Quote:
Originally Posted by drcampbell
So how do you increase profits when you're caught between not being able to sell to more people and not being able to raise prices? Lobby the government to mandate a bunch of stuff that people wouldn't otherwise pay for. Sure, it raises costs, but it raises premiums (and profits) even more. And if some small, aggressive insurance company wanted to bite into the big corporations' market share with bare-bones, low-cost (and low-margin) policies, they're now prevented from doing so. It's a classic protection racket on both ends.
Unrestrained capitalism leads to two things: monopolies and corruption.
|
I can produce LOTS of examples where the party seeking the mandates is not the insurance companies, but I'll take you at your word that large insurance companies do team up with the government to put mandates in place that favor the large companies.
That hardly fits the definition of a free market.
If the problem is government mandates that favor large insurance companies and prohibit free competition, it seems that the solution should be less government, not more. Getting the government out of the picture (no more mandates) would allow companies with creative packages and low prices to compete.
