Mr. Write's Page

Friends, I am a skeptical guy and proud of it. It pays to be skeptical.

I also have a healthy BS detector. BS detection is an essential ability.

Together, my skepticism and BS detector help me avoid being relieved of money by those looking to profit at my expense, whether illegally or by selling me something I don’t need.

The key in this respect is simple: just remember that no business or institution will offer a product or service unless they will derive an acceptable profit from the transaction. Period.

My mortgage company, for example, constantly reminds me that refinancing my mortgage, or taking out a second mortgage, will solve all my problems and improve my life immeasurably. It will be quick and easy. Give us a call.

Translation: borrow more money from us so we can collect more interest.

Another example is a relatively new entry in the insurance business: car repair insurance, aka mechanical breakdown insurance. It applies to repairs that are not accident-related and thus are not covered by your regular auto insurance. You’re probably familiar with ads for CarShield and others.

The fact is, most people never use the coverage — which is quite limited, not to mention saddled with deductibles. Ergo, repair insurance is a guaranteed money-maker for the providers.

And finally, my favorite: a truly artful scam, Medicare Part C.

Medicare Parts A and B provide basic, legitimate coverage from Uncle Sam. Part C consists of “Medicare Advantage” plans from private insurance companies. The idea was invented back in the 1990s by the Republicans under the second George Bush as a way for private industry to get on the Medicare bandwagon and make money.

In coverage as well as cost, Part C plans vary with the provider. The complexity is intentional. It creates a smokescreen that makes the cost and coverage unclear. Clarity does not serve the interests of the insurance provider.

Think about the barrage of advertising and mass mailings unleashed each year during the Part C enrollment period. The insurance industry would never, ever work so feverishly to sell Part C unless it yielded significant profits.

In reality, very few individuals benefit from buying Part C coverage. Experts say it may — may — benefit people who struggle to pay for real Medicare coverage under Parts A and B. Beyond that, Part C is a cash cow for the insurance companies.

I could go on, but you get the idea.

My advice: remember the key to skepticism and BS detection: no individual or entity will offer a product or service unless they will derive an acceptable profit from the transaction.

Period.