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Politics : Politics for Pros- moderated

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To: KLP who wrote (76570)10/11/2004 5:35:40 PM
From: Lane3  Read Replies (2) of 793782
 
The Government would allow the present Insurance companies that already have government contracts to open them to ALL taxpayers.....

Why would the insurance companies do that? What's in it for them? They get top dollar now from independent purchasers of health insurance. They don't get top dollar for their federal customers. Why would they voluntarily sell at the government negotiated price to people who are paying top dollar? No incentive unless the government gives them tax breaks to make up the difference, in which case the taxpayers subsidize health insurance for taxpayers, which makes no sense.

You come from a background where the Government pays much of the freight. I don't...

We've had this exchange before. It's not the government paying the freight in its role as the government but in its role as employer. Plenty of big non-government employers pay the freight, too. It's part of the employment package. Some non-government employees pay for the entire package, some pay for none. It's a function of how they want to design their compensation packages. Taxpayers and employees are two different conceptual entities. That federal employees are paid by the taxpayers (as well as taxpayers themselves) is a red herring.
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