or at least a series of regional monopolies or minute oligopolies with the same effect - using market control to extort ever increasing premiums.
Paul Krugman on June 22destroyed the "public plan will kill market competition" meme the status quo defenders have been tossing about by pointing out a salient fact -
Great catch by Digby, who quotes Sen. Blanche Lincoln about how terrible it would be if a government-run insurance plan undermined free-market competition, then links to this:
The Justice Department considers an industry to be "highly concentrated" if one company has 42 percent of the market. In Arkansas — Senator Lincoln should take note — Blue Cross Blue Shield has 75 percent of the market. If you take government self-insurance plans out of the equation, it’s higher. The state ranks as the ninth most concentrated in the country. Is it any wonder that insurance premiums have risen five times as fast as wages?
There is no market competition. And That's what's causing price increases.
He pointed out in an interview/debate with Fareed Zakaria that Sen. Grassley's state has an insurance company that dominates 74% of the market. He argues that's true of most small states but then also links to a study showingthe same situation(regional monopoly) and effect(rapidly increasing premiums) for Pennsylvania.
The other money point he makes on June 22 is that the current system's idea of competition is "who can weed the sick people out best".
In a rush gotta go retrain for a new career so I can get more health insurance. Just wanted to lob two cents on the scale. If it's been diaried before, so what, it's worth repeating.