Issue pits planners vs. capitalists

Ed Dornlas, Las Vegas

Sunday, Aug. 4, 2013 | 2:02 a.m.

It’s time to forget Republicans and Democrats. We need to think of planners vs. capitalists, and we had better think fast because the planners are winning.

Consider Obamacare. In the days of capitalists, a young person could purchase a major medical insurance policy for a modest amount. Insurance companies grouped young people together based upon risk, which resulted in sharing the modest risk for a modest fee.

As people age, their medical risk increases, mostly due to their lifestyle choices: smoking, lack of exercise and poor diet. If a group of 60-year-olds banded together to share the risk, not much saving is possible as it would be more like an assigned risk pool for poor drivers. Premiums would be high because risk is high. Insurance companies could sell policies for a lower premium if they could assess their risk and sell less-expensive policies to healthier people.

Planners always have appealing ideas, most often based on something for nothing.

In the case of the Affordable Care Act, it’s low rates for the high-risk groups. The planners’ solution is simple: spread the risk throughout the society. In other words, socialize the risk.

Recall that slogan from past planners: from each according to their ability; to each according to their needs. We know how well that worked.