Thursday, July 30, 2009
I have wonder for a while why corporations are not in favor of a single payer, or at least a strong public plan, for health care. It would remove a large burden from them. They would no longer have to provide health care.
I heard an answer to this question to day from Thom Hartmann.
Many, if not most, of the large corporations are self-insured. This means that they collect the premiums and hire an insurance company to manage the system. The corporation keeps the premiums and uses it to pay the insurance claims of their employees. The employees' premiums pays their health care costs.
And guess what? At the end of the year, if it is done right, there is money left over, just like an insurance company. That money left over is call PROFIT. That's right. Corporations are making money off of their employees' health care, just like an insurance company.
They don't want a strong government program because it will reduce the profits of the corporation. And we all know that the primary purpose of a corporation is to make a profit.