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If your profit is limited to a max percentile by law, the only way you can possibly increase profits is to increase expenditures. Insurance companies have every
by merpnderp 7y ago
If your profit is limited to a max percentile by law, the only way you can possibly increase profits is to increase expenditures. Insurance companies have every incentive to increase costs so they can increase premiums, their only path to increased profits.
- jvagner 7y agoIf we're getting to the point where we can openly talk about getting rid of the industry -- unlikely but not an impossibility -- perhaps the industry itself missed a few opportune -- not opportunistic -- steps. My health insurance company is a non-profit. And I also supplant my coverage through a religious non-profit health expense coverage company. I'm not religious, but I answered their screening questions honestly and they accepted me. Providers and cover-ers are playing a game where the costs are an insurance against non-payment in and of itself. We've all heard the stories of a $10K bill here which would cost $400 elsewhere. If insurance companies want to be super-profitable, and if costs are aligned to unreasonable pricing tenets that can't be justified long term, the system will collapse, and deservedly. There are many ways to do capitalism, and some of them are bad for too many parties except the organization.
- irq-1 7y agoSalaries and shiny new buildings are expenses, and not constrained by profit caps.
- mrfredward 7y agoThe minimum loss ratio in the ACA sets a minimum for how much is paid out as claims. New buildings don't count toward meeting the requirement.