Anavex Life Sciences Corp (AVXL)

[MycroftHolmes]

Re: Insurance

profit = premiums - cost of health, as MycroftHolmes states but...

The problems is greed.

If the cost of health goes down, it would be nice if the premiums went down so that profits stayed the same. This NEVER happens. Nothing wrong with increasing profits, at a reasonable rate or following the rate of inflation. Never happens because of greed. Human nature is difficult to regulate and control.

IMHO

In this case, the problem is a government created coercive monopoly.

The downward pressure on prices in a market is normally driven by competition for customers. That is why cell phones & computers fall in price year over year.

However in the United States, many states grant health insurance companies a local monopoly/cartel thus barring competition and removing downward pressure on price.

Personally, I look forward to the day that every health insurer in the country can compete for my business regardless of where my house is.

Cheers

Mycroft