QUOTE(Ted @ Nov 5 2007, 04:08 PM)

What we need is public money to the poor and needy to buy insurance competitively. Given good competition the prices will stay reasonable and the quality high.
We are living the free market "solution" right now, and it's not working out so well for about 47 million uninsured Americans. I would also challenge your characterization of prices as "reasonable," whether you meant medical care or health insurance. Try paying for either one out of pocket if you are lower middle class or below. Quality of medical care, I admit, is very high - and that's good news for those people with insurance, and not such a plus for those without.
The cost of private health insurance is already rising WAY faster than the rate of inflation. (see below) Simply giving the poor money to buy private insurance would only exacerbate that problem - prices would surely spike from the huge influx of tax dollars being dumped into the laps of insurance companies. (In fact, I'd be surprised if insurance lobbyists aren't already pushing that idea.) The effect would probably be to make insurance less affordable for everyone else.
At the heart of it, I just don't trust insurance companies to look out for my welfare. They are there to make money. Take the above example of pre-existing conditions - it took LEGISLATION to solve that problem, not the free market. AIDS treatment? Fertility treatment? Experimental procedures? Insurance companies are against all of that (and a lot more), because to them, it cuts into profits. But the country has a real interest in all of them, and the government might well decide that it's worth the extra cost. Given free reign to insure as they see fit, insurance companies will maximize profits by cutting back on care, unless you can pay the difference - and once again, you will be stuck with a rich-have, poor-have-not system like we have today.
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>>NEW YORK (CNNMoney.com) -- Health insurance premiums this year rose 7.7 percent, the lowest growth rate in six years but still more than double the growth rate in inflation and worker earnings, according to the latest survey from Kaiser Family Foundation.
Indeed, that outsized growth has been the case in at least 12 of the past 18 years. Since 2000, premiums have risen 87 percent while wages have only gone up 20 percent and inflation has increased 18 percent.<<
On the privatization of Medicare Pard D (prescription drug) coverage: from WebMD
>>Administrative Costs
The report concludes that administrative costs run nearly six times higher in private insurance companies than in Medicare's traditional fee-for-service programs. According to the report, $4.6 billion went to into administrative costs and other company expenses in fiscal year 2007. Nearly $1 billion of that amount was steered toward insurance company profits, the report concludes.
The report also criticizes insurers for gaining smaller cash rebates from drug companies than the Medicaid health program for the poor typically receives.<<
From epinet.org (Economic Policy Institute), on Medicare's administrative overhead:
>>Medicare is a widely popular program, but its pioneering
role in restraining health care costs is one of its many unheralded
successes. Over the past 30 years, growth in spending
per beneficiary has been slower in Medicare than in the
private sector, and Medicare’s overhead costs are tiny compared
to those of private insurers. However, with demographic
changes (like longer life spans and the aging of the
baby boomers) and the high cost of health care in the U.S.
overall, Medicare spending, like all health care spending, will
rise substantially in the future.<<