A Chicago based company called Health Care Service Corporation (HCSC) owns the Blue Cross/Blue Shield plans in five states. I guide my clients to these plans whenever I am asked for advice.
Why? Because HCSC is an aggressive marketer. They own a substantial share of Medicare business in these states and they work to increase market share by modernizing their practices.
Just recently their method of calculating Medicare Supplement rates for new policyholders has been changed to one that is more complex and labor intensive for those of us who sell their plans.
Does HCSC care that I am inconvenienced by their changes? No, they are only concerned about offering their products to the consumer at the most competitive price possible.
It is competition that allows them to attract (and keep) more customers than their competitors. It also forces the competitors to consider ways they can cut costs and offer more value to THEIR customers.
Free market competition works to bring products to consumers (insurance in this example) in a form that gives the most value for the least cost. Suppliers who cannot figure out how to compete effectively lose out and eventually quit or find other things to sell.
We consumers owe a big “THANK YOU” to the creators of free enterprise for the prosperity we all enjoy!