Loss Leader
I would save the receptionist., Moderator
On a free market, producers of any product or service compete by differentiating themselves from their competitors. This differntiation may take the form of lower prices, or higher quality, or unique features. In the U.S. there are over 1000 federal and state laws regulating insurance, dictating what must be covered, what the allowable prices are, who is and is not allowed to enter the industry, and many other things. Nothing resembling a free market. Insurance companies answer to government agents known as "insurance commissioners", not so much their customers. See Murray Rothbard, Hans Hermann Hoppe, austrian school of econ. Hoppe gives a brilliant lecture called "from healthcare to welfare".
This answer actually gave me a headache.
The sad part is TinHat1234 has it pretty much backwards. The government agencies charged with overseeing the insurance business, both state and federal, regularly exchange managers with the insurance companies themselves. The regulators are as likely to be former insurance executives as high-level insurance executives are to become regulators.
Most political scientists and economists agree that this creates a situation where the government is more an arm of the insurace companies than the other way around. All that money buys a massive amount of access and all that access buys extremely favorable treatment.
Virtually the only governmental check on the insurance companies comes from the courts. These independent jurists hold companies to their policies and interpret their contracts of adhesion quite strictly.
But what do I know. My Masters in Public Administration and Doctorate in law is no match for your training as an audio technician at a local LA cable company.