Competing for the Sick

U of C Booth B School professor John H. Cochrane at a Cato luncheon in Chicago. Philip Klein, TAS:

One of the most common rejoinders to those who advocate a free market health care system is: how would private enterprise cover those with chronic illnesses?

This is a valid concern. After all, under the current system, a profit-seeking insurance company does not have an incentive to take on a chronically ill patient whose medical costs will exceed any monthly premiums that the company could charge.

Cochrane has some ideas, with portability being key. His paper here.