Passing Obamacare
by
Glenn Troy Morton
Copyright 2011 Glenn Troy Morton,
Smashwords Edition
All rights reserved.
Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior written permission of the copyright owner.
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This book is dedicated to my wife Alicia, who had the love and courage to marry me, and to my daughter Taylor, who motivated me to follow my heart. You both make me the happiest man on the face of the earth!
Acknowledgements
Thank you God for choosing me to send this message. I love you…
Thanks to my mom (Iris Morton), my Grandma (Iris Fagans), my brother (Davaughn Paige), my wife (Alicia Morton), my children (Taylor and Levi Morton), and my step-children (Abby and Jakobi Bradford) for the love and support. I love you!
My deepest thanks to the people in my present, and my past, who shared their knowledge with me over the years. You contributed greatly to the creation of this publication, and I appreciate our lively debates on the issues of the day.
Many thanks to the wonderful and intelligent co-workers who have suffered through my diatribes over the years: Mark Reid, Howard Rankin, John Gardiner, Dan Donoghue, William Bacon, Joseph Finzel, Jessie Gittens, Halbert Carmichael, Nader Barakat, Lennie Moore, Dawn Page, Dorothy Jackson, Colin Romine, Robert Beja, Ann McDermott, and Christina Zettner.
Special thanks to the numerous “best friends” I’ve had in my life: Mark Dennis, Kevin Chichester, Malcolm Stewart, Meryl Williams, AfriyeAmerson, Michelle Smith, Marla Weaver, Patrick Barnett, Randy Gray, Cedric Harrison, Terrance Hill (who told me to stay true to myself…love you, man!), Jerry Harper, AlodieMaytas, KhaliphaTijani, and Crystal Hines (who told me once that I was enough…love you!).
Extra special thanks to those whose acts of selflessness and kindness inspire people like me to reach beyond the boundaries of our lives and make the world a better place. Whether Democrat, Republican, Tea Party, or Independent, your contributions to the greatest country in the world are truly remarkable!
Super Extra Special thanks to Victor Dorobantu at MyCaricature.com. He's versatile, inventive, and phenomenal artist...much more than a typical caricaturist. It has been a real pleasure watching the image in my head come to life by his hand...
Table of Contents
Wake Up Call
Better to have bad luck
than no luck at all?
Out of Many, One
One of these things is not like the other
Obamacare…Do you want this?
A solution that isn’t this, doesn’t do that,
and won’t offend anyone’s morality
Foundation of Change
The Way it is
Prologue
An Open Letter to President Obama
Hey President Obama,
What’s up! How the heck are you? It’s been awhile since we’ve gotten together. I imagine you’ve been busy, though, so I’m cool!
Listen, I’m sorry to reach out to you in this way, but your BlackBerry’s going straight to voice mail, and I’m pretty sure I’m not in your “5”, so I didn’t know what else to do. I’m starting to think you’re forgetting me, what with new friends and a new job taking up your time.
I remember you.
You were my best friend once, weren’t you? We used to have so much in common. We were both outsiders; never quite fittin’ in no matter how hard we tried (and we tried awfully hard…LOL!).
Do you remember letting Nancy lock you in a hall locker in 7th grade because she said she’d kiss you?! I can’t believe you fit into such a small space with ears that big! How did you breathe? I understand why you squeezed in, though…she was FINE!
I also recall Harry convincing you to smoke weed for the first time. I told you he was a pothead! I’ve always wanted to ask if getting high was worth the beating you took when you got home. Even today, I get ghost pains, and I just heard what happened :o)
Man, we hung together constantly! We never could score with the ladies (except the one time with Sarah and Michelle B…that was WILD! I still have paw prints…), but were probably the only 2 guys in Punahou High who could, on Monday mornings, cite chapter and verse of the previous Sundays McLaughlin group…
Like you used to say: “Bro’s before Ho’s!”
Remember when we read the Encyclopedia Britannica after school? Your grandma would make us those ham and pineapple sandwiches with a tall glass of papaya juice. She loved us kids so much, I wanted her to be MY grandma. I miss her!
Hey…did you know I dreamt we would be in the encyclopedia for something one day? I’d be president and you’d be MVP of the NBA! Crazy dreams, huh? You couldn’t dunk and I’m black…no way we had a chance!
Well, at least not until you. Now, I’m practicing my jump shot and takin’ my talents to South Beach!
I mean…you won, B-Easy! You actually WON!
Who cares if no encyclopedias are being printed? If they were on the shelf, a whole chapter would be dedicated to you!
I didn’t get a chance to tell you this when everything was going down…too busy celebrating, I guess.
But…B-Regal, I’ve never been so proud of someone in my whole life!
President Barack Hussein Obama, indeed!
To witness you taking the stage, becoming President of the ENTIRE FREAKIN WORLD! Who would’ve thunk it? You always wanted to be the best at everything, but you certainly outdid yourself this time. It says a lot about you that you could convince the whole country to even consider electing a not-only-white president.
It was so hard being biracial in our younger days. The teasing, getting bullied, and never hanging with the coolest guys in school…
America is a strange, wonderful place, huh?
Hey B-Dazzle, this may be a little off topic, but I wished you had my back when Bully McCain punched me in the face for kissing Olympia. I should’ve just fought him myself, but I didn’t possess the heart to beat him. He’s so mean, and I’m not. I might’ve had more balls if I knew you would fight with me. I thought you’d do anything to help me, being my best buddy and all.
But…water under the bridge, right?
