Greedy Democrats at war with insurance profits

Washington Post:

Now they have an enemy.

For months, President Obama and his administration waged their fight for a health-care overhaul without a clear opponent, even courting the industry executives and interest groups that helped kill reform efforts 15 years ago.

But attacks on the leading Democratic reform plan this week by the insurance lobby left little doubt that two of the most powerful institutions involved in the debate -- the White House and America's insurance companies -- have abandoned any real hope of forging a compromise. What was a tenuous truce has turned quickly into an all-out battle, with both sides ratcheting up the hostilities and their rhetoric.

As the Senate Finance Committee on Tuesday approved a broad, 10-year, $829 billion bill to remake the nation's health-care system, Obama's top advisers and the insurers moved into a new, more intense stage of conflict.

"The insurance industry has decided to lead the charge against health reform, and everyone recognizes their motives: profits," said White House deputy communications director Dan Pfeiffer. "We are going to make sure they can't sink this effort at the last minute."

Pfeiffer castigated the industry for releasing a report Monday that concluded the Finance Committee bill would increase costs to consumers. "They made themselves a very good foil," he said.

The insurers, however, showed no sign of being chastened. America's Health Insurance Plans, the industry trade group, opened a fresh line of attack with a multistate advertising campaign warning that senior citizens enrolled in private Medicare plans could lose benefits under the legislation.

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It is pretty typical of Democrats to demonize profits. Of course without profits these companies would pay no taxes to cover the cost of Democrat spending sprees. They also would not be able to invest in new products and coverages.

What we are really seeing here is Democrat greed. They want to take money from the insurance companies and from senior benefits in order to redistribute it to constituency groups whose votes they hope to purchase.

If the Democrats succeed with this risky scheme we will all be worse off, because they will sharply drive up the cost of health care for most people. It will cost more for the already insured and for seniors and will not significantly expand coverage for the uninsured.