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Politics : View from the Center and Left

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To: Cogito who wrote (129361)	1/27/2010 6:29:28 AM
From: Lane3	Read Replies (1) of 541763

What would motivate them to seek the lowest level for basic coverage, where they make almost no money? Why would they bother to enter new markets in order to do that? The first wave of customers would be the uninsured. That's entirely new business. Even if it's relatively lower profit, they have no chance of selling frilly products to this cohort so they aren't losing anything by selling them lower margin products. Plus there would be a lot of volume and standardized policies so overhead would be lower. You'd also likely have newer players entering the market, hungrier players who work on the cheap, just like we had new players in the telecom market when it opened up. Maybe it wouldn't happen. Dunno. I'm mostly trying to convey that it isn't some evil notion from the party of "no" to be dismissed out of hand based on the source. There is a legitimate basis for this an many other sincere alternatives being offered.

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