Now you’re President, and everybody’s lining up to be your friend…even the ones in Indonesia who threw rocks at you and made you eat lunch off the floor in Cub Scouts! They never spoke your name while you were in the state senate, did they? I guess saying kind things is easier if you’ve got your hand out. How much foreign aid do we give them, anyway? You should make them donate a hefty contribution to the presidential library, or build an Obama statue smack in downtown Jakarta!
And the Hawaiians! OH MY GOSH! So funny you’re a “native” son now, when the Mokes treated you worse than Haole on Kill Haole Day. I didn’t think bandwagons were waterproof!
You and I, though…we are real friends!
Remember going to the b-ball court after class and schooling ‘em? You handled the rock, and I manned the paint! Even if Haley, Joe, Eric, and John wouldn’t let us play, we just played after they left and still had fun, right? No need to take a beating and come back for more in those days!
Plus, at least we had Bobby J. to pick on…
Seems like so long ago! I should’ve known you’d follow your dreams to the big stage! Extremely proud of the political career, dude…brings back many good memories when I watch you and Michelle dancing repeatedly on YouTube. Such a tear-jerker!
You always said getting to class a few hours before everyone else would pay off. I’m happy things worked out for you, and even happier to be able to call you a friend. I miss the moments we spent together.
They were good times, huh?
What are days like for you now, B-Riddle? I’m worried about you whenever I see you on television. You look different. Heavier, if you know what I mean…
I started noticing the change right after you got elected. Having so many humans put their hopes and dreams on your back is pretty heady stuff. I don’t suspect a person in the history of the world has had the amount of people wishing stuff on them as you have had wished on you. Even Jesus Himself didn’t inspire followers from Egypt to Philadelphia, only to hear Fox news talking crap about Him afterwards. I genuinely felt for you, carrying so much pressure on your shoulders...
…until I realized you asked for the burden.
Hope and Change, remember? How ‘bout “We are the change we have been seeking”? “Fired up! Ready to go!” perhaps???
Hmmmm…
You promised a ton, B-Diddly! You could’ve guaranteed good governance, a return to prosperity, or something human beings can actually measure, and left well enough alone.
Instead, you pledged transformation. Did you plan to deliver on a promise so huge?
Maybe you had no choice. The election of the first black President, in a country with our history, is transformational in and of itself.
However, from my vantage point, it seemed like you wanted Gandhi/Martin Luther King-type love, and you got it. You enjoyed wowing us with your mastery of words, didn’t you? It must feel pretty powerful to hear millions chanting “O-Bama!” whenever you have something to say. Hell, if my wife ever chanted my name because I speechified (or chanted my name, period :o), I would be so full of myself, my head would explode!
You had Germany at hello!
Oh, and are you kidding me? The Nobel freakin’ Peace Prize!? You haven’t even peed on the Presidential toilet seat yet!
I guess it’s dawning on you by now that wanting is one thing; promising is quite another. Promises must be kept, or else you’re a liar. Could the reason for the heaviness I noticed in your eyes be the difference between speaking as an inspirational figure and governing as a President? As important as he was, Martin Luther King never ran a country; he only talked about it…
B-Diesel, please don’t take this the wrong way, but stubbornness isn’t one of your stronger personality traits. You talk a good game, yet are too considerate at times to stand strong against the opinions of others. You’re like the point guard who runs an offense well, and is blessed with knowledge and nuance few can claim, but looks for the open man to make the winning shot. Great attribute for a team player; not as useful a trait in a President.
As President, you gotta be Kobe or Mike, not LeBron. Your determination must be to win, not to be a key part of a winning team.
There is a difference, and the difference is heart...
As Achilles said in Troy: “I want what all men want. I just want it more.”
When you cause people to believe you can provide the power to positively change our country by voting for you, you should own not only the cahones to say it; you need the steel to get it done.
You must possess the will to win, even if you have to be an asshole to get there.
Do you recall your predecessor? The one everyone hated because he was completely and unapologetically wrong about so many things? Remarkably lacking in intellect…the “C” student who invaded Iraq on the vague notion that Arabs and Persians would see democratic freedom and want some for themselves? Remember the millions of people around the world who cursed his name, burned him in effigy, and made him out to be the anti-Christ? How about the footage of Saddam wiping his feet on a rug with the President’s face on the top, or the “intellectual elite” who thought he was so stupid because he couldn’t enunciate his words correctly?
What was his name again?
Oh yeah…that Bush guy! He was a major league ASSHOLE!
And he was freakin’ RIGHT!
I don’t want to give him one ounce of credit, but I can’t avoid the YouTube clips of him talking about spreading democracy in the middle east and people rising up to overthrow their dictators. I keep contorting my mouth to say “Well, even a broken clock is right twice a day “, yet can’t turn on AL Jazeera without feeling like a jackass.
Arabs eyeballed images of purple fingers and free Iraqi’s and wanted some of the free vote thang for themselves, and are now toppling governments all over the Middle East like dominoes!
Rather than blame us for their problems, they were offended, and inspired, by our bold action to change their circumstances. We put our blood and treasure on the line for their freedom, and now they are too. And, true to our word, we didn’t take one dime from Iraq. We’ve actually given quite a lot of money to Iraq, and all the expertise we had to offer. Iraq is now free because of us, and not Al Qaeda.
So is Egypt, which is where Al Qaeda was born and raised, and 9-11 actually began. How many of them do you think are planning to attack America now?
The threat level has to be pretty damn low, unless you’re Anderson Cooper.
What size balls did the man possess to catch such considerable crap from everyone and still do what he thought was right? How much security must live in his soul to enable him to take on all comers and stick to his guns?
