A Glimpse of the Conservative Health Care Future

McCain's health care plan effectively ends employer-provided health benefits [1] and has everyone buy health insurance on an "individual market" with fewer "regulations." [2]

Who gets empowered in this deregulated market? We already know, because Congress has partially privatized Medicare, creating private "Medicare Advantage" plans. How are they working out?

The New York Times reports: [3]

State officials say they will soon ask Congress for more power to regulate the marketing of private Medicare insurance plans to older Americans because they are still receiving complaints of high-pressure sales tactics that have led some beneficiaries to sign up for unsuitable policies.

...

In the draft of a report prepared by the National Association of Insurance Commissioners, state officials say they have received large numbers of complaints but, in most cases, cannot provide direct assistance to beneficiaries or hold insurers accountable.

...

In the draft report, state officials say that generous federal payments to private Medicare Advantage plans — set by law — have created a “tremendous incentive” for insurers to maximize sales by aggressive marketing.

Medicare pays private plans 13 percent more, on average, than it would spend for the same beneficiaries in the traditional Medicare program. The report says insurers often encourage agents to sell these products by paying larger commissions and bonuses than agents would receive for selling other health insurance products.

“State insurance regulators and consumer groups feel very strongly that these financial incentives have resulted in significant agent misconduct ranging from unsuitable sales to outright fraudulent activity,” the draft report says.

In short: poorly regulated private insurance companies -- which cost more than traditional Medicare -- are more likely to swindle consumers.

Consumers are not the ones who will be empowered by taking this failed experiment nationwide. It's the insurance companies. [1]