Elizabeth Barrette (ysabetwordsmith) wrote,
Elizabeth Barrette
ysabetwordsmith
  • Mood: busy

Sauce for the Gander

It occurs to me that insurance companies (in general, but especially health insurance) have gotten into a habit of promising things they never deliver. "Bait and switch" is generally illegal, and grounds for lawsuit or complaint to chamber of commerce, Better Business Bureau, etc. And insurance companies often wind up owing people huge amounts of money that they refuse to pay. That's grounds for setting a collection agency on them.

I don't expect this sort of tactic would work very often; the companies are too rich and powerful. But if a LOT of people started suing the insurance companies and turning collectors onto them, it would drive them nuts, maybe even make them stop being so horrid. And halting that kind of attack would be a giant game of whack-a-mole, because there are millions of dissatisfied customers out there.
Tags: economics
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  • 29 comments
...go 4 levels up... Expand
bemused_leftist

Re: Hmm...

bemused_leftist

September 12 2009, 18:57:26 UTC 11 years ago

There are two reasons for buying insurance.

1. 'peace of mind' against large bills, which may last only till the first large bill actually happens and isn't paid

2. getting value every few months on small bills, which may last only till the insurance company notices that you're a loss to the company

We'd have to find some figures, but the fact that people do keep buying insurance may be a result of #1 -- they haven't yet made a large claim so
expect it to be paid as advertised. Some people do this in case of their child unexpectedly coming down with something serious. An emotional reason, which may or may not be supported by the odds.

In fact a good many young healthy people have rationally chosen to go without insurance -- which is why Obama's plan will force them to buy it. (Some figures of its cost and payoffs at my LJ.)
cissa

Re: Hmm...

cissa

September 13 2009, 22:02:23 UTC 11 years ago

There's a third reason for buying insurance here in MA: it's legally required.

And this is considered a "model" for the whole country.