I have been saying that state regulators are primarily responsible for high healthcare insurance rates. I heard Speaker Pelosi say that insurance companies make “immoral profits”. The truth is that state regulators limit insurance company profit, but by imposing universal healthcare mandates regulators raise the cost of insurance to everyone. The last thing we need is a federal regulator. We know government regulation has not worked. Insurance is already highly regulated by state regulators.

        State regulators create mandates that in effect redistribute wealth. Healthy individuals who live a low-risk lifestyle by, not smoking, eating a healthy diet, exercising, drinking only in moderation, are paying for others who are high-risk due to their voluntary and unhealthy lifestyles. The result is that healthy living is penalized and unhealthy living is subsidized.

        Perhaps government has a role in assuring that insurance companies, like banks are solvent and will maintain adequate reserves to pay potential claims. Even this degree of government involvement has the potential of disrupting the free-market.  Some want the government completely out of all regulation. “To cure the problem requires not different or more government regulations and bureaucracies, as self-serving politicians want us to believe, but the elimination of all existing government controls.” See: A Four-Step Healthcare Solution

        In a truly free market insurance companies could offer a policy with lower premiums to individuals who are living a voluntary healthier lifestyle. Obviously those who do not fall into this group would be paying higher premiums. At least in this example low risk individuals are not penalized with higher costs because of the high risk individuals. Voluntary behavior such as smoking, poor eating habits, and drug or alcohol addiction are known to cause illness. This class of people will likely require more expensive medical treatment. They should pay the cost of their lifestyle, and the higher premiums are also likely to motivate those individuals to live a healthier lifestyle in order to obtain lower insurance premiums.

        There is nothing inherently unfair about a system where everyone carries his own weight; however, liberal Democrats have conditioned us to think that the government has the right to demand that the healthy care for the sick, and that the rich share their wealth with the poor.

        Still the only real solution is for government to get out of the way of industry and allow those who know how to run a business create high paying jobs. That way everyone who wants to work can, and they will be able to afford medical insurance.