Third party payers insulate the patient from the cost of healthcare. Both of these factors are powerful inflationary forces. Many of these benefits are the result of the political process, including public hearings, notices, and formal record keeping. One strong candidate for government regulation is the health insurance industry. Driven by market forces and a quest for profit, the insurance industry has a vested interest in denying access to healthcare.
Experience rating breaks down community.
Driven by the profit motive, underwriting is more serious than simple exclusion of individuals. This begins all well and good, with the premium rate reflecting the relative good health of the group. All group members enjoy low, affordable premiums. A year later the group has aged a year, and some have gotten sick. The premium is therefore adjusted for the new level of risk based on the new average age and health of the group.