The free-market argument that prevails in Texas is that competition trumps all. Create an inviting market that will draw dozens of insurers and let them fight for consumers. Then the public wins.
That has worked with electricity deregulation; mortgages are another complex product whose prices are driven low by competition. But insurance is a separate matter, at least the way it operates in Texas.
"There's almost infinite variability in what's covered and what's not," said Stacey Pogue, senior analyst at the Center for Public Policy Priorities. "Today, most shoppers simply cannot make a true comparison."
That's expected to change in 2014, when health insurance exchanges are scheduled to come online.
The goal is to create a range of standard coverage options so policies can be compared on price, service and other factors. That would be especially useful in Texas.
In 2003, lawmakers deregulated auto and homeowners insurance, and allowed health insurers to create plans without state-mandated benefits. Consumer advocates insist that most residents have been shortchanged ever since, paying more in insurance premiums than most places and getting less coverage.
http://www.star-telegram.com/2012/02/08/3721627/end-may-be-near-for-hands-off.html
Hat tip: Star Telegram
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