He had a freakin’ SHOE thrown at his face, for Christ’s sake! TWICE!!
Even I hated his guts, and now I’m enjoying a little hot sauce on my crow, thank you very much; it taste better fried, by the way…
The reason you took a shellacking in the 2010 mid-term elections is your apparent unwillingness to stand up for us. Didn’t you know we’d back you up?
America loves you.
I’m not saying you aren’t accomplishing a lot; you are, though the accomplishments so far are easier to pass when a President is working with the largest legislative majority in Congress since the Great Depression and no members of the opposing party who want a say.
I’m saying you’re not accomplishing enough, because you promised transformation, and you haven’t taken a shot to win the game.
The game isn’t pay equality, gay rights, consumer protections, or saving Wall Street. In basketball parlance, those actions, and the dozens of similar ones, are terrific assists.
The game is one class of people taking wealth from the other, even if they have to bankrupt the entire country in the process.
The winning shot would be punishing those who are stealing money from us; who are taking away our homes, our jobs, and our worth. People who are partying with our retirements and foreclosing on our children’s’ futures; the ones concentrating our wealth into their bank accounts.
The clutch 3 pointer is putting the worst of the lot in jail. Do you doubt their actions were intentional? Any questions about their efforts being coordinated and designed to buy the political and financial influence needed to take as much money from us as possible? Didn’t they try to hide their manipulations? Are there laws on the books allowing them to steal from us? How can other countries trust us enough to do business openly when we’ve identified the crowd who stole from them and decided not to prosecute? Does this make us complicit? Are ANY laws enforceable that can take our pound of flesh, and give people their money back?
Our criminal justice system is about retribution, after all. Why aren’t you using it? My momma told me there wasn’t a better way to stop being bullied other than punching the guy right in the mouth!
What’s the matter with you, B-Rock? You didn’t even put your hands up…
The real game going on, Mr. President, is shifting power back to the people in this country, and not leaving our legacy, and yours, with the few who…what were your words?...”ran it into a ditch”. If you don’t man up, we might be hanging out again sooner than you think…
And, FYI, I’d be so totally cool with that! You Da’ Man, B-Vitamin! Don’t forget to send me another Christmas card, ok?
Well, enough about you. You want to catch up with me too, right? :o)
Lemme see…
Oh! Did you know I’m an insurance broker now? Yep…been one for almost 10 years and in the health care biz for about 17. I’m doing pretty well, though I’ve hit a rough patch lately.
Actually, that’s the reason I’m writing you.
I’ve been reading up on ObamaCare, and I wish you had called me first before signing off on this thing. I mean, we were BOYS before you became President. You should’ve trusted me to get the scoop. I had your back, B-Reezy; you are President now, and I am American. It’s unpatriotic for me not to pitch in, and you damn sure needed assistance.
You asked for help too, if you recall. You didn’t just mean my money and my vote, did you?
I thought not! B-rizzle fo’ shizzle!!!
The Patient Protection and Affordable Care Act is awful! I can’t believe you signed off on this. I want to give you the benefit of the doubt because we are friends, but suspending disbelief can only go so far.
Do you realize you just enshrined giving over 17%of American wages to insurance companies into law? Why would Americans giving up so much and receiving so little in return be the best idea? The amount of money needed to take care of our health doesn’t surpass 17% our lifetime incomes, so the insurance to protect us from the risk shouldn’t be over 17% either, right?1
What the heck were you thinking?
Our problem with the uninsured is singular in nature, not systemic. People without insurance go to the emergency room for emergent and non-emergent care, which artificially drove up premiums for the rest of us.
This IS the main issue, right?
From my recollection, the unacceptable fact requiring change to the ENTIRE healthcare industry was the unaffordability of coverage, which increased the number of uninsured, which further drove up the price as people used services without paying for them with insurance, which increased the number of folks who couldn’t afford protection, yada, yada, yada.
The whole vicious cycle thing...
Your solution to this one problem is to increase costs, increase coverage, and force enrollment by penalizing employers and employees for not getting health insurance?
You couldn’t find a better answer than THAT???
Oh, I forgot…YOU didn’t craft the legislation; you let Congress figure it out. You passed the ball and told ‘em to come up with something. Are you surprised they discovered boilerplate; a plan already in existence in Massachusetts…the state with the highest health insurance premiums in the history of America?! 2
B-Rabbit, you didn’t shoot the rock when the game was on the line. You dished a freakin’ pass…
Had you taken your best shot, maybe you could’ve kept the promises you made to us. Like the ones where you said “no individual mandate”.3
Hey! …What about the ones where you’d go after the insurance carriers for overcharging us, or march hand in hand with unions?4
Promises…promises!
Are caps on what an insurance company may charge present in the health reform law, and I missed ‘em? Are things in there which will reduce costs from what we are paying NOW? Does anything in ObamaCare break up the monopolies and duopolies health insurers have in EVERY STATE IN THE U.S., providing the much needed competition that has proven to bring prices down in every other industry? Did I miss those parts when I read the law? I mean, 2409 pages is a lot to unravel…
Is nothing included along these lines?
Well????
Listen, Mr. President: I’ve gotta go. Sorry to end here, but someone’s at my door, and the banging is getting louder. I think the sheriff is trying to foreclose on our home again. I read an article the other day about squatting in your home. Apparently, the bank can’t take the house if they lied in their documents, so I’m not overly worried about being kicked out. My wife and kids are more nervous than I am.
Just wish I could find a better job…
Be Easy, B-ruddah!
