4 ms·
Foster competition? If a company can capture a greater share of the market by offering the same service with a lower premium, isn't that what they'll do? I do
by mac01021 8y ago
Foster competition?
If a company can capture a greater share of the market by offering the same service with a lower premium, isn't that what they'll do?
I don't know why that effect is not present now, but it could have much to do with the way most people get insurance through a group policy provided by their employer (and therefore get no chance to shop around).
- zbentley 8y ago> I don't know why that effect is not present now Inelastic demand. Whether you have a debilitating/life-threatening illness, or are worried whether the lump in your throat is heartburn or the cancer that'll end your life, your incentive to engage with competing market presences is massively diminished for several reasons (urgency, many people have a desire for their life-or-death decisions not to be commoditized, etc.).
- mac01021 8y agoThat explains why people don't shop around for health care. But it doesn't explain why they won't shop around for health insurance.