It's Your Wallet.

The following is political so I’m sure I'll piss off many, many people.

One thing to understand about economics is this: All transactions in the marketplace are ADVERSARIAL.

What do I mean? Overly simplified, anyone trying to sell you something wants to charge you as much as they can and you want to pay as little as you can. McDonald's would love to be able to charge you $20 for a Big Mac, you'd love to pay 24 cents for it.

In the workplace it means this. Employers want to pay you as little as they can and squeeze as much work from you as possible, you want to do the opposite.

That's what I mean by “it's all adversarial.” You had better know what team you're playing on and why would you give the opposing team your help?

Business, major or minor, lives by deception. They rely heavily on the “lie of omission” which means they don't give all the information which might make you cast a leery eye on them. Business spends a great deal of time and money trying to create a sense of good will. Believe me, it's not for your benefit. It's all about profit and getting you to buy their service or product.

Business wants ONE thing and one thing only. Your assets. Make NO mistake about how the game is played.

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Medicare has come up as an issue in this campaign. The belief amongst the far right wing in the GOP that any type of “socialized anything” is bad. Medicare is a kind of socialized medicine. The Marines are supported by taxes and by definition, are socialized. Anyone and everyone who works pays taxes pays for this upkeep so ALL can benefit from it. The GOP feels this is a sin. They would want the private market ONLY to minister healthcare insurance and don't forget about Blackwater, the privatized army they used in Iraq. To the GOP, privatization is a panacea.

The Ryan Plan calls for giving people $7,000 vouchers (that money comes from taxes) to use towards purchasing a private healthcare plan when we retire, specifically those who are 53 years old or under.

Know this, insurance companies exist to make money. Simply put, they make a profit by charging the customer as hard as they can and cutting all their costs as deeply as they can.

What's a cost to an insurance company? Anytime you make a claim is a cost. It's in insurance's best interests to keep claims to a minimum. Insurance would make out like a bandit if you paid all year long and never used it once.

Now, think on this, your health may be fine now, but what will it be when you turn 65? I can tell you this, even if your general health is stable, you're NOT going to be on the top of your game at 65. No matter what. The statistics on 65 year olds concerning health are far worse than anyone younger. We age and things slowly break down.

 

Do you honestly think, insurance companies are happy with taking on a whole boat load of retirees who used to be on Medicare? The elderly statistically, hit up the medical field more than any other age group.

Again, insurance wants to lower costs, and a bunch of retirees are going to cost them by making claim after claim.

Insurance has an answer though. And I suspect future changes in laws and regulations will help them...and NOT you.

I suspect insurance would love to write policies like auto insurance does now. The higher the risk you are, the more you pay. Who gets the cheaper auto insurance? The married 35 year old guy who has been working at the same job for 15 years and living in the same house for 13 years...or the 22 year old male who has two DWI convictions?

Who do you think will pay cheaper insurance on health? The young 20 year old with no chronic problems? Or the 65 year old who is nursing some cardiac issues, osteoporosis and a hint of diabetes? All those conditions get worse as he ages.

You want to pay for private insurance when you're 65? Do you think now, you'll be healthy then? Are you sure? The statistics will prove you wrong. You age, you break down.

This will make you puke. Blue Cross of RI has a family plan called 5000/10000. The costs are for today and NOT when your turn 65 many years in the future.

Premiums you pay for the year and NEVER get back. $5,904.

Deductible you pay and NEVER get back. $10,000

Add those two up. You have to blow through your deductible before any of the insurance starts paying.

It comes to $15,904.

That's now. That's with today's insurance regulations in place. And since when has insurance ever gone down? Insurance regulations can change with the wind too.

For a lark, let's pretend it stays the same when you hit 65 and none of the regulations are changed. This means that pre-existing conditions can't be used against you. We'll use Ryan's $7,000 voucher too.

You will pay, even with Ryan's voucher, $8,904 per year. Do you have that figured into your retirement plans? If Medicare by then is gone or severely weakened, where will you go for coverage?

But we both know these costs will rise. Also, we both know insurance will lobby gov't for favorable legislation that profits them and not you. Remember when I said “it's all adversarial?”

Insurance wants the pre-existing conditions block back. Now imagine if you turn 65 with some major diabetes issue? Or a cardiac issue? Insurance hates that! It'll cost them profit! If insurance is lucky to bring back the pre-existing clause, you'll have a fun time trying to purchase private insurance if you're sick. Many will outright deny you. Or if you manage to get a plan, I'm sure those premiums will be so high you'll be broke soon. Where will you go then? Remember, Medicare by then will be gone or weakened if Ryan has his way.

You may disagree, but this is how I see America. There are two classes. The Business class and the Consumer class. Which one are you? Are you acting like you are on the team your on? Or are you foolishly helping the enemy?

If you want to pay for private insurance when you hit 65, go right ahead. But I am not going to do a damned thing to help the ones who wish to sell me plans that are not in my best interests.

Business wants ONE thing, your assets. Are you smart enough to know how to keep ahold of them?