Glenn Morton A.K.A. Khaled Said
P.S. Oh…I forgot! I wrote this book so you can clean up this pile of donkey-doo . Please read everything, OK? You PROMISED you’d listen if someone had better ideas.
Promises…Promises :o)
P.P.S. I got next on the new b-ball court I heard you built in the White House, and I’m definitely clownin’ you if your face is on half court.
Being President is cool and everything, but you ain’t all that!
Preface
Why this book was written
In informational times such as these, the voices of everyday people will become the primary ones heard on human existence due to the increasing adaptation of the internet to every aspect of humanity.
In other words, the rich and powerful won’t be the main way we learn stuff; we will control content.
Until that time comes, it is incumbent upon those of us who KNOW how to overcome challenges in our society to share information with the rest of us, as this will not be an easy transformation.
Power does not cede ground lightly, but will cede it nevertheless.
Hopefully!
This book was created with the idea that its existence will inspire others to share knowledge, creating a reliable way for us to educate ourselves. Recent history teaches that, in addition to trusting the sources of information largely out of our control, we should respect our own sources, voices, and expertise. There may come a day when the knowledge contained in this book, and others similar, might save you money, time, or even your life.
Hopefully…
The Internet proves we possess a wealth of intelligence among us and between us, clearly demonstrating that humans exist who, though they aren't wealthy and visible enough to speak on television or write for the media, grasp the best ways for you to protect cash, recognize a scam before becoming victimized, offer simple and effective treatments for illnesses, provide better methods of exercising legal rights, and more!
It can go and on and on and on!
In every industry, there are people making decisions and people carrying them out. Doing always brings forth more useful knowledge than deciding. It not only allows choices to be measured, but provides fuel for generating more decisions.
This idea is for the doers. You know who you are, and we need you to compete with the paid prognosticators and opinionators who might offer something better had they performed the tasks before sharing their expertise. If they built the car, took care of the patient, fired the weapon, or sold insurance, we wouldn’t need to be our own reference material. More often than not, they don’t. They do get paid to talk about it, and to advance their opinion or the opinions of their employers.
You’ve encountered doers in customer service departments. Have you ever spoken to service representatives for a serious issue and they kicked the problems butt in less than 5 minutes? Well, they likely understand more and get more stuff done than everybody else around them. What about the really good financial planner who recognizes why companies do the things they do, and can help you avoid the next economic meltdown…which you realize is coming again, right?
Imagine if some honest mortgage broker, who witnessed exactly how people were being defrauded a few years ago, had a way to warn us. If he or she made more money writing an easy-to-understand guide, instead of participating in and profiting from our financial destruction, many of us would have been saved from toxic mortgages and the impact on our families of poorly informed housing decisions.
Imagine if we had a trusted method to help defeat the unsavory things corporations do to get money from us, and governments do to take money from us. Would you pray the knowledge reached you and your family?
If you know a reason why a certain law should pass (or not) relating to your line of work, and you feel in your gut that, if we understood what you do, things might be a lot better, would you want a way to help the rest of us? If you shared, you may improve the lives of thousands; hundreds of thousands, potentially even everyone.
Remember…we only get taken advantage of with our consent.
Every dollar you earn is split amongst different groups of people for maintaining the way you live as an individual and we live as a society. The federal government takes their share, as does the state, the county, the city/municipality, and the corporation.
Lack of money also reduces the ways we could live, or would prefer to live…
These numerous entities are more powerful than you and I; they thrive by having control of the flow of information and by maintaining a significant stake in your dollar.
It is necessary for you to exert yourself.
If we found a way to navigate the unfamiliar, or things too complicated to understand, the knowledge should bring us closer to keeping more of our earnings and living preferable lives, not merely acceptable existences.
Anyone interested in sharing their expertise with the rest of us must adhere to a few ground rules:
* You MUST be honest.
* You MUST be able to back up/verify what you say with facts.
* You MUST attempt to make whatever you write easy to understand
* You MUST give a bio of relevant experiences, and share motivations for contributing
If you do not have enough material to create an entire book, don’t worry! I endeavor to release information to the public, so I purchased a domain called www.TheInverse.com . I like the name because, in mathematics, “inverse” means “containing two variables such that an increase in one results in a decrease in the other”, and this is totally what I’m trying to do!
Plus, “inverse” sounds like a combination of “Internet” and “universe”…cool!
I plan for TheInverse to have the capability of gathering whatever information you wish to provide, and make submissions easy to find when you need to learn something.
I also envision creating a way to vigorously debate the submitted content and other relevant news topics as well…so bring your “A” game!
What I will NOT do is leave people to their own devices any longer. We already see the impact on everyone when the sources of information and profit are the same, and better decisions by the individual means better behavior from the collective.
I’ve already started The Inverse as a blog. Now, if I could just find someone to help me build it as a website…
We all hold greatness within us. The book in your hands, or on your screen, was inspired by 2 thoughts: to stop a law requiring so much from us and our children, and to issue a call to all who are truly knowledgeable in their industries, and in their particular jobs, and get them to teach us what we need to learn!
I’ve written what I know.
Tag…You’re it!
So help us and help yourselves…get writing!
Oh…and tell a friend!
