Tuesday, August 04, 2009

Covering Risks vs. Distributing Largesse

Politicians are already one of the main reasons why medical insurance is so expensive. Insurance is designed to cover risks but politicians are in the business of distributing largesse, especially with somebody else's money. Nothing is easier for politicians than to mandate things that insurance companies must cover, without the slightest regard for how such additional coverage will raise the cost of insurance.

If insurance covered only those things that most people are most concerned about-- the high cost of a major medical expense-- the price would be much lower than it is today, with politicians piling on mandate after mandate.

~Thomas Sowell

4 Comments:

At 8/04/2009 10:10 AM, Blogger threecollie said...

So right

 
At 8/04/2009 7:07 PM, Blogger randian said...

Since mandates increase the visible cost of insurance, how does this constitute distributing "largesse"? It's rather more like distributing poverty.

 
At 8/05/2009 3:35 AM, Blogger 1 said...

"Since mandates increase the visible cost of insurance, how does this constitute distributing "largesse"? It's rather more like distributing poverty."...

Hmmm, good point BUT you're not looking at it from a politico's point of view...:-)

 
At 8/05/2009 10:49 PM, Blogger OBloodyHell said...

Sorta duh: Anything that increases the payout without allowing a related increase in expense, or, alternately, requires an expansion of minimal coverage (reducing competition at the low end by creating a "glass floor") is defacto changing the game in favor of certain players. In the end, some group benefits, while the client and/or the taxpayer foot the bill. Hence, it is distributing largesse, either directly or indirectly.

 

Post a Comment

Links to this post:

Create a Link

<< Home