You're not helping…

Click-through adventures again.  This time I start at Balloon Juice, go to the League of Ordinary Gentlemen group blog and end up reading this post, which has a link to Arnold Kling saying, concerning health insurance, the following:

The insurance industry does not have a solution for the pre-existing condition problem, so many people face lock-in. If John Cochrane’s idea of health status insurance were implemented, that would address the problem of lock-in.

I think to myself “health status insurance?  What’s that?” and click to my final destination, which explains the concept:

None of us has health insurance, really. If you develop a long-term condition such as heart disease or cancer, and if you then lose your job or are divorced, you can lose your health insurance. You now have a preexisting condition, and insurance will be enormously expensive—if it’s available at all.

Free markets can solve this problem, and provide life-long, portable health security, while enhancing consumer choice and competition. “Health-status insurance” is the key. If you are diagnosed with a long-term, expensive condition, a health-status insurance policy will give you the resources to pay higher medical insurance premiums. Health-status insurance covers the risk of premium reclassification, just as medical insurance covers the risk of medical expenses. (emphasis mine)

WTF…insurance to ensure your ability to pay for insurance?  Seriously?

I actually saw this yesterday and thought little of it at first, but the absurdity of the idea grated at me so hard I had to let it be known.  This seems like the kind of thing people come up with when their view of a market order is largely indistinguishable from the contradictory mess we have right now.  Who would actually buy this?

Having money for possible future surprise bills…didn’t that used to be called “savings”?


About b-psycho

Left-libertarian blogger & occasional musician.
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2 Responses to You're not helping…

  1. Vache Folle says:

    Maybe we could bundle and commoditize health status insurance contracts.

  2. b psycho says:

    Hey, depending on how gullible the supposed financial geniuses still are those could bring quite a haul. The original holders of the contracts could make enough money selling them to save for future expenses and render the original contracts moot! It’s a win-win!

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