Even better, share this book with the bank teller who just helped you out of a jam…she might have the combination to the safe :o)
Introduction
In a quiet moment, alone with my foreboding, I wrote an entry into a blog that I never published, because it was meant for me. Sometimes, when I write, the words come through me, not from me…
When I ran across it again (just before I was going to publish this book), I had a thought to put it here:
“I know nothing. I have many opinions, of course. I am just not clear on what God wants from me, nor on whether or not there is a God, or even a source from which all things spring forth. When I decided to start a blog, I was going to write about being a Dad, and how challenging and rewarding it is to raise a baby girl. Then, Obamacare passed. At first, I thought it might be OK. But it isn’t, so I was going to write about how hard it is being an insurance broker instead. Then I was going to write about having hope in the face of insurmountable odds. Then I was going to write about how some odds are insurmountable for a reason and how, sometimes, you need to cut your losses and live your life. Then, I was going to write about...Oh, who gives a shit about what I have to say, right? I mean, that's been my issue all along: No one gives a shit about what I have to say. Not Democrats, whom I voted for, placing the knife firmly against my back; polished tip dipped in ink to draw the PPACA tattoo across my weakening shoulders. Not the Republicans, who can't put two sentences together about Obama without one of them being some version of Fuck You! Not the Tea Party, who could be a full third party, but never misses an opportunity to find fault with everybody else instead of creating something great. Health insurers don't like me, and are cutting me out now that they will have permanent monopolies and won’t need my help getting customers anymore. My clients and employees give a shit, but I won’t be able to help them soon. I am where I am...
Have you ever wanted to cash in your chips and just stop playing the game? Not in a suicide way, but in a killing your existing life kind of way? Just drive down a different road and never look back? Maybe move to a country where the dollar stretches from coast to coast, the sun always rises in the morning, and you can build a life that doesn't bring along your troubles? A place where you can begin anew...
You know why I don't? Attachments. I love my children, and their lives would be worse without me. I love my wife...and I know she would not be OK if I left, much less better. She loves me more than I deserve, and it shines through every time she tells me to pick up after myself...every time she laughs at my jokes. I love my job, and my clients are much better off for my skepticism and inquisition.
Maybe I'll be OK. Actually, I'm more sure I'll be OK than I should be.
There are people in my life that will always be in my corner, in any way that I need, and they are my family. No one else. Maybe, if they knew me better, they wouldn't be. I mean, there is ample evidence that my corner is not exactly teeming with volunteers. But they love me because of who I am, which is how I love them. Everyone else loves me for what I can do for them. Not just for me.
So, are odds really insurmountable? Can you really turn the tide? Can I really turn the tide? Well, if you're reading this, then you are about to find out, because my back is against the wall in almost every area of my life, and I need a way through, or a way out. I will tell you, though, that I'm not exactly optimistic, considering my track record since this law passed. But if I don't believe in me, who will? I have but one life on this earth, and then I'll die just like everyone else. It's time I live for more than just me, and put some checks in bigger boxes for once.
We need to win this healthcare fight. We need a change…”
…so I did. I changed, and I am honored to contribute the first edition of what I pray will be many contributions to come. As you’ve read, federally mandated health insurance is now law. Your opinion of it would be enhanced if you understood insurance the way I do.
Thank you for being open to change, and for learning :o)
Chapter One
Wake up call
I had a dream today, and it woke me up from a much needed sleep. I dreamt people were not eating, driving, hiring, enjoying experiences with their children, or doing something more important than paying health insurance premiums.
You know who you are, and so do I.
I’ve been in the insurance business longer than some of us live, and seen first-hand why many of you pay so much and receive so little in return. Likely, it’s because you think there is no choice; forces beyond your control are causing premiums to rise.
Possibly true, although the force at issue where insurance is concerned is not outside of us, but within us, and it’s a bear: a furious energy which is simply the single most powerful impulse in many of our lives. It is this relentless demon that, when it comes to insurance, I will attempt to slay for you in this book.
I’m talking about fear. What motivates insurance purchases more than fear? Fear of losing health, teeth, money, or your life. Fear of the unknown…
If you think about it, the companies providing insurance understand this, and try to gain business by using fear against you.
Listen to how they advertise for your hard-earned dollar:
“You’re in good hands…”
“…on your side”
“Like a good neighbor…”
“Gets you back where you belong”
“Go Ahead. You can rely on us”
“Together, we’re stronger”
“We keep our promises to you”
“Take away the risk and you can do anything”
“Feel better”
“Give your child an advantage for life”
These are actual insurance marketing slogans.5 I omitted company names so as not to provide free advertising here, and because some of you are likely to rise in defense of your favorite insurer, almost as if by instinct.
Do you see a pattern? By inserting a few words in between most of these slogans, you might never be afraid again!
Let’s try:
“You’re in good hands, because I’m on your side. Like a good neighbor, I’ll help get you back where you belong. Go ahead! You can rely on us. Together, we’re stronger. We will keep our promises to you. If you take away the risk, you can do anything! You’ll feel better, and you can give your child an advantage for life…”
Well, how do you feel? Secure, like a soft, warm blankie wrapped snugly around you on a cold winter’s night?
Safer, like a tightly fit condom?
Who wouldn’t want this, right? Were you aware that buying insurance meant you will always have a companion who restores life, keeps promises, takes away worries, helps you do anything, and gives children an advantage for life???
If insurance were a woman, I’d marry her in a minute…
Seriously, though: If someone told you this, and you believed them, how much cash would you hand over to them? Do you think they send you the message, over and over, at significant cost in advertising, with the idea you won’t believe them and give them money?
Well, here are a few numbers to chew on:
Number of States in 2009 where families averaged paying over $1000/mo. in health insurance premiums: 41!6
Average yearly US family premium in 2009: $13,027!!7
Health Insurance premiums as a percentage of median household income in 2008: 17.2%!!!8
Let that sink in for a minute. I’ll wait…
Now, I expect several of you might think “Well, I don’t pay $13,000. My employer picks up a portion of the premium, so I hand over a much smaller amount”. To this statement, I would only say “True, but where do you think your employer is getting the money?” Insurance premiums are part of a company’s “per employee” costs, and are as tax deductible as a paycheck. Employers factor the cost into overall compensation and pay their portion with YOUR money!
