Tag Archives: Insurance

Elon’s “Compelling” New Offer, by Eric Peters

But Wait, There’s More! from master conman and grifter Elon Musk. From Eric Peters at ericpetersautos.com:

Elon Musk has just announced he’s going into the insurance business with Liberty Mutual – a partnership as natural as the getting-together over coffee of the Gambinos and Columbos.

They’re really going into the data-mining and mobility control business; the insurance business is merely the storefront.

The plan, according to Elon, is to offer “compelling” premiums . . . by compelling policyholders to let him (and the sickly-named Liberty) monitor their driving via real-time telemetry – just like the Apollo program.

And surrender it, too – by turning that over to his infamous auto-pilot system.

Which for the record hasn’t exactly got a great record.

Several auto-piloted Teslas have already piloted themselves into fixed barriers and other vehicles as effectively as any reckless human driver.

There have been losses – including of human lives.

At least two lawsuits are currently in process – including one filed by the family of Walter Huang of California, who was killed when his Tesla wandered out its travel lane and then accelerated into a lane divider – without Huang having touched the accelerator pedal or the steering wheel.

Will Elon surcharge himself for this risk?

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Unlike Real Insurance, Social Security “Insurance” Creates Greater Risk for the Future, by Gary Galles

Social Security is not insurance. From Gary Galles at mises.org:

Every time the Social Security trustees issue their annual report, some people notice that the system’s huge unfunded liabilities (currently, a $42.1 trillion cumulative shortfall) are inherently unfair to future Americans. That threatens its status as the “third rail” of politics, which electrocutes anyone who tries to touch it.

So Social Security’s army of defenders go on the attack. And one of their greatest weapons is that the program has been promoted as insurance program ever since it started and taking away insurance sounds like a bad idea.

In a sense, Social Security does act as a form of mandatory old age insurance for participants. However, rather than paying off with earnings from investments, as with private insurance, its taxes provide only promised future government benefits (though the Supreme Court long ago ruled in favor of the government’s claim that it did not need to provide the benefits promised).

However, for Social Security to really be insurance, a group’s “premiums” would have to finance the benefits they receive. But that has not even remotely been true of Social Security. Older generations got far more in benefits than they paid. They may believe they deserve a massively subsidized deal (especially when it is falsely presented as if early recipients actually paid all the costs of their benefits), but that deal is dramatically unfair to younger generations forced to pick up the multi-trillion dollar bill to make good on program promises.

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Americans Had To Borrow 88 BILLION Dollars To Cover Their Medical Bills Last Year, by Michael Snyder

If you want Exhibit A in how badly government can screw up an industry, look no farther than medicine and medical insurance. From Michael Snyder at theeconomiccollapseblog.com:

I know that the headline sounds outrageous, but it is actually true.  According to a brand new report that was just released, Americans had to borrow 88 billion dollars to cover their medical bills last year.  That is a truly astounding number, and it shows just how dramatically our current health care system has failed.  And even though the vast majority of Americans are covered by “health insurance”, millions of us are deathly afraid to go to the hospital because of what it might cost.  Today, two-thirds of all personal bankruptcies in the United States are caused by medical bills, and most of the people going bankrupt actually had health insurance.  Overall, more than half a million American families are financially ruined by medical bills each year, and meanwhile our “representatives” in Washington are doing absolutely nothing to fix the problem.

Surveys have shown that up to two-thirds of the country is living paycheck to paycheck at least part of the time, and an unexpected medical bill can be absolutely devastating for those that are just barely scraping by.

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“Shared Responsibility” Update, by Eric Peters

Eric Peters makes a stand—which will cost him actual money—against Obamacare. From Peters at theburningplatform.com:

I am now officially an Obamacare Outlaw – the deadline for sending in my “shared responsibility” penalty/tax whatever-it-is having come – and gone. Without my having sent them a burnished penny of the $695 they claim I “owe.”

