Albert,
re: "Dan is right and the traditional actuarial term for that is "anti-selection". You may put as many "pre-existing" conditions as you want but you will still end-up with a claim table for individual insurance that is higher than average table."
Then why not make all insurance a public pool. I'm sure the same is true of fires, floods, earthquakes, hurricanes, car accidents, on and on.
Following the same logic, let's all buy the same computer. It will be much cheaper if we can all decide on the same model, and just mass produce that one model. Same thing with cars. And homes. "Anti-selection" in all things.
In fact, let's eliminate the entire free market system. I can prove to you, one thousand times over, that if we eliminate competition in any given product category, and just produce one product, we can produce it cheaper because of the quantity. "Anti-selection" will work in all product tables.
The slight problem with that line of thought is that there is never any progress, because there is no competition. The Soviet Union was never famous for their product innovations or quality, but they could produce multiples of the same product very cheap.
Health care insurance has been socialized, and because the end user has no investment, he has no say in the quality. The net result is that the quality will continue to go down, because there is no market force to discipline the providers.
John
EDIT - Sorry, posted before you guys gave up the topic. |
