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THE WEEK'S QUOTE
This week's quote is from THE PRINCIPLES OF PRICING HEALTH INSURANCE, by America's Health Insurance Plans (the association of health insurance corporations)
Some insureds make more claims than others, and consequently the cost of providing coverage is different for different insureds. The premium amount each insured pays must reflect the expected cost of providing coverage to that insured. Why? Suppose an insurer charged some insureds less than the expected cost of providing coverage to them. That insurer would have to charge other insureds an extra amount to make up for those paying less than cost. Those insureds paying extra would go to other insurers that would not charge them extra. The original insurer would be left only with insureds paying less than costs and could go out of business.
The article may still be available at CLICK HERE
To browse through quotes from past weeks CLICK HERE
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