Why Obamacare And Trumpcare Are Both Flawed

Both healthcare models share a common flawed premise-insurance companies must be involved in providing healthcare and make money doing it.

We see this playing out in the latest dust up over serving people who have preexisting conditions. In the absence of a government rule insurance companies either would not provide coverage or only provide it at an extremely high price. This is because such coverage would not be profitable otherwise.

Obamacare requires insurance companies to provide coverage to people with preexisting conditions at the same price anyone else pays who does not have a preexisting condition. Trumpcare apparently will not preserve price equality, but how much the difference will be is not entirely clear. But both recognize that such coverage is a loser for insurance companies and the companies will not offer coverage unless the government subsidies them. And so both Obamacare and Trumpcare subsidize the insurance companies to provide this service. Nevertheless, it seems the subsidies are not sufficient to guarantee a profit and, therefore, coverage may not available to those who want it.

Both Obamacare and Trumpcare do cartwheels to make sure insurance companies prosper. What’s the point of subsidizing insurance companies and their attendant bureaucracies? It’s crony capitalism at its worst and does not add anything of value to healthcare.

Contrast these two models with Medicare for All. This single payer plan does require insurance company participation or subsidization. It’s efficient and everyone is covered over a certain age. It makes more sense than either Obamacare or Trumpcare and should be expanded to cover everyone in the country.