Obama has a few key points with which he pushes his health care initiative.  First is costs are climbing out of control.  Second is the major cause of rising costs is health insurance greed.  Third is the only force able to compete with the greedy insurance companies is the government.  The funny part about this is that these main points are pretty much self defeating with anyone who has any knowledge of free markets and the slightest critical thinking skills.

Costs.  The only environment where it is possible for costs to climb out of control is one that is not market based.  In a market based system it is impossible for costs to bankrupt anyone.  Between Medicare, lack of state portability, and employer provided insurance we’ve separated individuals and to a large extent hospitals and doctors from the realized cost of care.  It is that separation that allows costs to spiral unabated.  The current reform solution does absolutely nothing to address this issue therefore costs will continue to rise.

Insurance company greed.  Obama used the example that in Alabama one insurance company handles 90% of the state.  To borrow a line from Harry Potter, Obama puts his keen and penetrating mind to the task and comes to the wrong conclusion.  The only solution he sees is for the government to sweep in and become the strong arm competitor to drive down that greedy companies premiums.  A much simpler approach is to allow insurance to be sold across state lines so that it is impossible to have a situation like the one in Alabama unless it is truly offering the best solution.

Government as competing insurance option.  The notion of this is just absurd as most Americans have realized.  Government doesn’t compete it controls or dominates.  Then Obama repeated the absolutely ridiculous notion that a government run insurance option would be more efficient.  I’d like to meet the person that actually believes that.  The only way the government option can compete is to operate at a loss and it will.  It will operate at a loss until it has no more competition.  That is the intention behind those who crafted the idea.