Can you spot the fallicy?

[lehighguy]

http://www.nytimes.com/2007/08/25/op...mp;oref=slogin

Problem: Because the government forces insurance companies to charge the same rate to everyone, people in low risk areas end up subsidizing people in high risk areas, and people continue to build up high risk areas because they are being subsidized.

Liberal Solution:
Let insurance companies charge different rates, but tax people and use it to pay higher rates in high risk areas.

Anyone see the fallacy?