Thursday, May 10, 2012

Health Insurance Competition Really Cuts Costs

 Populist politicians love to tell how private insurance companies, or any private business, should be able to compete with any entity that is government-run, especially with regard to health insurance.

But we know that government entities are not operated at low cost. The Post Office is one example. Medicaid and Medicare are government insurance coverage run amok.

What pro-government insurance fans never tell you, is that government has no capital costs. The taxpayer subsidizes capital as well as operational outlays.

All private health insurance companies must provide expensive capital and funds and yet have only a few percentage points of profit to show for it.

Never fall for the argument that having a government agency option to choose from in health insurance will help the consumer. (See the Earl J Weinreb NewsHole® comments.)


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