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ObamaCare: What If It Were Fire Insurance?

Written by Gary North on October 22, 2013

What if ObamaCare were fire insurance? It would be very special. You could buy a policy after a smoke detector in your home started blaring.

When you hear “pre-existing condition,” think “blaring smoke detector.”

The insurance company has a sales offer: “We insure you AFTER your home catches on fire!” It’s a great offer . . . to people whose homes are on fire. It’s a bad deal for people whose homes have not caught on fire, and who will pay higher premiums to cover payouts to all those who sign up immediately after they call the fire department.

In fact, no one would voluntarily pay these premiums. So, what if the government wanted this kind of coverage for all homeowners? It would have to make participation mandatory. It would have to impose fines for not participating.

President Obama has a problem. ObamaCare does not work. If the website does not work, and you cannot get through on the toll-free number, then the program is Judy Garland singing “Somewhere, Over the Rainbow.”

So, he held a press conference. He gave a speech telling us how great the program is, other than the fact that you cannot sign up for it.

It was a unique press conference. It began with a promotional speech by a guest. He had a lot of back-up props: guests who supposedly had been able to buy a policy through the non-operational website.

The woman presented her testimony. That testimony is representative of the problem with the Affordable Health Care Act. It is not insurance. It is a government subsidy. Insurance is sold before you have a crisis. You do not buy fire insurance when your home is on fire. You buy it before. Not with ObamaCare. You buy it after you get sick. Then someone pays extra for your coverage. She said this:

I had applied to three private insurance companies only to be rejected due to preexisting health conditions. I am too young for Medicare, but I’m too old not to have some health issues. I was able to find a policy I am thrilled with, saving $150 a month, and much lower deductibles than my previous policy that I held through my small business.

I’m here today to encourage other people like me who needs access to quality, affordable insurance, and to tell them to have patience with such a new system. Without this ability to get this insurance, I know that a single hospital stay could have bankrupted me and my business.

In a multi-billion dollar government wealth-redistribution program, there are winners. She is a winner.

The voters have not yet seen what their premiums will be. By next year, they will find out.

The young people who will pay for older people’s pre-existing conditions will find out.

In his speech, President Obama neglected to mention the fines that millions of voters will pay next year for not participating. Next year, they will find out.

The program is off to a rocky start. It will get rockier when voters find out that they will be paying for the medical expenses of desperately sick people.

ObamaCare is a great program for sick people . . . once they enroll. It’s not a great program for healthy people, once the sick people enroll.

In the middle of the speech, a young woman standing behind him almost fainted. It turns out she has a pre-existing condition: type-1 diabetes. She has another. She is pregnant.

The good news for her is this: she is now covered. Someone else will pay to treat her pre-existing conditions.

All in all, it was a representative press conference. A handful of winners were there. The millions of losers have not yet paid the bills. They will.

This government-rigged insurance program is like a four-alarm fire. What is on fire is the public’s freedom of choice in the health-care delivery system.

Where’s the fire department? The toll-free line is busy. Call back later.

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34 thoughts on “ObamaCare: What If It Were Fire Insurance?

  1. Awesome analogy and great post Gary. This explains everything so simply.

  2. myindependentword says:

    When over 50% of the American people are on the dole I don't see a way out of this except moving to another country.

  3. Arthur Brown says:

    Read what it says! Read (carefully) John Robert's decision! Don't assume that it means you!

  4. If you read my posts you will see I can stand Obama and the tranformation he has done and is doing to our country. The problem with this article is that its incomplete. If insurance companies and doctors would have come together on pricing and healthcare the govt might not have been so over reaching. The govt always swings too far for my stomach in an extreme direction, if insurance companies wouldnt have kicked the can down the road and wouldnt have dropped people after they got treatment this may not have occured. When you get really sick (like cancer) you go get treatment after you get better they put you as high risk – like car insurance when you have speeding fines. They also make it hard for you to get coverage and family coverage its at a much higher price. If law makers wuld have seen what was going on and said we need a pool -like flood on homowners policy. This would have force Insurance companies to cometogether and make harder choices. There is a much better way to handle this than to force us all into this monstrocity of a health care system. IMO

  5. Sorry I mean cannot stand Obama!

  6. "I was able to find a policy I am thrilled with, saving $150 a month, and much lower deductibles than my previous policy that I held through my small business." So she already had insurance until Obamacare screwed it up and she got canceled!!

