Insurance and Big Pharma

THOUGHTS FOR A DECEMBER EVENING:

Everyone knows this story line, but few, I think understand how they are implicated in it. An honest, hardworking restaurant owner is finally having some success when he receives a visit from a sinister character. This guy tells our friend that there are vandals about and that his restaurant has been targeted by them. The restaurant owner is terrified. But the stranger puts a hand on his shoulder and smiles in a warm and reassuring manner. “Look, he says. We can make sure those vandals never come near your place. All you need to do is to pay us $1000 a month.”

“But gee,” says the struggling entrepreneur, “for $1000 a month, I can repair an awful lot of damage.” And so his visitor leaves.

That night all the plate glass windows at the front of the restaurant are broken, as are all the bottles behind the bar. The owner’s son, a skinny but promising lad, is beaten almost senseless on his way home from school. The owner’s car has its tires slashed.

A day later the stranger shows up again. “I’ve heard about your troubles. I’m sorry you didn’t take my advice.”

“Large bills or small?” asks our hero.

“Small will do fine. Just think of the peace of mind they will buy you.”

In this story, the restaurant owner sometimes figures out that the vandals and the guy selling protection are in league. Sometimes he doesn’t.

So why am I telling you this story? I am telling it because it applies to most Americans. As we age we need medications. The pharmaceutical industry has remedies that can cure us of our ills and even some that can prevent us from dying. But the medications cost a ton. We cannot afford them.

But help is in sight. Insurance companies rush to our aid and for only a little more than the medications would cost us--but spread over time--they offer to protect us from the nasty pharmaceutical companies.

“But for what you are charging,” we say, “we could buy the medicines.”

“Ah, yes,” say the insurance companies. “But think of the peace of mind these premiums will provide.”

Well, I am sure you will tell me that my parallel is imperfect. After all, the insurance companies are not in league with the pharmaceutical companies the way the guy selling protection is in league with the vandals. If you take a longer view of the situation, however, they are connected. They are linked and in league because of something I call THE UICG. That’s THE UNMASTERED IMPORTUNITY OF CORPORATE GREED.