Consider the following health insurance plan.<\/p>\n
It refuses to pay for certain medical care and then doesn\u2019t offer a clear explanation. It does pay for unhelpful care that ends up raising premiums. Its customer service can be hard to reach or unhelpful. And the people who are covered by this insurer have no choice but to remain with it \u201d\u201d or, at best, to choose from one or two other insurers that are about as bad.<\/p>\n
In all likelihood, I have just described your insurance plan.<\/p>\n
Health insurers often act like monopolies \u201d\u201d like a cable company or the Department of Motor Vehicles \u201d\u201d because they resemble monopolies. Consumers, instead of being able to choose freely among insurers, are restricted to the plans their employer offers. So insurers are spared the rigors of true competition, and they end up with high costs and spotty service.<\/p>\n