Chevy Doctors, Mercedes Doctors

This article can be criticized on a number of points, including that it doesn’t make a distinction between moral hazard from the standpoint of one who commits an action and the lack of moral hazard from the point of view of the person who pays the policy premium or collects the insurance money. Three examples: a wife who insures against the death of her husband, including his suicide; insurance payments for the vicarious liability of employers for the torts of their employees; and additional insured endorsements for general contractors in a subcontractor’s liability policy. (The comments to the article, which are some of the best and most informed comments you will see on a given topic, extensively discuss the life insurance aspect).
The article does make some good points about regulation of insurance markets, but I had to chuckle at the contention that state regulation of medical schools means we all get BMW or Mercedes doctors, at BMW prices, when sometimes all we need is a Chevy doctor. I just returned from North Dakota where, I can tell you from personal and family experience, there is extensive evidence medical schools turn out lots of Yugo and Ford Pinto doctors. From some of the medical care I’ve seen there, you’d be really happy if you could get a Chevy doctor, instead of some guy who’s as likely to kill you as to cure you.

Comments Off on Chevy Doctors, Mercedes Doctors

Filed under Industry Developments

Comments are closed.