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the issue is funding... it doesn't matter if the hospital is run as a non-profit, as long as they are funded by insurance claims then the incentive is to do mor
by anentropic 10y ago
the issue is funding... it doesn't matter if the hospital is run as a non-profit, as long as they are funded by insurance claims then the incentive is to do more expensive treatment... paying for more equipment, doctors etc
publicly-funded health care has the opposite problem - constant pressure to reduce the budget
- kgwgk 10y agoDoes the insurance company have an incentive to pay as much as possible?
- LgWoodenBadger 10y agoIIRC, the ACA has stipulation that 80% of premiums must be spent on medical services, so...a larger spend -> increased premiums -> a larger 20% piece of pie they can keep.
- kgwgk 10y agoThat's true, the minimum MLR creates a distorsion to the incentives.
- kjetijor 10y ago[Gross oversimplification] Nope - insurers are incentivized to pay as little as they can get away with. Which leads to healthcare providers being incentivized to bill the insurers as much as they can get away with. They'll meet somewhere in the middle.