most up-to-date medical care. The challenge is a healthcare system that strikes the right balance between

quality, access, and cost.

Government Regulation of Insurance

The U.S. insurance industry is primarily regulated at the state level. Since 1871 there has been a National
Association of Insurance Commissioners that brings together these state regulators to exchange information

and strategies. The state insurance regulators typically attempt to accomplish two things: to keep the price of

insurance low and to ensure that everyone has insurance. These goals, however, can conflict with each other

and also become easily entangled in politics.

If insurance premiums are set at actuarially fair levels, so that people end up paying an amount that accurately

reflects their risk group, certain people will end up paying considerable amounts. For example, if health

insurance companies were trying to cover people who already have a chronic disease like AIDS, or who were
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