Leftist L.A. Times: Starbucks unveils a private health insurance exchange. Is that a good thing?

The L.A. Times reports:

To hear Starbucks tell it, the company’s introduction this week of expanded insurance choices for workers represents a major advance in health coverage.

“Providing industry-leading benefits for eligible full- and part-time partners is a cornerstone of who we are as a company,” Ron Crawford, Starbucks’ vice president of global benefits, said in a statement. “Much like a travel site, our partners will be able to navigate an easy-to-use online platform to choose between more insurance carriers and coverage levels at more competitive prices to help them find the right plan for their own needs.”

By switching to a plan “that better meets their individual needs,” the company said, employees could save as much as $800 a year. The savings for those with family plans could reach $2,600 annually, it said.

As I wrote last week, such savings typically come in the form of lower premiums and higher deductibles and co-pays — an option that will be especially attractive to younger, healthier people who see no need for more-comprehensive insurance.

The danger for the U.S. healthcare system is that this can result in higher costs for people desiring, or requiring, stronger coverage. This is known in insurance circles as “adverse selection,” or higher costs for the sick because they’re no longer pooling risk with the healthy.

Some people want to limit choice for socialist purposes.