Don’t believe me? Do you recall the last time you got a raise, cost of living increase, or a bonus? Been awhile, right? Not so long ago, some of those things were expected. Back when you had to be connected to a wall to have a phone conversation, people got at least a 2-3% raise every year to keep pace with inflation, and even more if they were above average employees.
Where did the money go?
According to the US Census Bureau, the median personal income for a full time worker in the United States, as of 2009, is $47,127 for a man and $36,278 for a woman.9By factoring in a 2% annual raise, the salaries would increase $942 and $725, respectively. Had you lived in New York with a family, your health insurance premium in 2008 was $12,824 on average. In 2009, the rate was $13,757.10
The difference? $933, which doesn’t even include the higher costs you likely incurred because, to hit the $13,757 figure, many employers increased the amount employees had to pay to see a doctor or get a pill. Inflation should also be factored in, which means your dollar pays for less and less every year, by about 2-3%
Where did the money go, indeed!
I left one insurance advertising slogan out of the list. The phrase is so appalling; I thought it was worth special mention:
“…we’re not in it for the money.”
Do you know what makes the statement so laughable? Aside from the advertiser being a health insurer and obviously making a profit, health insurance exists to control the flow of money between supply and demand! What else does it do?
Health insurance companies are, in function and structure, no different than credit card companies.
I’ll expand on some of the similarities within the two industries in a subsequent chapter, but please note this statement. Many people treat credit cards much differently than insurance cards. They shouldn’t, but they do. The fear of being sick or dying is greater than the fear of bankruptcy…for most of us, anyway :o)
There’s the word again: Fear. Fear of losing something as valuable as health is understandable. This book is in your hands because fear alone is not a good enough reason to sacrifice the other stuff in life contributing to the quality of it, and positively impacting the quality of your health. Things like financial stability, vacations, housing, education, or just plain old good times!
Did you realize stress is a major contributing factor to coronary artery disease, cancer, respiratory disorders, accidental injuries, cirrhosis of the liver and suicide; the six leading causes of death in the United States? Do you think this might impact insurance premiums, which are paid for health-related expenses?
I’m just sayin’…
We are now paying, on average, over 17% of our income for health insurance, and the federal government is demanding we purchase health insurance or fork over more taxes in 2014.
Something must change.
The amount we pay in premium is NOT GOING DOWN. No agency, analyst, think tank, politician, or anyone has shown we will pay less than we are paying now; they only reveal our future increases will be lower, and that metric can be very misleading.
Let me show you what I mean:
If you were told you could save 10% off of future insurance rate increases by adopting the suggestions in this book, and premiums were projected to rise 25% over the next 5 years, do you think you could save 10% of your cost, or 2.5%?
The answer is neither, since you haven’t read what the premium is now ;o)
Let’s say the premium is $10,000 per year for the average family, just to use a big, round number. With premiums projected to rise 25% over 5 years, in year 5 they would reach $12,500.
In the same scenario, would you save 10% of $12,500, or 10% of $2500, in the fifth year?
The answer is 10% of $2500, assuming no other factors. Your actual savings in the fifth year would be $250, which is only 2% of what you would have paid in the fifth year ($12,500).
In a real world example, the Congressional Budget Office (an agency that prices the laws congress creates) estimates the federal health reform law will reduce future health insurance premiums by 8-11% for people in the insurance exchanges, and other subsidized individuals, in 2016.
Additionally, they estimate the average family premium for employees of small companies will be $19,200 in 2016, which is $6173 more than the 2009 average premium of $13,027, or a 47% increase. For employees of large companies, the estimate is $20,100, which is $7,073 more than 2009’s average, or a 54% increase.11
Which statistic have you heard about the most: the 10% savings or the 54% increase?
Based on the 2009 median salary statistics referenced earlier, American women would have to increase their salary at least 2.3% each year until 2016 to match the pace.
It’s 2011 already, ladies. How ya doin’?
If you want to improve the situation, you must arm yourselves with the only thing fear is powerless against: KNOWLEDGE. I promise you will make better decisions, reduce costs for some insurances, and eliminate others altogether by learning what’s written in subsequent chapters.
If you are an employer, you can save more than half of your premium contribution by adopting some of the suggestions here, and more if you try hard enough. I will be as specific and easy to understand as possible in detailing how positive, impactful results can be achieved.
I do need your attention for the next few pages, however…
Chapter Two
Better to have bad luck than no luck at all?
A 40 year old guy named Mr. Luck, who lives in Maryland, walks into a bar and asks for a beer. It’s happy hour, and the beer costs $2. He pays $2, drinks his beer, and orders 1 more at the same price.
Clear transaction, though he might not be thinking clearly afterwards…
He gets into his car and attempts to drive. On his way home, impaired from drinking too much, he crashes into a tree, causing $2000 in damage to his vehicle.
Now, he is presented with a choice: pay for the repairs himself, or ask “someone else” to do it. He pays a fixed amount each month to “someone else” so, if he damages his car, “someone else” would pay for any repairs. He also knows that, if “someone else” paid for the repairs to his car, they would pay to fix something they did not break, and would not want to do that often.