Readers will recall that about three weeks ago, I received a thuggy letter from the Luca Brasi division of the government, which has become the collection agency for the health insurance mafia. The mafia succeeding in getting Obamacare passed into law – and don’t be deceived that it was Obama or the Democrats or even the Republicans who did it, though they played their necessary puppet parts. The power behind them is the insurance mafia, which saw the goldmine and determined to mine it – using the power of the government to dig out the gold at gunpoint.

Of course, the government wets its beak, too.

It gets power – over everything it hasn’t already got power over since literally everything imaginable can be claimed to “affect” health care and now that our health is no longer our business but the business of the government, everything we do (and don’t do) at least in principle now falls under the purview of the government.

Obamacare will be used to implement – just for starters – backdoor/extra-legal gun control via “health based” rulings on who may – and may not – own a gun.

For example, the recalcitrant patient – or the refusnik patient, such a myself. Declining to obtain health insurance will be punished in more than just one way. Those who do not “sign up” will likely be characterized as mentally troubled – and “we” (it is always “we” when in fact it is really they) can’t have the mentally troubled running around (or even staying home) with loaded guns on their person.

That kind of thing. Expect it, count on it.

And, don’t be tricked by the black face that has been put on Obamacare – a divide and conquer trick deliberately used to divert attention from the bipartisan decimation of our liberty to not be mugged by the insurance mafia via the joint efforts of Republicans and Democrats in the service of themselves and the mafia.

To continue reading: “Shared Responsibility” Update

Insurance at Gunpoint is Sick and Evil, by Eric Peters

Insurance has become an offer you can’t refuse. From Eric Peters on a guest post at theburningplatform.com:

There is nothing wrong with insurance … provided you can say no to it. Then it’s like any other thing you choose to buy.

Whether it makes sense to buy it – a subjective value judgment, by the way – isn’t the point. Exercise makes sense, too.

The point is – or should be – if insurance is something you want, or feel the need of – then you have the right to choose to buy it.

What you haven’t got is the right to force others to buy it – and thereby take away their free choice.

Insurance at gunpoint is dark and vicious. Anything that involves pointing guns at other people (who haven’t pointed a gun at you first) is necessarily a dark and evil thing. Someone – it doesn’t matter which specific individual does the wet work – is threatening to harm you unless you hand over money for something you do not wish to buy.

In ordinary language that’s a mugging.

Insurance at gunpoint is also an economic disaster. Not for the insurance company – which is really a mafia, because it uses force to coerce people to buy its services. It makes people an offer they can’t refuse. The insurance mafia makes a fortune. But the people who are forced to buy “coverage” get screwed.

Does this even need elaboration?

What happens to the price of anything when “customers” can’t elect not to buy that thing? Sure, there are different insurance “families.” You can “shop” the Gambinos (GEICO) or go with the Genovese (Allstate).

But you can’t say no.

To continue reading: Insurance at Gunpoint is Sick and Evil


Sales of Short-Term Health Plans Soar as Americans Flee Expensive Obamacare, by Michael Krieger

Obamacare is turning into such a huge disaster that it has almost guaranteed itself massive annual budget increases and an expansion of its mission in perpetuity or until it takes over the entire US health care system, whichever comes first. Remember, in government nothing succeeds like failure. From Michael Krieger at libertyblitzkriegcom:

When it comes to Obamacare, the devil is in the details.

As the years go by, Americans are quickly recognizing that not only is Obamacare not helping them out, it’s actually crushing their paychecks to such an degree they’re finding it necessary to pursue alternatives. This has resulted in a mad dash into non-ACA compliant short-term health insurance plans, or the kind of plans Obamacare was specifically designed to replace.

Before we get into that, it’s important to understand just how unaffordable and useless Obamacare actually is for millions of Americans. First, let’s revisit a few excerpts from last month’s post, The Health Insurance Scam – “Coverage” Doesn’t Mean Affordability or Access:

The Affordable Care Act hasn’t just caused premiums to skyrocket across the country, out-of-pocket costs are also on the rise.

According to Freedom Partners, an Arlington, Va.-based pro free-market non-profit, 41 states are facing higher deductibles in 2016 – 17 of which saw a double-digit hike.

