Quote:
Originally Posted by Derwood
A government option will not put private insurers out of business, just like: the USPS hasn't put FedEx or UPS out of business, government funded state universities haven't put private universities out of business, etc.
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FedEx is a niche player in the market. The founding of the company is based on exploiting a need not being served by the Postal Service. FedEx will never be able to go head to head with the post office. I am not even sure they should.
Private universities and public universities operate in a pretty unique business and I don't see similarities to health insurance. the most obvious difference is that people see insurance as more of a commodity than a university education. People will pay a premium for a Harvard education because of the perceived value compared to an education at a state school. Also, a school like Harvard only accepts a small percentage of those who apply. Most people would not care if their insurance card says, Blue Cross, Aetna, Cigna, Big Government or ABC, they care about the contract, they care about their doctor, they care about the hospital they would go to, etc.
Also,most people who attend private universities get a subsidy (scholarships, aid, discount loans, etc.) in some cases the out of pocket costs are not that different for those who qualify. The "rich" don't care about the cost.