Socialized Health Care in the USA

[Jester]

It goes mainstream within a year of being passed. Several uninsured jump onto the plan immediately. Scared of the competition and cheaper costs, Private Insurers raise their rates. More people begin to overlook the "socialist" aspect of the Plan America and convert because of the rising costs of PI. The more people that convert, the more the PI companies have to "downsize" to stay afloat, eventually breaking down into smaller entities that offer comparable services on a local level only - good luck if your out of state and need surgery. Eventually after a decade or so, Plan America becomes THE health care provider for all of Americans with people getting local PI's only when they can't afford Plan America.

I know I've been arguing against treating health care as a normal good or service, but let's do that now, just to simplify.

I sell donuts at my store, Jester's Donut Emporium. One day, because people are paying too much for their donuts, or can get no donuts at all, the government sets up its own store: the Bureau of Donut Procurement and Provision (BDPP). They offer cheap, standard donuts to everyone.

You're saying that my reaction will be to *raise* prices, because I'm scared of low prices? How does that make sense? You compete by cutting prices, not raising them! And if I wouldn't do it for donuts, why would insurance companies do it for insurance?

-Jester