Private Health Insurance

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Private Health Insurance

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What's Wrong with Private Health Insurance?

Bernie Sanders wants to get rid of private health insurance. Quite a few Democrats, including a number of presidential candidates, seem to agree.

But why? What’s wrong with private health insurance?

A lot of things, it turns out. All too often, private health plans have perverse incentives to underprovide to people who get sick -- incentives that are created by unwise government regulation. However, government insurance often faces the same incentives and the results can be even worse.

Think about the television commercials you routinely see for insurance other than health insurance. The Aflac duck reminds you of all the…

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Last Updated : Tuesday, February 21, 2023