[lbo-talk] HC profits to Insurance companies

[Wojtek S]

[WS:] Nice idea, but it is unlikely to work.  The problem is not that inscos
are greedy bastards (although many of them certainly are) but that with
private insurance the spread of the risk is by definition limited.  Since
its is virtually inevitable that everyone will need medical care at some
point in his/her life time, the smaller the pool of the insured the greater
the per capita premium to cover the cost of that care.  So to keep premiums
"competitive" the choice, on the pain of going out of business, is either to
lower coverage or dump high cost members, regardless of the good intentions
of the insurance provides (union owned or otherwise.)  That is the
fundamental working of the market.

Wojtek

On Mon, Mar 22, 2010 at 10:20 AM, parthasarathy kalalesrinivasaranga <
kalalepsarathy at gmail.com> wrote:


> Without their effort, there is going to be an explosive increase in
> Insurance business. Will that make them go for moderate premiums?  Why
> workers dont take initiative to float their own cooperative insurance ?  If
> the trade unions were to cover all their members with their own plans, that
> will force the existing Insurance companies to behave.  A public option is
> one which the public should take initiative to start and operate and not
> demand this Goverment to do it for them.  They too should have organised a
> market place for selling competitive policies, for which initiative some
> companies at least would offer support.
> --
> paartha
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