In short, government regulators cannot force companies to charge low prices and provide high levels of

insurance coverage—and thus take losses—for a sustained period of time. If insurance premiums are set below

the actuarially fair level for a certain group, some other group will have to make up the difference. There are

two other groups who can make up the difference: taxpayers or other insurance buyers.

In some industries, the U.S. government has decided free markets will not provide insurance at an affordable

price, and so the government pays for it directly. For example, private health insurance is too expensive for
many people whose incomes are too low. To combat this, the U.S. government, together with the states, runs
the Medicaid program, which provides health care to those with low incomes. Private health insurance also

does not work well for the elderly, because their average health care costs can be very high. Thus, the U.S.
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