Under Crist, the state of Florida picked up hurricane insurance coverage for many homeowners by charging rates that are too low. Republicans in the state legislature passed a reform bill to reduce the state's potential $18 billion liability, but Crist vetoed it.
Homeowners like the low rates, and since Crist wants to curry their favor in his run for the U.S. Senate in 2010, the veto allows him to pander to voters - at the risk of staggering losses to the state in the next big hurricane.
In effect, Crist is rolling the dice that he will be elected to the Senate before the next hurricane disaster hits. Meanwhile, Florida taxpayers bear the risk of this strategy.
For those who think a federal government health plan will be priced properly (i.e., to truly cover all costs), think again. As the Florida example shows, politicians much prefer to manipulate prices of government-provided goods or services to placate voters than to charge actuarially sound prices.
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