Initiative 725, and its successor, Initiative 245 failed to get the signatures needed to make it on either the November 2000 or the November 2001 ballot, respectively. For more information and the specific language of the initiative, visit their Web site. Back to top . The typical mode of operation of an insurance plan is to segment the pools according to risk, lowering the premiums for the good risk people but raising the rates and ultimately pricing higher risk people out of the market. In this situation, the healthy opt out of plans when premiums go up, but the sick stay on.
Expenses exceed premiums and plans lose money.
When a plan loses money, it pulls out of the market. This is what has happened in the individual insurance market and many rural markets. In his talk, however, he didn't provide an alternative to the current insurance system. Back to top.