For preexisting conditions it's subsidy or mandatory insurance are that the options.

Reader comment on: McGurn on Health Care

Submitted by Lyle (United States), Oct 12, 2010 22:06

Insurance is based upon the law of large numbers. Health insurance is subject to the healthy not buying it, so that the rates go up. Either everyone buys insurance, or you subsidize the high risk pool, (with taxes likely) which means that not buying insurance makes even less sense. It is very much like coastal wind (hurricane) insurance, which is becoming unavailable on the coasts because there is sufficient risk that the law of large numbers no longer works. So the government steps in to provide a pool that need not make money. Flood insurance is the same, even today 40 years after it was set up grandfathered properties pay a less than actuarial rate.

Of course the 3rd option is to go to single payer by the government which most developed countries have adopted.

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