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Originally Posted by drcampbell
Right. Just like you can save money by buying a car without power steering, power brakes or an automatic transmission, insurance corporations will beat a path to your door to sell you a less-profitable policy with fewer attachments.
Just whose payroll do you think those special interest group lobbyists are on? Soccer moms? What could possibly be a more effective way to move a "product" and increase profits than by getting the Legislature to require it?
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It doesn't make a lot of sense for a company to lobby for laws that place restrictions on themselves and drive up their costs. If they only wanted to sell the expensive packages, they could do it without government intervention. Kinda like the car companies often do in your example with all their expensive add-ons. The car companies do also see the wisdom of offering cars that are less expensive for those of limited means. Wouldn't doing the same be a good thing for the insurance companies, and their less wealthy customers?
The lobbyists are on the payroll of those that are providing the services for acupuncture, alcoholism treatment, athletic trainers, breast reduction, dieticians, drug abuse treatment, hair prosthesis, etc, etc. If they can force insurance companies to cover those services, they will have a lot more customers. The study I read confirmed that once these policies are required, the demand for them increases greatly. As a result, there is a tremendous incentive to get mandates for services.
On the bright side, I take it that we agree that it would be best to remove the government mandates, thus allowing less expensive policies to be offered?
