Populist politicians insist that private insurance companies, or any private business, should be able to compete with an 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, will help the consumer. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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