[FoRK] Adverse selection in insurance

Benjamin Black b at b3k.us
Sun Oct 18 23:02:54 PDT 2009

J. Andrew Rogers wrote:
> Again, all this is a regulatory result.  This is a natural consequence
> of the mountain of stupid laws and regulations regarding such things
> that essentially force or encourage insurance companies to offer the
> products they currently offer. All of which is compounded by equally
> broken tax laws regarding such things.
> Most (all?) states have myriad expensive, stupid things written into
> their insurance laws that are nothing more than rent-seeking by a
> diverse range of special interests.  And people that buy insurance get
> to pay for it whether they want to or not.

Yes, pity, the poor, put upon insurance companies who can't afford to
spend millions on lobbying legislatures to get exactly the regulations
they want passed, often having written them for the legislators.
Instead, the people of the states have risen up to smite them with their
awesome democratic power.  Give it a rest.  The notion that insurance
companies, working hand in glove with the health care providers and big
pharma, are victims rather than perpetrators is ludicrous.

The companies in these industries do not want reform because the system
we have works extremely well for them.  Those rent-seeking special
interests?  They're the health care industry.


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