“Higher Obamacare deductibles increase, by hundreds of dollars, what families must pay out of pocket to access their health insurance,”Freedom Partners Senior Policy Adviser Nathan Nascimento said in a statement. “Instead of reducing costs, Obamacare regulations and mandates continue to drive up these costs and make quality care less accessible for hardworking families.”

For some additional insight, let’s turn to a New York Times article published last year titled, Many Say High Deductibles Make Their Health Law Insurance All but Useless:

WASHINGTON — Obama administration officials, urging people to sign up for health insurance under the Affordable Care Act, have trumpeted the low premiums available on the law’s new marketplaces.

But for many consumers, the sticker shock is coming not on the front end, when they purchase the plans, but on the back end when they get sick: sky-high deductibles that are leaving some newly insured feeling nearly as vulnerable as they were before they had coverage.

“The deductible, $3,000 a year, makes it impossible to actually go to the doctor,” said David R. Reines, 60, of Jefferson Township, N.J., a former hardware salesman with chronic knee pain. “We have insurance, but can’t afford to use it.”

Brilliant, just brilliant. So what are consumers faced with either an unaffordable and unusable Obamacare plan, or no insurance at all doing? They’re shopping for non-ACA compliant short-term plans.

The Wall Street Journal reports:

A type of limited health coverage with features largely banned by the Affordable Care Act is flourishing, as some consumers grab onto an alternative they say is cheaper than conventional plans sold under the law.

Sales of short-term health insurance are up sharply since the health law’s major provisions took effect in 2014, according to insurance agencies. New sales figures show the temporary policies, traditionally sold to consumers who are trying to fill coverage gaps for a few months, have continued their surge recently—even though people who buy them face mounting financial penalties because the coverage doesn’t meet the ACA’s standards.

To continue reading: Sales of Short-Term Health Plans Soar as Americans Flee Expensive Obamacare

The Second Income Tax, by Eric Peters

From Eric Peters on a guest post at theburningplatform.com:

One of the reasons people haven’t got much money anymore is probably due to the fact that the insurance mafia takes more and more of it all the time.

Using the government as its muscle.

First car, now “health.”

Soon, no doubt, mandatory life insurance will be required as well.

Insurance has become a de facto second income tax. Except instead of paying the government mafia, we’re forced by the government to pay the insurance mafia.

In economics, this is called rent seeking.

So-called “private” (and inevitably, for-profit) businesses make money the new-fashioned way, by seeing to it that laws are passed requiring the populace to purchase its products or services. So much easier (and so much more profitable) than the old-fashioned way of having to persuade people to freely purchase what you have to offer.

Imagine the Hamburger Lobby ( a consortium of McDonalds, Wendys and Burger King) got Congress to pass a law requiring the purchase of at least one hamburger a week from the “provider” of your choice. Would you expect the price of a hamburger to go up – or down? Probably the only reason there isn’t a mandate to buy hamburgers (yet) is because the Hamburger Lobby hasn’t figured out a way to frame such extortion in terms of a “public good.”

Give them time.

Meanwhile, insurance costs continue to skyrocket – precisely because we’re not permitted to say no.

How much is the average person paying out to be “covered”? (Which, by the way, is not the same thing as actually getting anything, in the event you file a claim.)

At-gunpoint car insurance costs in the neighborhood of $1,300-$1,500 a year for most people (see here) or about $120 a month.

How about health insurance? It’s currently about $250-$350 month for a very basic (and basically worthless) Obamacare policy for a single (healthy) young adult (see here). This works out to about $3,000-$4,200 annually. You will be (forced) to pay much more if you are older – or have a family. Just as you will be forced to pay more for car “coverage” if the mafia’s enforcers select you for a roadside “tune-up” (i.e., give you a ticket for the manufactured, victim-free offense of driving faster than they like), the fact that you’ve never filed a claim – or had one filed against you – being immaterial.

But, let’s call it $600 a month – a very conservative figure – to be “covered” for car and health insurance.obamacare pic

Grab your pay stub. Have a look at federal and state tax withholding. Odds are you are paying less to the federal and state mafia (er, government) than you are to the insurance mafia.

To continue reading: The Second Income Tax