The Insurance Industry’s 11th-Hour Gift

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The LA Times reports on the recent rash of huge rate increases on individual policies by health insurance companies:

Health insurers across the country are dramatically increasing rates and slashing benefits for many of the estimated 17 million consumers with individual insurance policies, while making it almost impossible to obtain affordable alternatives.

….Rate increases by insurance companies are a fact of life for the nation’s insured, but sharp hikes this year in California have provoked a national outcry that has brought criticism from President Obama and prompted investigations in Sacramento and Washington.

….”A lot of what you see today is a product of the way the market works,” said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, the industry’s Washington-based lobbying arm. “The market is broken. Those people who do need the coverage wind up covering the cost of everyone else.”

Italics mine. Look: if the chief flack for the health insurance industry says the market is broken, then you have to believe that the market is broken. And it won’t fix itself, either. Despite what Republicans pretend to believe when they’re in front of the cameras, the way to correct this isn’t to deregulate further, allowing insurance companies to raise rates even more freely. It’s to broaden the insurance pool by mandating guaranteed issue so that no one gets turned down for a policy; enforcing community rating so that everyone pays a fair price; creating an individual mandate so that healthy people can’t game the system by buying insurance only when they get sick; and establishing federal subsidies so that low-income families can afford the premiums. And guess what? That’s what the current bill in Congress does. So let’s pass the Senate bill, agree on a compromise with the House version, and then pass it via reconciliation. It’s good policy, it’s good politics, and the insurance industry, bless its black, greedy little heart, has unexpectedly done an 11-hour face plant and given Democrats all the cover they need.

And if conservatives freak out when they finally figure out that Democrats have the stones to pass healthcare reform after all? Let ’em.

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THE TRUTH IS...

what drives Mother Jones' team of 50-plus journalists. The truth is powerful, as evidenced by how hard those with something to hide, or profit to gain, seek to discredit it. The truth, stated boldly and reported meticulously, is what draws so many readers to Mother Jones.

And the truth is, going into the final 4 days of the year we still needed to raise $TK to hit our $350,000 goal and start 2021 on track. It's nerve-wracking, wondering if the big spike we normally see at the end of December is going to be another thing that doesn't go as planned in 2020, or worse, if, now that Donald Trump is set to leave the White House (for longer than a taxpayer-funded golf trip to a property he owns), folks might be pulling back from fighting for the truth and a democracy and think the hard work is done.

It's not, and if you can right now, please consider a year-end donation to support our team's fearless nonprofit journalism so we can close that big fundraising gap and finish the year strong, ready for all that's ahead in 2021. Whether you can give $5 or $500, it all matters in keeping us charging hard, and we'd be grateful.

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