There is a bill pending before the Kansas State Legislature that would prohibit private companies from selling health insurance and would make the state the single payer of health care bills. Private health insurance companies that have made above normal profits have spent large sums of money trying to ________. This is an example of rent-seeking behavior.
A) pass an even more restrictive bill
B) get this bill made into law
C) fund the state for its single-payer system
D) prevent this bill from being passed into law

Question

Quizplus · Accepted Answer

Rent-seeking behavior refers to the practice of companies or individuals using their resources to obtain economic gain from others without reciprocating any benefits back to society through wealth creation. In this context, private health insurance companies are spending large sums of money to prevent the bill from being passed into law because it threatens their profits, which is a classic example of rent-seeking behavior.

There Is a Bill Pending Before the Kansas State Legislature