CrusaderFrank
Diamond Member
- May 20, 2009
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Maybe if they were allowed to buy insurance across state lines....
Increasing the number of insurance companies will not change their general behavior towards making profits.
Basic 1 2 of insurance companies is follows
1) Insure healthy people--that is how you gain money
2)Abandon sick people. That is how you keep money.
No level or amount of competion a right winger can think up will change that.
That is why the suggestion of a Health savings account are endorsed by many conservatives and Libertarians. Yes there is a right wing-personal responsibility choice that is out there.
Buying insurance from, say, Wyoming or Utah, will not change that. That is a corporatists BS-propaganda line to keep the "maximum profit market system" going for them.
Since you didn't read it the first time:
The free markets competes away extraordinary returns. With few exceptions, largely for SuperCat, where there are only a very small handful of companies able to underwrite and shoulder the risk, if an insurance company is writing policies at a 10% return a competitor will come in and offer the same policy at an 8% return. See, the insurance business is more about investing the float than it is about writing policies with large returns