Insurance Compaines: Democrat Health Care “Reform” Will Ruin Private Sector Insurance

And of course it will. As far as the liberals are concerned that’s a feature of their plans. That’s why Obama is giddy about plunging stock prices for insurance companies.

Colorado insurance executives, cautious supporters of health care reform throughout the past year, are now warning that current proposals could cause a “system collapse.”
At issue are what insurance companies consider absurdly low penalties for people who choose not to buy health insurance.
Their concern: People will buy insurance only when they desperately need it, such as after they’re diagnosed with cancer or heart disease.
Healthy people might choose to pay the penalty, now proposed at a few hundred dollars per year, because it is far less expensive than buying insurance.
Insurance companies, under that scenario, would end up spending more to treat patients than they would receive in premiums. Rates would rise even faster than they do now.

The whole point of their health care reform isn’t to empower Americans with more choice on health care. It’s to lock as many people as possible into government health care. That’s the goal. And they can’t do it with just an outright nationalization of the health care system. They don’t have the political support for that. So they’re going about it obliquely. Under the guise of creating some sort of government-backed “option” in the health care markets, ostensibly to give Americans more choice on health care, they’ll also create a tax and regulatory environment that makes it all but impossible for private insurers to continue to operate.
They may not draw that noose tight immediately, but once the government-backed option is in place there will be a forced march of Americans onto that “option” at the head of crack downs on private insurance.
The goal here is government dependence. Destroying the private health insurance industry is a means to that end.