LTC Bullet: New CLTCF Speech: "Insurance: Private vs. Social"

Wednesday, July 24, 2002


*** The Center for Long-Term Care Financing's Executive Director, the very able and charming Amy Marohn, will become Amy McDougall on Saturday, July 27, 2002. Amy will be honeymooning through the first full week in August, after which she'll respond to emails and voice mail. In the meantime, feel free to contact Center President Steve Moses at 206-283-7036 or for any pressing matters. Amy Marohn McDougall's email address ( and phone number (425-377-9500) will not change. Feel free to extend your good wishes to her. Congratulations Amy! ***

*** No more free LTC Bullets!? Perish the thought. We want LTC Bullets to remain free of charge to anyone who wants to receive them. They WILL stay free IF the Center for Long-Term Care Financing's annual fund raising campaign, beginning next month, is fully successful. You can help us to KEEP THE BULLETS FREE by encouraging your company to support the Center. Tell management you get value from the Center and that you need the Bullets, the Center's website, and our advocacy of rational LTC policy to continue. If your company supports the Center at our minimum corporate level, you'll not only be guaranteed free LTC Bullets even if we have to start charging others for them, but you'll also get free access to our donor-only zone under your company's user name and password. If you mention the Bullets and the Center for Long-Term Care Financing, but the boss says "Who's That?," get a new boss . . . just kidding. Send him or her to Executive Director Amy Marohn ( She'll brief them on the Center, sign them up for LTC Bullets, get them on the list to receive our formal fund raising package, and schedule a conference call with Center President Steve Moses ( Thanks for your help. ***

*** New donor-only zone content just posted includes the following (hyperlinks are for the convenience of Zone-qualified donors who already have user names and passwords; if you've set your browser to remember your user name and password, you should jump directly to the desired item):

The LTC Reader #27--Senate Aging Hearings Report (

The Data Base #27--CBO Policy Brief with Dire $ Predictions re Aging (

LTC Week in Review: July 22 - 26, 2002: LTC E-Alerts #181-#185 (

     LTC E-Alert #181--Two Important NYT Articles on Hypertension

     LTC E-Alert #182--WSJ on Cutting Alzheimer's Risk

     LTC E-Alert #183--Seniors Well Off but Future Bodes Ill

     LTC E-Alert #184--GAO on Dollars vs. Quality in Nursing Homes

     LTC E-Alert #185--East Spends More than West on Health Care and LTC

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We often receive requests from LTC professionals for speech ideas and outlines. The Center for Long-Term Care Financing occasionally publishes transcripts of speeches delivered by Center staff. You can find a selection of these speeches, a total of seven including the latest, by scrolling down to "Read a Collection of the Center's Speeches" on our home page ( or go directly to: We hope these transcripts are helpful to our readers who have the opportunity to talk on long-term care or insurance before a live audience. When you do, please tell your audiences about the Center for Long-Term Care Financing, send them to, and encourage them to subscribe to LTC Bullets.

The new speech we've just posted is titled "Insurance: Private vs. Social." Center President Stephen Moses delivered this talk on July 5, 2002 at The Objectivist Center's (TOC's) 2002 Summer Seminar in Los Angeles, California. (For information on TOC, go to The transcript of this speech has been modified slightly to remove content unique to that audience. What follows is an abstract and outline for the speech. The full text is at: Please direct comments or questions directly to

Abstract of "Insurance: Private vs. Social":

Life is full of uncertainties. Usually, that's a good thing. Who doesn't like a pleasant surprise? But some uncertain events are very bad indeed. Heart attacks, auto accidents, and house fires come to mind. Although unpredictable individually, life's terrible shocks are thankfully rare and highly predictable collectively. We cannot eliminate risk, but we can mitigate its impact on our lives. Insurance prices, transfers, and softens risk so we can relax and enjoy life. It replaces the small risk of a catastrophic financial loss with the certainty of an affordable payment or premium. Unfortunately, however, the many benefits of insurance are highly susceptible to corruption and destruction by public officials with altruistic, but counterproductive motives. This talk will explain how private insurance empowers individuals to protect themselves and how you can recognize and resist the damaging trends of community rating, welfarization and "social insurance."



     Key principles and terms

     Mitigating life's uncertainties

     Early warning system on risky behavior


     Does insurance blame the victim?

     "Improving" on the market

     From each according to his ability to each according to his need


     Prior approval and restrictions on risk classification

     Insurance as welfare

     Welfare as insurance


     Private insurance is objective, voluntary, individualist

     Social insurance is subjective, compulsory, and collectivist

     How insurance contributes to a happy, productive life