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This comment demonstrates a lack of familiarity with how health insurance pricing in the US works. 0 - One medical, which charges an annual fee, makes preventa
by x0x0 10y ago
This comment demonstrates a lack of familiarity with how health insurance pricing in the US works.
0 - One medical, which charges an annual fee, makes preventative care more accessible? How do you possibly draw that conclusion. (I say this as a happy subscriber).
1 - purchasers of insurance, mostly still employers, do care about costs
2 - insurers aggressively negotiate with hospital groups, so you do see pricing power differences in action. Fewer hospital groups and condensed ownership in a geographic region gives hospital groups more pricing power. See eg Boston public employees insurance group attempting to cap payments at 160% of medicare [1].
3 - It's well known that for many common procedures, regional hospitals vs teaching hospitals can offer 3-4x price differences with no (or even better!) outcomes at the regional hospitals. It's the insurers choice not to pass any of those cost differences, except in the broadest sense, ie narrow vs wide networks, on to insurees. Insurers also exercises unilateral control over that decision.
4 - People aren't incentivized to get into med school? That's news to the many applicants. The admissions are capped, in many ways, by government choice: see medicare resident limits.
[1] http://www.bostonglobe.com/business/2017/01/23/state-health-care-giant-pushes-for-cuts-hospital-payments/wjLoSDShdpqTH4eQja0R1N/story.html http://www.bostonglobe.com/business/2017/01/23/state-health-...