He leaves the car wrapped around the tree and walks home. On the way, his back begins to tighten. By the time he ambles through the front door, the tightening becomes a primordial scream shooting from his ass up to the top of his head. He tries to negotiate a truce with his back by lying down on the living room couch, but it keeps getting worse. Now begging for forgiveness, he pulls out all the stops: a hot bath, a massage from his wife (lovely woman, Mrs. Luck!), and a back walk from his 5 year old son.
Nothing helps, so he gets a heating pad, contorts himself into a modified fetal position, and whimpers off to sleep.
(Can you tell I’ve had back problems?!)
When he wakes up the next morning, he can barely get out of bed. He clearly needs a doctor.
Again, he has a choice: pay for the doctor’s office visit himself, or ask “someone else” to do it. He pays a fixed amount every month to “someone else” so, if he damages his body, “someone else” would pay for the repairs. He also knows that, if “someone else” paid for the repairs to his back, they would pay to fix something they did not break, and would not want to do that often.
Mr. Luck visits the doctor, and the doctor gives him terrible news. It seems he hurt his back so badly he will need pain medication, won’t be able to lift more than 40 pounds for the next month, and will be required to wear a protective brace every day during this time. If he does not follow the doctor’s orders, his back can become permanently injured.
Mr. Luck’s job is in construction. He cannot afford to have his back injured, nor can he miss work for a month.
Once again, he is presented with a choice: Take off without pay until his back is better, or ask “someone else” to pay him while he’s laid up. He has been paying a fixed amount every month to “someone else” so, if he could not work, “someone else” would pay him a portion of his salary. He also knows that, if “someone else” paid his salary while he was out of work, they would pay for something they did not cause, and would not want to do that often.
In case it isn’t apparent, “someone else” is insurance. At first glance, insurance seems like a product that protects us from ourselves. Protects us from our mistakes…protects us from our deteriorating bodies…protects our income…protects our families when we die…protects our way of life. What you didn’t see are the details in the example.
Let’s look under the hood:
Mr. Luck did $2000 worth of damage to his vehicle, but carries auto insurance. His premium is the average for a driver in Maryland, which is $2134 a year, or $178 per month.12
If he chooses to pay for the damages himself, he will lose $2000, so he requests his auto insurance company pay for the repairs instead. They do, less the portion he is required to contribute by contract, which is $500 (otherwise known as a deductible). His insurance pays $1500.
Since they had to pay money and did not want to, they look at the situation and determine Mr. Luck is reckless and might damage his car again, meaning more payments in the future. In anticipation of having another payment, and to ensure they will have more money for themselves, the amount he will pay is increased. His premium rises 20%, and is now $213 per month. ($35 in additional payment plus his existing $178 monthly bill).
They also let other auto insurance companies know they paid for his repairs, guaranteeing the competition will charge him more based on the increased likelihood he will generate a future cost. The effect of the notification keeps him as a paying customer, and secures the additional 20%.
His auto insurer will never reduce his payment unless he asks, and only after 3 years of perfect driving. Total additional cost to him: $1224 in added premium over 3 years PLUS the $500 he originally contributed in deductible, or $1724.
Total the auto insurance company paid? $2000 minus $1724, or $276.
Mr. Luck also went to the doctor. The office visit, for someone with insurance, is $150. The brace is an additional $150, and the pain medication is $50. Rather than pay the costs himself, he chooses to let the health insurance company pay for the visit. His health insurance plan requires him to contribute $20 for the visit, nothing for the brace, and $15 for the medication, or $35 total. They cover the remaining $315. His family did not generate additional medical claims during the plan year.
Mr. Luck’s insurance did not want to pony up the money, and made payments like this for some of the people they insure who work in the same state, and for a company about the same size, as his.
They analyze the situation (as they do every year) and determine that, in order to keep up with the requests he and people like him will make, and have more money for themselves, they are going to increase the amount Mr. Luck will pay. He is married with a son, and was paying $12,541 a year for family coverage, or $1045 per month. After the health insurance increase, he is now paying $13,833 a year, or $1153 per month, an increase to him of $108/mo.13
Mr. Luck also used disability insurance since he could not work. As a construction worker, his salary was $50,000 per year, or $4166 per month. The disability insurance covers 60% of his salary while he is not able to work; they cut him a check for $2500, and he returns to work in a month.
Mr. Luck’s disability insurance did not want to pay the money, and had to make payments like this for some of the construction workers they cover in his state. They analyze the situation (as they do every year) and determine that, to keep up with the requests he and other construction workers like him will make, and have more money for themselves, they are going to increase the amount Mr. Luck will pay.
They raise his monthly premium 20%, or $7.00 per month. He will never pay a lower amount, and must work until retirement, or age 65.
Let’s look at where this puts him:
Mr. Luck’s payments:
Car:
Before: $178
After: $213
Difference: $35
How long: 3 years
Total costs: $35/mo. x 36 months =$1260
Healthcare:
Before: $12541
After: $13833
Difference: $1292
How long? 1 year
Total costs? $1292
Disability:
Before: $35
After: $42.00
Difference $7.00
How long? To age 65, or 25 years
Total Costs? $84 per year
Insurance Payments:
Car: $1500
Healthcare: $315
Disability? $2500
Total Insurance paid: $4315 one time
Total Mr. Luck Paid: $5388 for 3 years min.*
*does not consider future rate increases
Yearly premium paid by Mr. Luck for INSURANCE:
Car:
Before: $2,136
After: $2,556
Healthcare:
Before: $12,541
After: $13,833
Disability:
Before $420
After $504
Total:
Before: $15,097
After: $16,893
Difference? $1,796 per year
Mr. Luck’s salary? $50,000 per year
Mr. Luck carries 3 insurances in this example: auto, health, and disability. Even though his auto insurance and disability insurance increased 20%, and his health insurance only 10.9% (how you get from $12,541 to $13833), the amount (in dollars) he had to pay was much more for the health insurance than it was for the car and disability insurance, as the starting point for his health insurance was higher. His auto insurance was $2134/year, and his disability was $420/year.
