A frequent argument for nationalized healthcare is the comparison to auto insurance. Obamacare advocates reason that since government requires people to purchase auto insurance government can also require people to purchase health insurance. The flaws in that argument are numerous.
Compulsory auto insurance coverage is a state issue. Each state establishes minimum bodily injury and property damage liability coverage requirements as it deems appropriate. However, liability insurance provides no benefits to the policyholder beyond the transfer of risk. The auto insurance requirement serves to protect the public from catastrophic losses the insured may cause.
While auto liability is compulsory, drivers aren't required to purchase coverage that protects personal interests. The state isn't concerned with how someone replaces their vehicle or pays personal medical expenses that result from their actions.
Mercury officials strongly denied the new allegations. In a statement Monday, the company said it "takes very seriously our responsibilities to consumers and our customers" and added: "We don't engage in practices that would overcharge our customers."
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The company and its chairman, George Joseph, have donated more than $7.2 million to state political campaigns in the past decade. In 2009, Mercury donated $13,000 to the gubernatorial campaign of Attorney General Jerry Brown but has not donated to Poizner's campaign for governor.
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Tuesday, 13 April 2010
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