Paul Krugman's mention of the "death spiral" health insurance co's are caught in leads to the thought that they aren't the only ones. Remember the definition?
[P]rivate health insurance only works if insurers can sell policies to both sick and healthy customers. If too many healthy people decide that they'd rather take their chances and remain uninsured, the risk pool deteriorates, forcing insurers to raise premiums. This, in turn, leads more healthy people to drop coverage, worsening the risk pool even further, and so on.
Now, what WellPoint claims is that it has been forced to raise premiums because of "challenging economic times": cash-strapped Californians have been dropping their policies or shifting into less-comprehensive plans. Those retaining coverage tend to be people with high current medical expenses. And the result, says the company, is a drastically worsening risk pool: in effect, a death spiral.
Whether this is just another insurance scam rationalization or an actual truth is beside the point. The question is, doesn't that process - creating a situation out of sheer greed that then gets out of control - sound awfully familiar? It should. It's precisely what Wall Street and the Bushies have done to the country: set in motion an economic death spiral.