Let’s Have Some Competition

One of the arguments, I have heard about why we need big government run health care reform is that the evil insurance companies need some competition. Why is it that the insurance companies are restricted to practice in a specific state? Wouldn’t it make sense that the private sector would compete vigorously if they were allowed to?

My guess is that there have been problems with insurance claims in each state. Our law makers, in their infinite wisdom, and their drive to get re-elected, proposed new rules to protect us from those evil insurers. The result, fifty states with fifty different sets of rules about  how to run an insurance company. There went the competition between states.

If  uncle is really serious about health care reform, he would set up some simple standards for heath care insurance, similar to those used by Medicare supplements.  Why is it necessary to set up a totally unfair government run insurance company to compete against the private sector, when a simple set of standards would be enough?

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