"Sure but the question was about non-profit health insurance companies. And
insurance companies are more susceptible to size-related competitiveness
problems than many industries because the risk for an insurance company is
directly related to its profitability and the risk is directly related to
the size of the pool of people it insurances. Therefore small number of
covered individuals == greater risk == lower income certainty (and
concomitant higher reinsurance rates)."

Yes. Smaller pool means higher prices which means an even smaller pool.
Eventually, this leads to merger or closure and less competition for the
consumer.




J

-
Those politicians, professors and union bosses who curse big business are
fighting for a lower standard of living. - Ludwig von Mises


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