The buzzword of the day is competition, even health plans hitting the proposed excise tax cap is being blamed on the lack of competition to health insurance companies. That seems like a real stretch.
If we want more competition, why are we treating insurance companies like utilitites by restricting their underwriting and even their loss ratios, pay practices and administrative costs?
Why, if there is a level playing field, don’t we believe that they will be forced to be efficient just to get customers. I understand that in some areas one carrier may dominate the market, so why don’t we make it easier for an insurer based in Oregon to sell coverage in Alabama?
There are many ways an insurer can be creative to attract new customers and keeping them, price is one, service is another, efficiency still another.
It apears to me our current efforts are thrawting, not encouraging real competition.
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