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What happens when private insurance companies cover only healthy people?

One economic point brought to the forefront in the universal health care debate is something economists have talked about for decades, but one that only recently Americans are beginning to understand fully.

Namely, efficiency in health care is a good thing, but if it's applied to private health insurance company business models -- i.e. insuring only healthy people or the healthiest citizens -- the logical consequence of it is, obviously, a larger and larger pool of excluded, less-healthy citizens and/or people who need more care and whose health care costs are higher.

Continue reading What happens when private insurance companies cover only healthy people?

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