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Readers share their experiences of health care in the USA.

A KKB regular writes:

Hi Karen

While this is not actually a tale from the sickbed, it does highlight the practices of Wallstreet and the insurance companies.

This is a link to a recent article in The New York Times.

Private insurers have done a lucrative business selling life insurance. As with any other insurance, they are betting on many factors. One being that you will let the policy lapse when you no longer feel the need for it. (Kids are grown, household bills are already covered, etc.) Hence, every payment was nothing but profit for them. Unless of course you wish to cash in the policy for a small portion of it’s value.

Now in steps Wallstreet. These yahoos want to buy up some of these policies at a higher margin straight from the insured. It’s a wonderful investment, dont’cha know. Another one of those schemes “streeters” come up with that will damage all but the wealthiest of Americans.

And of course, because the insurers are now losing part of their hedge bets, premiums will go up.

So I ask you? Should the government intervene? Or is this another instance where for the “sake of capitalism”, the free market should be left to its own devices to rape and pillage at will.

1 Comment »

  • DS
    September 9
    6:27 pm

    Disaster in the making. I’m surprised that the packaging idea didn’t come up during the height of the AIDS epidemic when several people I knew sold their life insurance to cover their medical care.

    I would be sanguine about government intervention in the US if I hadn’t heard a recent news story about the SEC investigations into Madoff– 5 times! All investigations resulted in finding no wrong doing. The only explanation the SEC can give is that the investigators were inexperienced. And this was with whistle blowers offering facts!


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