June 25th, 2009

ronin

An insider and former CEO explains how health insurance companies operate.


The reason we generally like markets is that the profit incentive spurs useful innovations. But in some markets, that's not the case. We don't allow a bustling market in heroin, for instance, because we don't want a lot of innovation in heroin creation, packaging and advertising. Are we really sure we want a bustling market in how to cleverly revoke the insurance of people who prove to be sickly?

http://voices.washingtonpost.com/ezra-klein/2009/06/the_truth_about_the_insurance.html

(via flemco)