  7. william spires says:

    The democrats favorite tactic which Ann Coulter calls "speak loudly and carry a small victim" !!! You know damn well the woman who fainted was a plant to illustrate how fantastic Obamacare will be. Used especially by Al Gore, Hillary Clinton and Obama. Just like Obama's press conferences when lo and behold some Obama Acorn community organizer, occupy protesting, low information, small IQ reporter asks the perfect question !!!

  8. Excellent analogy Gary. I had not thought of it this way. I did compare it at one time to your family being able to buy life insurance after you die. Free enterprise within the United States of America is dying fast. Obamacare is the bullet in the head to free enterprise and our economy. It would have been much simpler to just open up the whole nation to insurance providers, with no state boundaries. More competition would have lowered rates considerably. Always does! Always will!

  9. profitup10 says:

    Here is where the Progressives should have gone to find out Ted Cruz and Mike Lee got it right . .

    NHS Connecting for Health is part of the UK Department of Health and was formed on 1 April 2005, replacing the former NHS Information Authority. NHS Connecting for Health ceased to exist on 31 March 2013 and the tasks have been taken over by Health and Social Care Information Centre. It has the responsibility of delivering the NHS National Programme for IT (NPfIT), an initiative by the Department of Health in England to move the National Health Service (NHS) in England towards a single, centrally-mandated electronic care record for patients and to connect 30,000 General practitioners to 300 hospitals, providing secure and audited access to these records by authorised health professionals. Contracts for the NPfIT Spine and five Clusters were awarded in December 2003 and January 2004.[1][2][3][4]

    It was planned that patients would also have access to their records online through a service called HealthSpace. NPfIT is said by NHS CFH to be "the world's biggest civil information technology programme".[5]

    The cost of the programme, together with its ongoing problems of management and the withdrawal or sacking of two of the four IT providers, have placed it at the centre of ongoing controversy, and the Commons Public Accounts Committee has repeatedly expressed serious concerns over its scope, planning, budgeting, and practical value to patients.[6][7][8] As of January 2009, while some systems were being deployed across the NHS, other key components of the system were estimated to be four years behind schedule, and others had yet to be deployed outside individual trusts at all.[8]

    While the Daily Mail announced on 22 September 2011 that "£12bn NHS computer system is scrapped…",[9] The Guardian noted that the announcement from the Department of Health on 9 September,[10] had been "part of a process towards localising NHS IT that has been under way for several years".[11] Whilst remaining aspects of the National Programme for IT were cancelled, most of the spending would proceed with the Department of Health seeking for local software solutions rather than a single nationally imposed system.[12]

  10. Young people were paying for older people’s pre-existing conditions long before Obama came along. It's called "Medicare."

  11. Free enterprise isn't dying in the U.S. because it has never existed in the U.S. What we have is a kind of state-protected corporatism.

  12. Although more competition in insurance WOULD lower rates, one of the basic problems with the current situation is the third-party-payer system. So many people have insurance, and use it for every medical provision, that competition among PROVIDERS has largely been absent. So what if we have very competitive rates for ridiculously expensive care? The rates will still be high because of the dollar amounts involved. We should move to a system where insurance covers catastrophic healthcare incidents only, not routine doctor visits, small treatments, or drugs. Something like a $1,000-5000 deductible per year would fit most people. If the clinics and hospitals had most people paying out-of-pocket for routine things and high deductibles for catastrophic, their rates would come down pronto.

  13. What's really needed to cut costs is tort reform. The lawyers in congress and the ABA will never allow that to happen.

  14. 4timesayear says:

    Good example, but that's also what happened with car insurance – we were forced to buy it in order to provide affordable coverage for drunk drivers.

  15. This really isn't a joke people. Same-sex marriage was considered a joke 20 years ago, but Obama is serious.

    Alll the "poor" people who lost parents, spouses,, or squeezes, will be able to take out life insurance policies on their dead associates to pay for various "household expenses." It will probably be done by esxecutive order, specifying that there are "no preexisting exclusions."

  16. Backstage Magazine has had casting calls for people to attend Obama town hall meetings, stand around, look like "just plain folk", then clap and cheer on cue.

    There's you-tube of a guy supposedly the father of one of the dead Sandy Hook kids at a press conference, he comes out the door laughing and joking, and they say “Ready to go?”, then he does the breathing exercise to wind down and look distraught and grief-stricken in front of the cameras.

