Reply #32: This is a very good article . . .

[NavajoRug]

It reinforces something I've said for a long time.

ANY insurance-related system is fundamentally flawed because it involves distorted transactions in the marketplace. Under normal circumstances, a buyer agrees to buy what a seller charges, and prices fluctuate with supply and demand.

The problem with an insurance-based system is that there are two "buyers," and they don't have the same goals in mind when they approach a transaction. Buyer #1 is the person who is insured, and he does not care about the price of the service because he is not paying the cost. Buyer #2 is the insurance company, and it does not care about the quality of the service because it does not have to live with the results.

This does not just apply to health care, mind you. If you look at any state with serious problems with auto insurance costs, you'll find that the source of the problems is remarkably similar to what we're facing with health care.