Why are Dems against interstate competition?

[Ame®icano]

From the book Freakonomics - Steven Levitt & Stephen Dubner

In late 1990s, the price of term life insurance fell dramatically. This posed something of a mystery, for the decline had no obvious cause. Other type of insurance, including health and automobile and homeowners' coverage, were certainly not falling in price. Nor had there been any radical changes among insurance companies, insurance brokers, or the people who buy term life insurance. So what happened?

The internet happened. In the spring of 1996, quotesmith.com became the first of several websites that enabled a customer to compare, within seconds, the price of term life insurance sold by dozens of different companies. For such websites, term life insurance was a perfect product. Unlike other forms of insurance - including whole life insurance, which is far more complicated financial instrument - term life policies are fairly homogeneous: one thirty-year guaranteed policy for $1 million is essentially identical to the next. So what really matter is the price. Shopping around for the cheapest policy, a process that had been convoluted and time consuming, was suddenly made simple. With customers able to instantaneously find the cheapest policy, the more expensive companies had no choice but to lower their prices. Suddenly, customers were paying $1 billion less a year for life term insurance.

If we all know that competition is driving prices down, then why not to allow insurance companies to sell across state lines? Is it worth trying?

 

[driveby]

Because they're liars ? ...

 

[veritas]

uh because........they'll all go to one or two of the least regulated states and operate out of them. And then what we will have is more like a credit card corporate haven situation.

And life insurance is an investment vehicle as much as it is insurance, or maybe more so. Car insurance and homeowners is highly regulated.

 

[The T]

From the book Freakonomics - Steven Levitt & Stephen Dubner

In late 1990s, the price of term life insurance fell dramatically. This posed something of a mystery, for the decline had no obvious cause. Other type of insurance, including health and automobile and homeowners' coverage, were certainly not falling in price. Nor had there been any radical changes among insurance companies, insurance brokers, or the people who buy term life insurance. So what happened?

The internet happened. In the spring of 1996, quotesmith.com became the first of several websites that enabled a customer to compare, within seconds, the price of term life insurance sold by dozens of different companies. For such websites, term life insurance was a perfect product. Unlike other forms of insurance - including whole life insurance, which is far more complicated financial instrument - term life policies are fairly homogeneous: one thirty-year guaranteed policy for $1 million is essentially identical to the next. So what really matter is the price. Shopping around for the cheapest policy, a process that had been convoluted and time consuming, was suddenly made simple. With customers able to instantaneously find the cheapest policy, the more expensive companies had no choice but to lower their prices. Suddenly, customers were paying $1 billion less a year for life term insurance.

If we all know that competition is driving prices down, then why not to allow insurance companies to sell across state lines? Is it worth trying?

Of course what they speak of is the MARKETPLACE. People drive the market...and their acceptance/rejection of it by thier participation.

Now is this so damned HARD for our Statist bretheren to accept?

Commerce is something that they choose to strangle by Government manipulation/regulation/control.

And their way is better? Stifle Liberty by limits? In my view Liberty knows no limits until you step on toes of those practicing it.

Great thread. I hope that our statist brothers learn from this example. I rather doubt it though. They think Government allow Liberty to happen, rather than PROTECT it.

 

[The T]

"You must spread some Reputaion around...." Ad Nauseum...

Good thread Americano.

 

[Political Junky]

Why are wingnuts afraid of competition for their precious insurance companies?

 

[JakeStarkey]

vertias plucked all The T's feathers before the T even posted. That's funny!

 

[The T]

Why are wingnuts afraid of competition for their precious insurance companies?

FIRST, because Government is NOT mandated by the Constitution to FRONT "Competition" against the private sector.

That would supplant the premise that Government is suppoosed to DEFEND Liberty, rather than COMPETE against it for Government PROFIT.

Government is NOT supposed to PROFIT [in this case their POWER over the PEOPLE].

I take it YOU aren't a STUDENT of the Constitution, are you?

Ever read it? The Declaration Of Independence?

Hollow words?

Or was the Government supposed to COMPETE for Constituient dollars? Via TAXATION?

My friend? WHY did you even ASK such a question??

 

[The T]

vertias plucked all The T's feathers before the T even posted. That's funny!

Did no such thing. But don't let that get in the way of your hollow/vapid "Hero-WORSHIP"

 

[The T]

uh because........they'll all go to one or two of the least regulated states and operate out of them. And then what we will have is more like a credit card corporate haven situation.

And life insurance is an investment vehicle as much as it is insurance, or maybe more so. Car insurance and homeowners is highly regulated.

WHY is it regulated? Your example rings hollow of HEATLTHCARE Insurance. Healthcare Insurance is an individual Obligation, and NOT a right as it is being spewed by Government.

Neither Healthcare Insurance/Car Insurance, or any other type are compatible by definition.

Unless you deem something that should be an individul obligation[Healthcare] be a mandate.

The Constitution would be against you.

 

[driveby]

Fair competition say the liberal geniuses? How many insurance companies make you pay a penalty ( tax ) for not buyng insurance from them ? .....