    CNN "live" feeds from Baghdad turn out to be green-screens from some other safe location where the reporters really are.

    Mocumentaries on the educational channels devoted to "mermaids" and the "rise of zombies" in America as if they were real phenomena.

    Everything on the corporate-owned networks is stage-managed theater and propaganda. Americans have to be the most lied-to people on the planet.

  17. Allow health insurance sales across state lines has two problems. The first is state's rights. Do we really want Washington to grab yet authority away from the states? This compromises the principle Republican governors used to resist Medicaid expansion.

    Second, the outcome would probably resemble what we got after cross-state banking was legalized. The banks all set up South Dakota subsidiaries, since it had the highest usury rates. Instead of more choice, we now have less. You can get a credit card from any bank you want as long as it is in South Dakota. Read the fine print on yours if you don't believe it.

    With nationwide health insurance, all the carriers would simply migrate to whatever state allowed the highest premiums and the lowest benefits. I really doubt it would be much better than Obamacare.

  18. If your friends can't read, maybe this video will help: http://www.youtube.com/watch?v=I7pqRjHQ9BU

  19. Cliffystones says:

    I was going to make my own post, but you've said some of what I was already thinkimg.

    Shortly after mt 31st birthday (I'm now 55), I changed jobs. We decided at the time to make me a dependent on my wife's insurance. Two weeks into my new job, what I thought was a simple infection turned out to be cancer. Were it not for insurance we would have been financially ruined. I had been working full time since I was 18 years old and had always had employer provided medical insurance.

    It wasn't just the insurance companies and health care providers who dropped the ball. "Conservatives" aka "Republicans" sat back and did nothing to straighten out this mess when they had the chance after "Hillary-care" got defeated. So now we have the communists implementing their moronic plan, when reforms could have been enacted nearlt 20 years ago. Government needs to stay the he!! out of the healthcare business for sure. But as representatives of the people, they could have enacted laws to hepl make health insurance more of a business and less of a ponzi scheme.

  20. Top down it's an organization dedicated to destruction and chaos, polar opposite of productivity and creativity! The technology and process of a website sales program with variable qualifiers and prices is very old and fully defined, but nothing like setting Libya or Egypt afire!

    Rules begin with truth and integrity with full free interchange of risks, flaws, and possibilities with lots of challenging up and down the chain of command. All must know the process works before it's expanded with equipment and manpower to the entire USA!

    When a liar tells you it's working, one should know it isn't. When corruption rules, one doesn't have a clue if the words mean danger or full speed ahead. At that point, everyone all up and down the line has a script to explain failure or success, plus a subordinate who will fall on their sword or cheer to save or praise their master. Evolution has taken us to the current where the leader just says everything is progressing according to plan, the staged crowd claps, and the population goes back to sucking their thumbs and going to be early, hoping they will wake up dead.

    Bottom line we know Obama didn't have a clue, Sebelious didn't have a clue, and because nothing works right, no one else in their organization has a clue. $17 trillion debt, no tangible assets to show for it other than a sacked economy that looks a lot like Sodom & Gomorrah, says they really are good at what they do – destruction & chaos!

  21. BINGO, david!!! Agreed 100%! Add one more thing–let's quit being hypochondriacs and namby-pambies, and ignore all those moronic TV medicine commercials! Toughen up, America!! 70% (I've read) of us are regularly taking legal drugs? Is that "sustainable" behavior?! What kind of a legacy is THAT to leave our kids?!

  22. You’re giving obama a pass by sayinh he was doing what the insurance companies would not do. The obamacare is the stepping stone to single payer, by design! Obama could have worked with insurance and republicans on a much better solution but had no desire to do so as it would not have gotten to the final gov controlled solution. Obama’s deception is true evil.

  23. erich kellner says:

    Another analogy applies the same one-rate for all to fire, life and auto insurance. How much sense does it make to have careful actors pay the same as Evil Knievels and Jackasses?

  24. Usagent you see through this mess with clarity. There was something rotten in the fact that as described in the article you couldn't get insurance because you have diabetes. But what drives me mad at the administration is that the same insurances who wouldn't care about care were put in charge of writing the law. And that's nuts.

  25. Mike Shefer says:

    There’s a question to ask, if it’s such a good idea, why not use it for yourself? I mean the president senators & congress?

