Quote of the Day: Government Beer?
"The latest gambit to increase government control of your life comes under the guise that private health insurance companies have been making "excessive" profits, taking advantage of their privileged economic positions. Acting like a shill for the administration, "Health Care for America Now" writes, "Simply put, the private insurance companies have secured monopolies or tight oligopolies and exercised that power to put profits ahead of patients."
What might have established the so-called monopoly and oligopoly? Why, government, of course. New York State has an impressive government regulatory structure that specifies what must be covered by your insurance policy. By law, you are restricted from shopping elsewhere for coverage. Your premiums reflect unfunded mandates dictated by the state legislature and Congress. It makes no sense to increase the power of government to restrict competition further if it is competition that helps hold down profits.
By the way, just how obscene are those profits? Economist Mark J. Perry, at the Carpe Diem blog listing of Profit Margins by Industry, shows the Health Care Plan Industry ranks #86 by profit margin (profits/revenue) at 3.3 percent and the hospital industry ranks #77 at 3.6 percent — much lower than the 25.6 percent profit margin for beer brewers. Yet the administration is not beating the drums to hold down brewery profits or to take over the industry to create Government Beer."
~Rome (N.Y.) Sentinel editorial