Quote:
Originally Posted by Roadking2003
Correct! The fix? Get government out of the insurance business. Then let a free market control prices.
|
The state of PA lost about 2 billion forming a pool for medical malpractice insurance in the state back 20 years or so ago.
Doctors got huge rate cuts, then everything fell apart and prices spiked back up....lots of market disruption and the taxpayers got to help bail out the whole thing.
Florida right now is sitting on a $30billion timebomb call Citizens insurance which sells homeowners insurance at inadequate rates. If they were a private insurer they'd be shut down from operation due to their rates and lack of money to pay claims if hurricanes come rolling in.
It's not an if, it's a when.
Currently, all the FL residents are subsidizing the homeowners insurance costs of people living close to the coast in the south end of the state. When the crap hits the fan they will try to get a fed bailout and make the rest of us subsidize it too.
In general, you are right...government meddling in insurance has generally met with disaster. (Look at the flood insurance plan they are finally getting around to fixing....but I digress.)