Improving health insurance requires more, not less, competition.
Imagine that your only option for cellphone service comes from one company special to every state, and that it costs $300 per month. On top of that, though it promises unlimited minutes and data, it drops calls all the time, provides lousy customer service, offers only a slow network, and forces you to buy a needlessly fancy phone that doesn’t work very well.
That is the future of health insurance under the health reform bills in front of Congress – unfair, unfriendly, and unhealthy.
My recent experience with Verizon Wireless illuminated this comparison.
After my daughter exceeded our monthly free minutes, I learned that Verizon offers the ability to change your plan. You can increase the number of free minutes at any time. There is also the option of making the change in plan retroactive to the beginning of your current billing cycle. By taking this very consumer-friendly option, I spent $17 on a new monthly plan but saved nearly $100 on overage charges.
Why is health insurance not the same?
Compare the consumer-friendliness of the cellphone industry with health insurance companies. Many of my friends have a horror story about how an insurer refused to certify a legitimate claim, dragged their feet on payment, overbilled them, or, if they even got to talk to a human being, was just plain awful at customer service. Health insurance companies certainly seem to fit a stereotype.
Are health insurance company employees just meaner and more greedy than those who provide cellphone service, or, for that matter, those who provide home and auto insurance? Certainly not.
The difference is that the cellphone, auto, and home insurance industries are highly competitive while the health insurance industry is not.