Why the Insurance Industry Hates Health Reform

According to a recent "Business Week" article, the U.S. insurance industry is one of the least competitive markets in the country. The article notes that this lack of competition may be a key factor contributing to the sharp increases in premiums. The industry has responded to President Obama's attempt to create a "public option" by agreeing that reform is needed, and also by politely disagreeing with the assertion that a cheaper, high quality public option would not devastate the industry and cause mayhem with risk selection, throwing actuaries everywhere into fits of despair. They also forecast an inability to fairly compete with a government backed plan that will not have to abide by the same rules as private companies. More here.