You go to buy health insurance and do some checking around. You discover the same policy is available from many insurance companies, but the prices are way out of whack. You find you can get a policy from Company A for $300 a month, and yet the same policy can be purchased at Company B for $225 a month. What’s up with that?
Competition is what is up with that. Insurance is a business and their bottom line is selling policies to consumers. If they need to price competitively to do that, then so be it. This isn’t to say that just because you might get that policy for $225 a month for a year, doesn’t mean it won’t be jacked up when the policy expiry date approaches. You have to watch stuff like that, and keep on top of who is charging what for their policies. It’s one way to save money, if you don’t mind changing insurance companies every year.