I came across this article on a pretty hardcore liberal (statist) website and it basically explains that the entire notion is that the scare of Obamacare is completely manufactured by the private insurance companies. They explain that the insurance companies are trying to scam buyers into thinking that Obamacare will take away your insurance plan and its better to buy one of our more expensive plans. Can private insurance companies really do this ? This article explains more...
The question asks:
Can private insurance companies really do this [i.e., misrepresent Obamacare to induce the purchase of a more expensive insurance plan]?
If there really is deliberate misrepresentation going on, it cannot be classified as honest or ethical by rational ethical standards. The linked article notes, however, that whatever the insurance companies are doing is not illegal in most states. The article also emphasizes the following advice from the insurance commissioner of Washington state:
Don’t just take what your insurance company says, make sure you shop around. You have the right to buy any plan inside the new exchange or in the outside market.
If the article bemoans the claim that a great many consumers don't practice this advice and simply act like "sheep" following whatever others tell them, the article is simply expressing their own standard view of how the general public functions. Under laissez-faire capitalism, there would be no question that individuals have a personal responsibility to "shop around," that providers will lose business steadily if they try to "scam" the public, and that "scamming" that crosses the line into outright fraud would be illegal as well as unethical, since it is an indirect form of physical force. At the same time, there would also be no question under laissez-faire that the providers of any man-made service or commodity are perfectly rightfully entitled to charge whatever price they want for it (which buyers can "take or leave") and set whatever terms they want for what their product does or does not include (which again buyers are free to accept or reject). Providers (and buyers, too) would not be free, of course to breach any contracts which they choose to enter into.
From limited news reports that I've seen, I also suspect that many healthcare providers may be genuinely unclear about what the Obamacare law actually does or does not say (and how it might eventually be construed by the courts), in addition to being rightly upset about the huge expansion of government controls in the first place. My own health insurance provider issued letters in August and September of this year clearly emphasizing that "grandfathered" plans will remain available to their holders, and that consumers do not need to switch plans to comply with the Obamacare law. "Grandfathered plans" are those that were in force before March 23, 2010, "the date the ACA went into effect."
answered Nov 08 '13 at 22:44
Ideas for Life ♦