  26. Long-winded, this in 3 parts. PART I
    I agree with comments here about Congress' actions being piecemeal in healthcare – as if solutions were meant to be subordinate to power. Oh! That is the real problem! America had a good, doctor-dominated health system including spreading hospitals more into rural areas, as fostered by legislation in the 1950s – a system that could absorb care for the then level of uninsured in a humane way. Initiation of the HMO era at the beginning of the 1970s ushered in the middleman, the profits & money skimming at the top, and let in corporate powers that won't willingly let go. What percent of medical arena dollars actually go toward providing care? That question should be universal, including in the so-called nonprofit charity arenas where you can find 75%+ dollars going to the fundraisers, not the programs. Claims of administrative savings of scale are often used to mask the massive profit-skimming of non-care dollars.

  27. PART II
    We do need government as a proper traffic cop for a healthy health care "element" for all of society (I shy from saying "industry" which it has become; there is the rub) – but Congress has been lousy at power brokering, what with its near absolute power corrupting greatly. We do not need a suffocating, regulatory-of every-citizen’s-breath democracy we now enjoy. And, of course, President Obama in August this year, by executive order (interpreting or violating the ACA?), exempted Congress and its staff from the ACA.

    Once the HMO era began, and increasing ever since including Obamacare, and with the challenges of developing medical technology, no one – not insurer, not doctor, and not patient – has had incentive to carefully use medical resources toward the quality care of each patient, especially so under Obamacare. No one has skin in the game – which it has become.

  28. PART III
    Anecdotally, I have two illustrations. The first > around 1998, we took our one year old to a hospital for a minor, half-hour outpatient surgery. We had medical insurance with high deductible. Apart from a required $500 hospital deposit from us, the hospital would not give us a cost estimate – not 3 weeks before, not 1 week before, nor one half hour before (we could go home if we chose). The performing doctor's bill was about $580, the anaesthesiologist about $500 … and the hospital? $6500! The hospital ultimately received about $560 — but look at all the physical, emotional, and financial energy that went into the money wrangling, and this was not even a case of dispute over medical treatment. The second > this last month, a younger person we know, about age 50, said, "are you going to sign up for a colonoscopy? It's free". One member of our family, in late fifties, last year paid what we thought was an inexpensive $1350 for the same – with belief in the need to have the procedure.

    Finally, don’t neuter all the lawyers; they are one hope in the arsenal of opposition to absolute power.

  29. PART IV – a postscript
    Two reasons the older generation is seeking / accepting greater entitlements, apart from human nature, are: 1) it is natural to ask for a return on, not just return of, payments made the system during working years, and 2) the banking system that we (Congress) have allowed to fester, and the forever government deficit spending (Congress again), has forced the powers that be, through the Federal Reserve, to steal away most all earned interest on peoples' savings – not good for the country generally, in mind, spirit or for its economy – except for the banks, as more credit is all we have to spend. This result is an example of the piecemeal approach to our real issues; I call that negative, substitute behavior.

  30. Thirty years ago, in my mid-50s and self-employed, I had a pre-existing medical condition. I could get individual insurance but it was “rated” unaffordablly high. No problem. I bought a group policy (which spread the risk) and covered only major medical expenses. The government could do that today – if they wanted to. Instead, it’s about power and control of the entire medical care industry – 18% of our national economy. Obamacare has very little to do with health care. That the voting majority falls for this line of bull is what makes me sick.

  31. NoMoreMarxistsInDC says:

    Obamacare is FORCED-PLACE INSURANCE, just like mortgage companies did to mortgagees during the predatory mortgage lending debacle in 2000-2010. Banks, mortgage lending companies and finance companies would cancel policies on people and then put significantly higher "Forced-place insurance" causing many to default on their mortgage payments because they couldn't pay the extra #300-$1000 per month forced upon them with bogus homeowner's insurance set up fraudulently by the banks, mortgage lending companies, etc. This was why anti-predatory lending laws were passed by states, and why a lot of mortgages that were foreclosed upon wound up being securitized, bundled and sold to other financial institutions as an investment instrument.

    Obamacare is just another "Forced-place insurance" being foisted upon the public at the point of a gun. Welcome, Mao!

  32. Harrison Bounel says:

    I don't want some government bureaucrat deciding if I or a loved one can have a life saving operation.

  33. barrys folks dont have fire insurance since they are in section 8 government housing

  34. dudlymoore says:

    most other countries have single payer idiot, something I'm sure you want, retard