“Exclusion” is the driving force behind “free markets”

The front page of this morning’s Denver Post has an unintentionally revealing headline:

Audits cut costs in health coverage.

Have they discovered new efficiencies? Have insurance companies cut back on sales commissions? Have executive salaries been slashed?

No. Not at all. The article merely says that insurance companies are now doing audits to be sure that dependents are really dependents. If they are not, then they are excised from the system. They save costs by shifting the burden somewhere else, usually government.

The article really only highlights the principle of the “exclusion zone.” Insurance companies are able to extract a fee to let people into their system. If they could not exclude people, getting in would carry no benefit, and the companies would not exist.

Private health insurance companies can only make money if they exclude the elderly, the poor, the already sick. That’s why public systems in the thirty or forty other countries that use them manage to cover all their people at half our cost: They exclude no one.

4 thoughts on ““Exclusion” is the driving force behind “free markets”

  1. Exclusion IS the root requirement to all economics.

    You cannot eat the same apple I eat. One of us be excluded from eating that apple.

    Human society has evolved to create an orderly means of applying exclusion to scarce resources.

    You cannot create unlimited access to the same resource – it will be eventually completely exhausted.

    You are confusing a multitude of constructs.

    You want the destruction of voluntary choice – that is, the company creating its conditions of its own services – and you are creating the means of violence of the gun to allocate those resources.

    You are seizing the money of others and distributing on your own desires enforced by a gun.

    The fact that the resource remains scarce has not changed.

    All that has changed is your method of allocation – away from voluntary and into violence.

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