CBO says specifying MLR makes the budget go boom

by divorced one like Bush

I just listened to the conference call with Gov. Dean and Wendall Potter.
Toward the very end of the call, the issue of medical loss ratio regulation came up. Seems like a reasonable thing to regulate especially if we are going to get Chicago School of Economics style health care reform implemented via the Shock Doctrine method. (Yes, I’ve finally started that book and I’ve got to say, what is happening here with health care reform reads all too familiar.)

Unfortunately, according to Gov. Dean, the CBO keeps scoring MLR regulation as a hit (as in mafia take down) to the budget. Seem from CBO’s perspective, if you regulate that the MLR can be no less than somewhere around 90%, such a number placed on profit ability makes all of the nation’s health care a government budget item. Thus, something like $2.5 trillion gets added to the budget numbers.

Funny thing this CBO view. Basically this means that I (We the People) can mandate that I buy insurance, that I can only buy it from the private market, that I can write the rules of the market that I buy into, but I can’t tell a corporation that is granted a privilege by me to spend it’s money on the product it has been granted a privilege to provide? 

Maybe the CBO figures because I decided to help some people in buying the mandated insurance, that by regulating the MLR, I’m making that money a greater expense on the budget because now 90% is going to health care services and not 70%? I really can’t figure this one. Is the CBO really saying that I (and you) the government, can not assure that I’m going to get my money’s worth? How come this issue does not come up when the government negotiates drug prices for the VA?

I really think, after watching our congress deal with health care, finance reform, military, that we have a bigger problem in this nation regarding economics and who is the boss here than we are willing to admit. Hint: It’s We the People who is the government.  It just seems that we have definitely, completely entered the realm of reality where “the market” is the purpose and not the means.  We have been turned to existing to serve “the market”.  We have put “the market” before all our needs and desires for us as people.  This is primitive idolizing behavior.  This is sick.

I have to go plow now.