Health insurance? $12,541/year.
Not only will Mr. Luck pay out more than he will receive in insurance company payment, but he will increase his payment for the protection by almost $1800 a year and get no additional benefit, though he is paying more money. Does this sound familiar? Many of us find ourselves in Mr. Luck’s situation.
Does it benefit him to have these insurances? Why is his health insurance so much more than his auto or disability insurance?
Chapter Three
Out of many, one.
Several lifetimes ago, a group of people came up with the idea of pooling their money to increase their purchasing and bargaining power. These “pools” of money were designed to, among other things, allow individuals in the lower economic classes more freedom, as they didn’t have to brace themselves for high cost purchases, or unexpected ones.
One of the “other things”, of course, was to create additional profit. I’ll bet you already suspected that…
Once these pools became available to the masses, more citizens lived the lifestyle of the upwardly mobile without shouldering the burden the affluent in society were prepared to shoulder. Common workers could afford transportation, housing, and better medical care. As the size of the pools increased, many sent their children to college, improved their work environment, and became potent politically, creating a wealthier and more responsible society than could have ever existed without them.
The concept of pooling money grew to take on several forms, from credit issuers to investment vehicles to labor unions to…insurance companies. At their core, however, pooling offered a way for people to improve their current circumstances using the power of collectivism and the resources of tomorrow, for a fee.
As with all good things, the restrictions of this concept started to come to fruition. The pools grew to be so large they became influential in their own right, surpassing the ability of the individuals paying into them to control them. A dependent relationship developed between an individual and the pool to such a degree that the individual was compelled, and in some cases required, to contribute whether or not a need existed. When participation became demanded, rather than just suggested, freedoms and choices were limited.
Closer examination of the most important pools suggests this might not be the best idea.
Unions
Unions (the labor pool of money) started off as a way for workers to ensure they received a fair share of cash generated from their production, which was an important factor in the rise of a middle class. In exchange for the power to improve working conditions and demand payment from employers, unions took a portion of the workers wage.
As unions grew in negotiating power and financial strength, they became magnetic to people attracted to power and money.
This element of society eventually sectioned off entire portions of the job market and made them available exclusively to workers who paid into the unions. Non-compliance with union bosses led to violence, which helped to create non-competitive job markets. Companies offering union jobs became less competitive themselves, as the union not only controlled employer access to the labor force, but also required employers to pay workers more money, increasing the profitability and influence of the pool. The financial windfall allowed unions to extend their reach into many elements of society, especially politics and government.
In addition to their original mandate of being in service to the worker, unions became self-interested and more powerful than the workers they represented and, in notable cases, the employers creating the jobs. There is strong debate within our society as to whether or not this is a positive development overall, but no disputing this fact: the more companies have to pay to produce goods, including labor costs, the more they must charge to sell them.
When non-union competitors, from America and overseas, began to increase in number, unionized companies struggled to compete as the control unions had over the job market became difficult to overcome, for workers and their employers.
The resulting reduction in the number of available jobs and higher pricing of goods and services union-dominated companies provide contributed greatly to the demise of several industries and many corporations. You can witness the effects in places like Youngstown, Detroit, and other industrialized cities grown and nurtured with union work and union money. Once thriving municipalities became areas overflowing with empty buildings and lost dreams as corporations looked for employees not attached to the “labor pool of money”. Unfortunately, some found labor in other countries.
Today, unions represent 11.9% of the US work force. 36.2% of Public sector employees (who do not face competition), like teachers, firemen, and policemen, belong to a union; 6.9% of private sector employees are members of a union. 14
At their height, unions represented 29.3% of all workers in America. 15
Credit
The credit pools of money (credit cards) were initially created as a way for companies to allow their well-known customers to make purchases without full payment at the point of purchase, with an agreement the balance would be settled at the end of each month, and a fee charged for the privilege. Most companies kept the cards on file in the store, and sent out a bill.
Soon, the idea emerged to base the credit card on the individual and not the shop, so one card could be used at multiple businesses. The bill was still required to be paid in full at the end of the month, and the credit card company received a fee for paying now what customers didn’t have to pay for until later.16
In short orders, the elements of society attracted to money (banks) realized the financial windfall they would reap by charging for the ability to pay later for purchases made now, and issued credit cards…unsolicited! They mailed out over 100 million working credit cards to Americans who didn’t ask for them, creating a permanent credit dependency in our society. The mailings began around 1966, and the law stopped them in 1970.17
This time period also happened to coincide with the most carefree, anti-establishment, drug fueled, counter-culture era in modern times.
I’m sure they are not related…lol!
Credit cards became so prevalent that, instead of remaining a way for people to afford purchases they could not pay for at the time of purchase, they morphed into an entity necessary for even basic living and an important measurement for determining the trustworthiness of an individual. We have to demonstrate faithful, timely payment into the credit pool to work in many professions, several of which are not connected to credit.
As credit permeated society, it evolved into a major influence in daily life. Most people wouldn’t even consider a person marriage-worthy if they had bad or non-existent credit. It became necessary to demonstrate contribution to the credit pool for making common purchases, like renting an apartment or a car. Individuals must pledge allegiance to the credit pool to facilitate many activities, such as communicating with another person over the telephone.
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