 

[The T]

Fair competition say the liberal geniuses? How many insurance companies make you pay a penalty ( tax ) for not buyng insurance from them ? .....

Exactly.

Max Baucus (Dumbass), Montana thinks that American Citizens should be Taxed a FEE if they don't sign onto any plan...Government, or otherwise.

Folks? This is Government Manipulation, and an Affront to YOUR Liberty. It's the Government telling YOU that it's their WAY or PRISON if you don't COMPLY.

Does this speak to the Declaration Of Independence? The Constitution?

Or does it speak to what the FOUNDERS fought and WON for US? Liberty to tell these Elitist FUCKS to go Screw themselves?

 

[The T]

*I* Am seriously thinking of Running for Office. It's about time to take off the gloves, and tell these Elitists to FUCK OFF. [And they may QUOTE ME].

Have at me Media. I will have more milage out of that statement to the positive than you all could ever imagine.

Chris Mathews and HARDBALL are misnamed. Chris wouldn't KNOW what HARDBALL really is until he met ME.

 

[rdean]

If they really wanted competition, they would support a public option.

What a bunch of chickenshi....

 

[veritas]

T: you would never get off the ground. Somebody would find all of your posts here and use them against you........lmao.

 

[xotoxi]

603

 

[Ame®icano]

If they really wanted competition, they would support a public option.

What a bunch of chickenshi....

What kind of competition is when governemnt is trying to kill private option (Medicare Advantage) in favor of public (government) option?

 

[oreo]

Fair competition say the liberal geniuses? How many insurance companies make you pay a penalty ( tax ) for not buyng insurance from them ? .....

Exactly.

Max Baucus (Dumbass), Montana thinks that American Citizens should be Taxed a FEE if they don't sign onto any plan...Government, or otherwise.

Folks? This is Government Manipulation, and an Affront to YOUR Liberty. It's the Government telling YOU that it's their WAY or PRISON if you don't COMPLY.

Does this speak to the Declaration Of Independence? The Constitution?

Or does it speak to what the FOUNDERS fought and WON for US? Liberty to tell these Elitist FUCKS to go Screw themselves?

Hey---I am a conservative--why shouldn't Americans who can afford medical insurance--not be fined?

Most of us are required to carry automobile liability insurance--in the event that we cause damage to others property & does injury to others.

What do you think someone with no medical insurance--does to ALL of us when they end up in our hospital emergency rooms? They do financial damage to all of us.

So I am all for making medical insurance mandatory--to those that can afford it--but just chose not to get it--because their car stereo is more important to them. And I'll bet there are millions in this country that think just like that.

 

[Ame®icano]

Fair competition say the liberal geniuses? How many insurance companies make you pay a penalty ( tax ) for not buyng insurance from them ? .....

Exactly.

Max Baucus (Dumbass), Montana thinks that American Citizens should be Taxed a FEE if they don't sign onto any plan...Government, or otherwise.

Folks? This is Government Manipulation, and an Affront to YOUR Liberty. It's the Government telling YOU that it's their WAY or PRISON if you don't COMPLY.

Does this speak to the Declaration Of Independence? The Constitution?

Or does it speak to what the FOUNDERS fought and WON for US? Liberty to tell these Elitist FUCKS to go Screw themselves?

Hey---I am a conservative--why shouldn't Americans who can afford medical insurance--not be fined?

Most of us are required to carry automobile liability insurance--in the event that we cause damage to others property & does injury to others.

What do you think someone with no medical insurance--does to ALL of us when they end up in our hospital emergency rooms? They do financial damage to all of us.

So I am all for making medical insurance mandatory--to those that can afford it--but just chose not to get it--because their car stereo is more important to them. And I'll bet there are millions in this country that think just like that.

Look, Oreo. I already wrote this on antoher thread:

If government gets involved into healthcare, what choice do we have, really? I am not talking about choice in between private and public option. It's about choice to have another government chain around our necks or not.

Someone who chose not to have insurance did not infringe on anyone else's rights, nor endanger anyone else. At the other side, someone who chose not to have insurance and use emergency room caused everyone else pay more since hospitals raised the prices to compensate.

To fix the problem, liberal solution to prevent people from subsidizing other people's health care is to require people to subsidize other people's health care. Genius solution, all they have to do is to sell it to us.

What happen to personal responsibility?

With more government in my life, I have less choices. I agree, we should not subsidize for those who can pay. So, whoever earn enough to pay for insurance, and doesnt have it, should pay his own ER bill, and not you or me. We can force him pay by court order, or by taking it from his payroll, make him understand that he cannot abuse the system. If he still chose not to have insurance, it's his choice.

 

[mskafka]

uh because........they'll all go to one or two of the least regulated states and operate out of them. And then what we will have is more like a credit card corporate haven situation.

And life insurance is an investment vehicle as much as it is insurance, or maybe more so. Car insurance and homeowners is highly regulated.

You beat me to it. I was just about to make that point.