Can you believe it? Another Insurance Horror!

[Welcome Industry Radar readers!]

According to Congressman Joe Sestak, Democrat of Pennsylvania (Sestak is challenging Senator Spectre for his Senate seat in the 2010 election): “ . . . only 2 percent of claims have been paid and that four of every five applications have been rejected for minor oversight.” Horrible, horrible!

But this horror is NOT another complaint about private-sector medical insurance companies. It’s about the federal cash-for-clunkers program.

Speaking of federal programs – won’t the federales also manage American medical insurance reimbursements, after Congress votes later this year to take control of them? How smoothly can we expect that to go?

Much popular opinion seems to be that after the federal takeover, medical insurers will be prohibited from ever again refusing coverage to anyone. Also, medical insurers will be prohibited from ever again denying a claim. Yet the cash for clunkers programme denies 80% of applications and 98% of claims. Problem is, neither popular opinion nor the cash-for-clunkers outcome has any truthiness to it.

So who can we believe and what can we expect?

If there were an Obi-Wan Kenobi, he would be our only hope - if there were any hope.