Trumpcare

By Tom Haughey

In order to understand the opportunities and possible pitfalls confronting Congress, it is necessary for citizens to realize what causes health costs to increase and what insurance is. The first principle of business, for example, is that the market can’t charge more than the market will bear. If it does, nobody has enough money to buy the product and the company fails. The second principle is that free market competition brings down prices. As to the nature of insurance, let’s define it as a calculated bet between the seller and the client. The seller uses statistical tables to figure probabilities and charges in conformity to those tables. The client picks the insurance company with stability and the lowest price and bets that the price he pays will be exceeded by the company’s payout if he gets sick.

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