The One Part of Obamacare I agree with

It is no secret that I am not a rabid Obama supporter. I feel the man is not qualified for the job he holds (no, I'm not a birther. I am simply alluding to the fact that he has very little experience for the most powerful executive position in the world.)

But, that being said, one aspect of the proposed medical reform package actually makes some sense.

A lifetime ago, I used to sell heath insurance. I know a little about this.

Ever wonder why most people get their insurance through their employer? The reason is 'adverse selection '. Insurance is about risk. We buy insurance to cover us for the chance something bad will happen to us that would be devastating financially (house burn down, we get sick, etc) . By pooling large groups of people together, the insurance company can run statistics and perdict about how much claims will be, and can figure out how much everyone has to pay to cover the claims (and a make the company a profit).

Sick people are more likely to want to buy health insurance than healthy people. If you try to buy health insurance on your own, the chance that you are healthy and being careful is small, but the chance that your sick and want them to pay your bills is large, hence a larger bill.

Group insurance (like the policies sold to employers as part of a fringe benefit package), though, covers the healthy and the sick. The reason the people are being cover is because of where they work, not their health status. Thus, group policies are way, way, way cheaper than individual polices.

Part of Obama's idea (if you can call a bill originating in the House or Senate Obama's Idea) is to mandate health coverage. This would reduce the amount adverse selection, and allow individuals to start getting much rates.

While it makes sense, I do worry about the government saying "you must buy a product, even if you don't want to."