law-of-freedom

I propose a ratemaking bureau for health insurance that fills the same function that NCCI does for Worker's Compensation.  All insurance companies would be required to submit all claim data electronically to the bureau, and the bureau would calculate average loss per policy by region, deductible amount, and a few standard easily measurable risk factors (like obesity).  These risk factors would be supported by the bureau's statistical analyses, which would show which easily obtained indicators predict losses most accurately. 

All insurance companies would be required to base their rates on these averages losses with reasonable provisions for expenses and profit (the reasonability of these provisions would be determined by regulators).  Companies with sufficient experience could use that experience to support modifying their rates away from the bureau averages.