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Megan McArdle catches some supreme ignorance from Kathleen Sebelius.
… you should always have liability insurance, but should think twice about collision damage coverage. It’s why high deductibles are a good idea–for small expenses, it’s better to self insure. And it’s why “catastrophic” health plans, which only cover the sort of extremely expensive events that most people would have difficulty financing, are a much better deal than the soup-to-nuts plans that most people get through their employers. Those plans are expensive, both because they’re paying for a higher percentage of your expenses, and because they drive up utilization–which means that they drive up next year’s premiums even more. Imagine what your car insurance would cost if it covered gasoline, routine maintenance, and those little air freshener trees you hang from the rearview mirror. Then stop asking why health insurance costs so much.
But Kathleen Sebelius, the Secretary of HHS, thinks that catastrophic insurance isn’t really insurance at all.
At a White House briefing Tuesday, Health and Human Services Secretary Kathleen Sebelius said some of what passes for health insurance today is so skimpy it can’t be compared to the comprehensive coverage available under the law. “Some of these folks have very high catastrophic plans that don’t pay for anything unless you get hit by a bus,” she said. “They’re really mortgage protection, not health insurance.”
She said this in response to a report from the American Society of Actuaries arguing that premiums are going to rise by 32% when Obamacare kicks in, as coverage gets more generous and more sick people join the insurance market. Sebelius’ response is apparently that catastrophic insurance isn’t really insurance at all–which is exactly backwards. Catastrophic coverage is “true insurance”. Coverage of routine, predictable services is not insurance at all; it’s a spectacularly inefficient prepayment plan. …
More from John Steele Gordon.
If you would like to know what insurance really is, and why Obamacare (and much private “medical insurance”) is not insurance at all, but an economic and humanitarian disaster waiting to happen, you cannot do better than Megan McArdle’s delightfully jargon-free article in The Daily Beast.
Insurance began in the 17th century when merchants wanted to protect themselves against the loss of a ship and its cargo. By paying a small amount upfront, they each protected themselves against the loss of a huge amount. This is called risk pooling, one of the truly great economic ideas. By spreading risk, it made it much easier to assume risk, and assuming risk is one of the prime drivers of an economy.
Thus insurance, properly understood, is meant to protect against a catastrophic loss that would be financially ruinous, such as a lost ship. It didn’t pay for a parted topsail halyard. And that’s why if your grandson throws a baseball through a living room window, you call the guy who fixes windows, not the insurance company. It’s when the roof blows off in a storm that you call the insurance company.
But most medical insurance covers everything from hangnails to heart transplants. Have a sniffle? Your insurance company pays the doctor’s bill. This not insurance at all, it’s a prepayment plan.
Megan McArdle likens it to “grocery insurance”: …
Mark Steyn comments on gay marriage.
Gay marriage? It came up at dinner Down Under this time last year, and the prominent Aussie politician on my right said matter-of-factly, “It’s not about expanding marriage, it’s about destroying marriage.”
That would be the most obvious explanation as to why the same societal groups who assured us in the Seventies that marriage was either (a) a “meaningless piece of paper” or (b) institutionalized rape are now insisting it’s a universal human right. They’ve figured out what, say, terrorist-turned-educator Bill Ayers did – that, when it comes to destroying core civilizational institutions, trying to blow them up is less effective than hollowing them out from within.
On the other hand, there are those who argue it’s a victory for the powerful undertow of bourgeois values over the surface ripples of sexual transgressiveness: gays will now be as drearily suburban as the rest of us. A couple of years back, I saw a picture in the paper of two chubby old queens tying the knot at City Hall in Vancouver, and the thought occurred that Western liberalism had finally succeeded in boring all the fun out of homosexuality.
Which of these alternative scenarios – the demolition of marriage or the taming of the gay – will come to pass? Most likely, both. In the upper echelons of society, our elites practice what they don’t preach. Scrupulously nonjudgmental about everything except traditional Christian morality, they nevertheless lead lives in which, as Charles Murray documents in his book “Coming Apart,” marriage is still expected to be a lifelong commitment. It is easy to see moneyed gay newlyweds moving into such enclaves, and making a go of it. As the Most Reverend Justin Welby, the new Archbishop of Canterbury and head of the worldwide Anglican Communion, said just before his enthronement the other day, “You see gay relationships that are just stunning in the quality of the relationship.” “Stunning”: what a fabulous endorsement! But, amongst the type of gay couple that gets to dine with the Archbishop of Canterbury, he’s probably right.
Lower down the socioeconomic scale, the quality gets more variable. One reason why conservative appeals to protect the sacred procreative essence of marriage have gone nowhere is because Americans are rapidly joining the Scandinavians in doing most of their procreating without benefit of clergy. Seventy percent of black babies are born out of wedlock, so are 53 percent of Hispanics (the “natural conservative constituency” du jour, according to every lavishly remunerated Republican consultant), and 70 percent of the offspring of poor white women. Over half the babies born to mothers under 30 are now “illegitimate” (to use a quaintly judgmental formulation). For the first three-and-a-half centuries of American settlement the bastardy rate (to be even quainter) was a flat line in the basement of the graph, stuck at 2 or 3 percent all the way to the eve of the Sixties. Today over 40 percent of American births are “nonmarital,” which is significantly higher than in Canada or Germany. “Stunning” upscale gays will join what’s left of the American family, holed up in a chichi Green Zone, while, beyond the perimeter, the vast mounds of human rubble pile up remorselessly. The conservative defense of marriage rings hollow because for millions of families across this land the American marriage is hollow. …
Liz Cheney says we have to start fighting back.
… If we don’t defend our freedoms now against the onslaught of President Obama’s policies, we won’t have to wait until our sunset years for American freedom to be a distant memory.
These days Washington careens from crisis to crisis, most of them manufactured. The Obama White House and its allies are engaged in the kind of sky-is-falling melodrama normally reserved for the lives of teenage girls. (As the mother of teenage girls, I speak with authority on this, though the comparison does a disservice to teenagers.) With our attention diverted by each fiscal cliff or sequestration drama, we are at risk of missing the real threats to the republic.
President Obama is the most radical man ever to occupy the Oval Office. The national debt, which he is intent on increasing, has passed $16 trillion. He believes that more government borrowing and spending are the solution to every problem. He seems unaware that the free-enterprise system has lifted more people out of poverty than any other economic system devised by man.
Perhaps his ignorance of that fact explains his hostility toward the private sector. In one of his autobiographies, the president writes that he felt “like a spy behind enemy lines” during his brief stint working for private industry.
The president has launched a war on Americans’ Second Amendment rights. He has launched a war on religious freedom. He has launched a war on fossil fuels. He is working to nationalize one-sixth of the economy with job-killing ObamaCare. He wants to collect a greater portion of every American paycheck, not for the purpose of paying down the national debt but to expand his governing machine. He doesn’t believe in creating a bigger pie with more opportunity for all. He believes in greater redistribution of a much smaller pie. If you’re unsure of what this America would look like, Google”Cyprus” or “Greece.”
The president has so effectively diminished American strength abroad that there is no longer a question of whether this was his intent. He is working to pre-emptively disarm the United States. He advocates slashing our nuclear arsenal even as the North Koreans threaten us and the Iranians close in on their own nuclear weapon. He has turned his back on America’s allies around the world and ignored growing threats. …