According to President Barack Obama, people should support his health care reform legislation (in part) because private insurers routinely choose profitability over care, often denying claims or dropping coverage when someone gets sick.

His argument sounds persuasive, but is it true? No.

From The Independent Institute....

According to the American Medical Association’s National Health Insurer Report Card for 2008, the government’s health plan, Medicare, denied medical claims at nearly double the average for private insurers: Medicare denied 6.85% of claims. The highest private insurance denier was Aetna @ 6.8%, followed by Anthem Blue Cross @ 3.44, with an average denial rate of medical claims by private insurers of 3.88%

In its 2009 National Health Insurer Report Card, the AMA reports that Medicare denied only 4% of claims—a big improvement, but outpaced better still by the private insurers. The prior year’s high private denier, Aetna, reduced denials to 1.81%—an astounding 75% improvement—with similar declines by all other private insurers, to average only 2.79%.

Maybe there’s something to be said for the need to keep your customers satisfied in order to make that profit after all.

Fear and loathing of private industry and the profit motive is irrational and misguided. The same people who rail against "evil corporations" and "fat cat CEOs" somehow don't feel the same emotions toward government. Only government can limit your choices and take away your freedoms. Corporations and "fat cat CEOs" can't do that. Only government can confiscate your money by force and give it to someone else. Corporations and "fat cat CEOs" can't do that.

Wake up America.