Friday, August 14, 2009
While some Americans express deep misgivings about the creation of government-run health insurance, Sheldon Filger points to a little known example in Canada of how public involvement in the insurance industry can have a positive impact. Filger’s example does not focus on Canada’s oft-discussed universal health insurance operation, but rather a public auto insurance program that was created in the province of Manitoba to reverse an out-of-control situation.
Manitoba once had the worst auto theft rate in Canada, which caused insurance premiums to skyrocket and adversely affect the pocketbooks of residents. The provincial government decided on a radical solution: abolish all private auto insurance and replace it with Manitoba Public Insurance, which was entirely owned by the regional government.
The public insurance company worked with law enforcement and the criminal justice system to stem the spread of car thefts. For example, it installed immobilizers on high risk automobiles, which reduced the number of stolen cars and lowered premiums, according to Filger.
The Manitoba Public Insurance idea became “a triumph of reason over ideology,” writes Filger. “Looking towards the United States, such a creative alliance of government and small business would never be considered as an alternative to the expensive corporate insurance model that currently exists. It is a tragedy for the American people that ideology and propaganda will squash any consideration of a well-executed public insurance option, no matter how compelling the case may be.”
-Noel Brinkerhoff
Government Health Insurance? What About Public Auto Insurance (by Sheldon Filger, Global Economic Crisis)
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