numbers hid a more depressing story. The legislation "would reduce the price of individual health insurance coverage for people expected to have relatively low health care costs, while increasing the price of coverage for those expected to have relatively high health care costs," CBO said. "Therefore, CBO expects that there would be an increase in the number of relatively healthy individuals, and a decrease in the number of individuals expected to have relatively high cost, who buy individual coverage."
That is to say, the legislation would not change the number of insured Americans or save much money, but it would make insurance more expensive for the sick and cheaper for the healthy, and lead to more healthy people with insurance and fewer sick people with insurance. It's a great proposal if you don't ever plan to be sick, and if you don't mind finding out that your insurer doesn't cover your illness. And it's the Republican plan for health-care reform.
Washington Post - Selling insurance across state lines: A terrible, no good, very bad health-care idea
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The most dangerous part is the provision that allows health insurance to be sold "across state lines." We know it is the most dangerous because it's modeled after the deregulation that gave us usurious credit card interest rates and obscene late fees. It's why consumers are buried in debt from which they cannot recover. And it's what Congress is quietly attempting to do to American health care.
"Selling health insurance across state lines" is a euphemism. This is health insurance deregulation. Its intended, practical effect is to eliminate state regulation of health insurance. The health insurance industry is already blessed with an antitrust exemption, allowing it to determine prices by collusion; now it will suddenly be free from the state regulation that protects consumers. Does your state require insurance companies to cover medically necessary abortions or vaccinations? Not anymore. Does your state require that your health coverage be automatically renewable? Not anymore. Does your state require that newborns be automatically covered at birth? Not anymore. Borne of a bill originally intended to increase competition in insurance, this mass deregulation will decrease competition and trigger yet another race to the bottom. We've seen it before.
"Selling Insurance Across State Lines" is Health Insurance Deregulation
Justice is itself the great standing policy of civil society; and any eminent departure from it, under any circumstances, lies under the suspicion of being no policy at all.
Edmund Burke