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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?


To: John Koligman who wrote (3815)1/11/2008 11:40:30 PM
From: Peter Dierks  Read Replies (1) | Respond to of 42652
 
I re-read it several times and cannot get that out of it.

It does point out that the Balkinization of health insurance has two main effects:

1) A limited number of companies willing to compete in a state's market for consumers to pay more for insurance than they would in a more competitive national market.

2) By limiting the number of insurers when people are denied coverage their limited number of options leaves them with only expensive alternatives such as the state's high risk pool.*

I have observed that businesses tend to cater to any large enough market. For instance how large is the pool of diabetics in Wyoming? Would an insurance company generally choose to specialize in a diabetic market in just a small state? Obviously if it were a national market there would be companies that specialize in the market profitably.

*I have known people whose only option for coverage was the state's high risk pool. It is the most expensive coverage available. Most of us don't want to see the number of people subjected to that.



To: John Koligman who wrote (3815)1/12/2008 9:08:56 AM
From: Lane3  Respond to of 42652
 
The way I read this is that if the insurance companies can't cherry pick, the price goes way up.

My read, FWIW, is that if the insurance companies can't differentiate risk pools or levels of service, the universal price goes way up.