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View Diary: Why Baucus' plan is pretty damn good. (186 comments)

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  •  Insurance market pricing (2+ / 0-)
    Recommended by:
    cdkipp, IowaPopulist

    in an efficient market should be just like other pricing.  Check out online rates for car insurance, life insurance etc.  Very competitive and priced pretty close to cost.  

    Health insurance pricing is much more complex because the opportunity for adverse selection is so high.  Meaning, waiting til you get sick to buy insurance.  It is also complex because it is generally not portable and their are som many millions of options, etc.  the insurance companies do not want you to be able to shop around.  This strategy has gioven them substantial "pricing power" - but all of these bills will seriously erode that.  Just as Geico screwed it up for Allstate, all the bills require minimum coverage levels and complete portability so you can swicth companies if one offers a better deal.  

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