In response to:

Risky Business

mike1592 Wrote: Aug 29, 2012 12:00 AM
Dr Sowell is wrong again on the issue of insurance increasing costs of covered preventative care. Yes, the paperwork costs increase overall costs, but just about EVERYONE with any sense will incur the costs of regular physicals and routine preventative care. So there is no risk these costs may or may not happen. But the collective power of the insurance payers can negotiate down the cost of these routine medical services, as everyone with medical insurance already knows. A $350 routine blood analysis is paid by insurance at more like $50. Yet the labs are happy to accept, which indicates they are still making money, but not gouging. So the service is provided, at a cost more nearly in conformity with marginal cost = marginal revenue.
Lindaislost Wrote: Aug 29, 2012 6:18 PM
Get the insurance companies out of the picture and the individual has the same negotiating power. My son goes to a lab that does frequently ordered tests...overall cost is anywhere from 35-200, depending on multiple factors. They don't take insurance. They wouldn't stay in business if they were not making a profit.
USMC LM Wrote: Aug 29, 2012 1:56 AM
If these things were not a part of MANDATED coverage competitors in the market place would drive the cost lower than what a negotiation could. If I had the choice as to which lab I wanted to use that would create a situation whereby you could actually find yourself in a "Walmart" situation where entrepreneurs would set up a "big box" operation and lower costs for EVERYONE through quality and volume. Anytime the govt gets involved in anything the costs will rise.

Insurance is all about risk. Yet neither insurance companies nor their policy-holders can do anything about one of the biggest risks -- namely, interference by politicians, to turn insurance into something other than a device to deal with risk.

By passing laws to force insurance companies to cover things that have nothing to do with risk, politicians force up the cost of insurance.

Annual checkups, for example, are known in advance to take place once a year. Foreseeable events are not a risk. Annual checkups are no cheaper when they are covered by an insurance policy. On...