Government insurance for banks but not humans

As I was listening to the NPR this morning, they mentioned that the FDIC (Federal Deposit Insurance Corporation) was basically broke from having to clean up after so many bank failures around the country. The FDIC is a government run insurance company that banks pay fees to each year to insure their customers accounts for up to $250,000 a pop. So say you have $251,000 in the bank and your bank goes bust. The FDIC will make sure you get $250,000 of that back, so you’re only out $1,000.

The system seems to work well for everyone involved. Bank customers like you and me get peace of mind that our deposits are safe, and banks get to tout that they are FDIC members and therefor trustworthy handlers of your $$$. Other than the recent recession (caused by shady investment banking) the FDIC has never been in any financial trouble, and even though they are now, the banks still support them 100% and plan to prepay premiums to keep the FDIC solvent.

Basically it’s a government insurance program that works and everybody trusts. So if government insurance can work, why can’t we provide the same sort of thing for people’s health? Just like in the aftermath of Black Thursday, millions of Americans are being financially ruined through no fault of their own. In 1929 it was happening because of the stock market collapse. In 2009 it’s happening because we either can’t get health insurance because of crap like preexisting conditions, or we have health insurance but it’s so watered down that it can’t save us from from bankruptcy.

One Comment

  1. Ian

    Meh, if you die you can pass money on. Buying and selling health? That dog won’t hunt, monsignor.