tag:blogger.com,1999:blog-7826806328399358366.post63514143809774038..comments2023-05-30T04:11:57.894-06:00Comments on Steam Powered Opinions: Private insurers opposed to Ryan plan, for nowSteve Balbonihttp://www.blogger.com/profile/05238259030777462457noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7826806328399358366.post-73479770094872325042011-04-19T13:05:43.922-06:002011-04-19T13:05:43.922-06:00There is a bit more to it than you suggest. For e...There is a bit more to it than you suggest. For example, most universal life insurance policies are sold to seniors, often nice fat ones. It is simply a matter of being able to price the policies appropriately and relatively modest levels of information asymmetry on the material facts (which creates moral hazards when they exist).<br /><br />Medicare cost about $12,000 per senior beneficiary per year (e.g. $24,000 for a married couple), the last time I looked, with providers paid about 100% of provider cost, isn't terribly good at negotiating provider prices, and has very low administrative, marketing and investor costs. Private insurance would be hard pressed to meet the cost structure unless it was much better at negotiating cost.<br /><br />But, the real trick is that there is a strong incentive for insurers in the program that is community rated to use the features of the product or the way that the product is administered to make it more attractive to healthy people and less attractive to sick people than than competition, which is the opposite of the kind of incentive we would like to see.Andrew Oh-Willekehttps://www.blogger.com/profile/02537151821869153861noreply@blogger.com