John Cochrane, writing at The Grumpy Economist, about what we should make of the big increase in churn in health insurance since Obamacare was put in place:*
A different view is that the supply churn is the [health insurance] industry's way of solving the problem [that it can’t make money if healthy people don’t buy insurance too]. By changing networks and coverage each year, by canceling policies frequently, by companies forming, dissolving, entering and leaving markets, they keep us on our toes. A stable wide network plan with reasonable cost will attract too many sick people. So, the answer is, keep it unstable. The same kind of price discrimination by complexity that pervades airlines, cell phones, and credit card contracts, might pull in healthy people who don't have time to spend three weeks a year finding out what doctors are covered by what plan. [emphasis added]
* Churn is the quasi-slang word used in finance to the kind of pointless buying and selling that consumers sometimes engage in to get a better deal: the consumers seem to think it has a point, but at the end of the day it looks pointless because few people actually got a better deal.