Will Anthem act like a slumlord health insurer if the CO Division of Insurance forbids them from increasing rates?  The Denver Post reports that Colorado authorities are still deliberating about whether to permit Anthem to increase premiums. It’s taken as a given that government officials have a right to interfere with what should be private transactions in this way.  My guess is that forcing Anthem to keep premiums down will encourage them to skimp on customer service, their network, and other expenses.  That is, they’ll act like insurance slumlords, just as landlords respond to rent control.

Yet given the state of Colorado politics and the political climate elsewher,e there’s very little “private” aspects left in the health insurance market.  State-level politicians require small-group and individual policies to include certain benefits (mandated benefits) and limit how much insurers can determine premiums based on risk, or lack of risk (insurance price controls, community rating).  State authorities also ban customers from buying more affordable and/or desirable policies legal in other states.  These controls reduce competition and increase premiums.