Out of Control Policy Blog

On Requiring Health Care Coverage

One of the supposed benefits of health care reform, as listed by reform advocate Families USA, is that a more regulated marketplace would see the government "clamp down" on insurance company "abuses" so people can no longer be denied coverage. But think about this:

What if we forced all book publishers to print every manuscripts they received? What if we clamped down on the evil music industry to make sure people who want to make a rock and roll album are no longer denied their right to fame? What if we regulated the sports world to stop abusive teams from denying individuals the right to play professional baseball or football?

The reality is that insurance is a business just like any other and forcing companies to take anyone who wants their services will bankrupt some, destroy the profit margin of others, and create a massive disincentive to enter the insurance industry for start up companies. This would be the end of new players in the insurance market, the limitation of competition, and the start to the end of private insurance companies.

Anthony Randazzo is Director of Economic Research


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