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Eli Lilly CEO on Nationalized Health Insurance: Cost Effectiveness Stifles Innovation

Insurance companies are the modern day equivalent of stock brokers -- they are just useless administrative middlemen making money but providing no value. They will disappear -- I would short every one. The goal of insurance is to spread risk, and hence the larger and more inclusive the pool, the better the risk is spread. Including all 300 million americans in 1 risk pool is the most efficient way to insure all of us, and having 1 administrator administer that risk pool is also the most efficient. The for profit insurance system has demonstrated its inefficiency and its ineffectiveness -- I cant imagine anything worse. Yes, we will have a single payer insurance system and yes there may be some politics around the edges of what is covered. But even the most stringent of systems, such as Australia, recognize true innovation and provide a fair return to innovative companies. Truly innovative pharma companies will do just fine.