What Obamacare Did for Me

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In January I was kicked off my health insurance and forced to buy an Obamacare plan through my state’s health insurance exchange. Let me tell you about it.

My monthly premium is now $315. I am poor and struggle to pay this bill. In fact, the $1,500 I have paid so far this year would torture the poor working class people Obama promised to help. My premium on my old health insurance was roughly the same. I thought the whole idea of Obamacare was that if everyone bought health insurance then premiums would go down. Why, then, is an Obamacare plan still so expensive?

Here it is worth noting that what I pay is $315 a month, but my premium is officially $385 per month, lessened by a $70 per month “tax credit” that the government pays because I bought an Obamacare plan. I would not complain if Obama gave me poor coverage but at least paid my premiums for me (although when I say this I choose not to engage my readers in the lengthy debate about whether fully socialized medicine would be even more horrible than Obamacare). But $70 is little enough, compared to what I pay each month. So I am still getting price-gouged and I don’t get free health coverage, either — when free healthcare is what the liberals and socialists thought Obamacare would lead to.

If I catch a cold, my health insurance is useful. If I get seriously sick, I am totally screwed.

Obamacare is actually the worst of both worlds, because meanwhile, I’m not getting the quality of service that would have come from a true free-market product. For my $315 monthly premium, I get a plan that has a deductible of $3,000 for in-network hospitals and $6,000 for out-of-network doctors and out-of-network hospitals. (The deductible for in-network doctors is also $3,000, but it’s waived for in-network doctor’s office visits, which require only a $30 copay. But see below.)

Which poor people have $3,000 or $6,000 to spare? I certainly don't. If I catch a cold, my health insurance is useful. If I get seriously sick, I am totally screwed.

In the interests of fair and balanced journalism, I will tell you that I had a respiratory infection in March for which I saw a doctor and took an antibiotic, and I guess my doctor's bills and medicine costs would have been much higher if not for Obamacare. This does not alter the fact that I now live in chronic fear of getting very sick. Nor does it alter the fact that if I had saved up my $1,500 of premium payments instead of paying it I might have been able to bear the cost myself.

My plan is with Anthem Blue Cross, the biggest Obamacare provider nationwide. When I call them I am kept on hold for over an hour. This has happened a dozen times.

When I bought this plan the policy disclosures said the deductible was waived for visits to certain types of specialists, so in those cases I would be liable only for a $30 copay. I saw such a specialist in February and promptly sent in a claim. I heard nothing for a month, called to follow up, and was told they had lost it. I resubmitted the claim. They lost it again. I followed up yet again, and was told that because my specialist is out-of-network, the deductible was not waived. This is not what the plan had said. But it turned out not to matter, because they rejected the claim anyway, because of my doctor's bad handwriting on an Anthem form.

Anthem has told me that I may resubmit my claim for the February office visit, but the hassle of dealing with them has scared me away. And I hesitate to bother, anyway, because if the claim is allowed the only result may be $150 going toward a $6,000 deductible. At some point I may try to submit the claim a fourth time, but I don’t expect anything good to come of it.

This is a true story.

I tell this to my liberal mother and she says all insurers are greedy.

The plan was designed by Obama. But for political partisans, blame is always better to give than receive.




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Lifeboat Drill

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Word has come of a gruesome accident in the Canary Islands. A cruise ship anchored there staged a test of its lifeboats, and five crewmen died. At the moment, the cause is said to have been a break in one of the cables by which lifeboats are lowered to the water. A picture shows a capsized lifeboat next to the ship. The dead crewmen were trapped beneath it.

This is sad, but why is it of any more interest than any other industrial accident? Because lifeboats are constantly hailed as a solution, not a cause, of naval disaster.

The 101st anniversary of the sinking of the Titanic arrives on April 14. We will hear a great deal about the importance of government regulations to ensure that every ship has enough boats for its whole company of passengers and crew.

Since the Titanic, this kind of regulation has been in effect. But as with most regulations, the effects have been mixed, to use a conventional kind of understatement. When American total-lifeboat regulations came in, two things happened. One was the ruin of America’s passenger steamship lines to the Orient. The owners couldn’t afford to meet the new standards (which, admittedly, included labor-protectionist provisions only notionally connected with safety). The other was the sinking of the steamship Eastland. The Eastland capsized in the Chicago River, with immense loss of life, because it had been overloaded with lifeboats.

The story of the Eastland is ably presented by George Hilton in his book on the subject. I myself have analyzed the lifeboat issue in my book about the Titanic. I’ll hit some high points:

Only one large passenger ship has ever been evacuated solely by its own boats, and that was a vessel in which almost all the passengers and crew were under military discipline. If a large ship gets into trouble, it ordinarily sinks right away (as did the Lusitania, with horrible results from the attempted launching of lifeboats), or it takes days to sink. In the first case, few boats will probably be capable of successful launch (even the Titanic used remarkably little of its available lifeboat space). In the second case, other ships will appear to take people off the stricken vessel, if that vessel is anywhere near normal lines of travel.

It is a fearful thing to enter a lifeboat and be lowered 50, 60, or 70 feet into an ocean that is probably cold and turbulent. Usually, it’s better to stay with the ship. If the passengers on the Costa Concordia, which suffered a disastrous mishap off the coast of Italy in January 2012, had understood this, they would not have panicked, and they would have sustained fewer deaths. Instead, they remembered propaganda about the Titanic and concluded that they were doomed, because their lifeboats were not efficiently launched. In some cases, they jumped off the ship, and died.

By the way, the Costa Concordia never sank. It’s still there, lying on its side, along the coast of Italy. If you were a passenger without an operative lifeboat, you could still be living on board. Yet watching the one-year retrospectives on this event, one would think that the ship had sunk — and passengers had died because lifeboats were not available.

The truth is that everything people do, or plan to do, has its own risks. Even tests of government-mandated rescue equipment can go wrong, terribly wrong. There is no such thing as a free lunch, or a free rescue, either. Let’s end the pious pretense that there is.




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From “Reinvest” to “Occupy”

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The “Occupy” movement attacks only the superficial side of the problem. It’s like blaming the gardener, instead of the weather, when the flowers die.

Times are hard and our first impulse is to indict what is right in front of us, namely, banks, corporations, the people who have made money by merely observing and accurately interpreting the idiocy around them — people who have taken advantage of the economic distortions to make money.

Banks, corporations, and wealthy people happily obeyed the Community Reinvestment Act, passed by Congress, and used the cheap money created by the Fed to make obscene profits in the five years or so before 2007. Since that time, they have made even more profits by borrowing short-term money at almost zero interest rates, forced into the economy by the Fed, and investing in long-term Treasuries at 3%, the so-called carry trade. If there is a trough, there will be pigs.

The government is the ultimate source of the misallocations that have and probably will continue to impoverish “the 99%.” “Occupy” and its supporters who “believe,” in their government-school-induced darkness, that the government can “save” them from evil “capitalists” seem to be screwing their heads into a socket that produces very little light.




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