Supreme Court Arguments Make Us Think

The Supreme Court arguments this week should be reviewed by all of us interested in thinking through reasoned solutions to the rightful role insurance products should play in our society. I won't even attempt to summarize what is done so much better elsewhere. Rather, I will simply remind us that insurance is not and never has been an appropriate vehicle for social reform.

The economic problem of health care cost in the US emerged from a complex interplay of market forces and the desire of politicians to leverage those forces for political gain. Mr. Obama may have gone over the top for a political power grab but he is just one of a long line of politicians to take advantage of this sector of the economy for personal objectives.

Health insurance is designed to help individuals avoid bankruptcy in the event of personal high cost events. It is not a product suitable to cover the costs of everyday needs and wants of a society. While insurance pools the resources of many to cover the catastrophic costs of a few, it is not an appropriate tool for achieving what some envision as the ultimate tool of social justice.

We will reign in health cost in the US by having government play a much smaller role in regulating the industry, getting government out of paying for so much of the services, and allowing employers to more easily make affordable contributions to benefit pools while employees pay the difference. By connecting the individual buyer directly with the seller, we will reduce the skyrocketing costs of largely discretionary services. While easily conceptualized, this is a tough pill to swallow and politicians, many market players, and many consumers won't like the personal economic impact. This is precisely why the formula will work but also the reason behind the resistance. But by making insurance the tool of social reform, more of us are appeased in the short run while we ultimately loose our economic strength and freedom as a Nation. I hope and pray the Supreme Court decision helps us all rethink our real priorities as a Nation.