Tag Archives: Michael Pieciak

A case study in the pitfalls of free market health insurance

Seems like it was just the other night I was writing about a certain candidate who believes the cure for the health care crisis is to give insurance companies free rein. A Thousand Flowers Will Bloom, goes the fantasy. Problem is, when you let your garden grow, you get a thousand flowers and a million weeds.

A classic example of this was (briefly) in the news earlier this month, when the Vermont Department of Financial Regulation imposed its largest-ever fine against an insurance company.

The offender, Companion Life Insurance of South Carolina, was fined for selling cartoonishly bad health care policies to Vermont college students between 2014 and 2016 without ever seeking the requisite DFR approval. If the policies had been submitted to the state, they would have been found in violation of both state and federal law.

The policies did not cover most of the medical conditions that commonly befall college students: athletic injuries, mental health coverage, substance use treatment, immunizations, preventative screenings (including for STDs) and contraceptive management.

This is the kind of thing the Meg Hansens of the world see as the bright shiny free-market future of health care. Fortunately for us, we do regulate insurance.

Continue reading