4 ms·

You make a good point. Insurance companies aren’t actually that profitable margin wise. They just are so massive that their 5-6% margins add up to huge numbers.

mtnGoat 7y ago
Yes, people always miss this, insurance companies do charge a lot, but their margins aren't high. They too are giving a lot of their income to attorneys, lobbyists, etc. When I see people simply blaming insurance it shows me they don't see the actual picture past the first layer.
- shigawire 7y ago
  If one were to view insurance providers as unnecessary, then any percentage margin can be seen as a leech on the systems. Saying they are unnecessary would be a misunderstanding of our current system. But to say our current system can be altered to render insurance as we know it today unnecessary is a different thing.
  - brennanpeterson 7y ago
    They could have zero.margin and still be a net negative. It is the payment to insurers, not the profits, that are at issue.
  - kaushikktiwari 7y ago
    We need a single payer--that's the answer. Wrote about it here https://news.ycombinator.com/item?id=21710050 https://news.ycombinator.com/item?id=21710050
- tehlike 7y ago
  Feels like though that tiny margin is to blame. I remember reading about some law that commands 80% or something of insurance premiums to be paid to care and administrative costs. If that is the case, thr only way you can increase profits is to be ok with ridiculous pricing you keep getting... My personal anectode is a genetic tests done for pregnant ladies. Natera, iirc, charged something like 8k$. I asked for cash price they said 230$. Go figure
kaushikktiwari 7y ago
Saw your comment, thanks for bringing that up. Insurance companies dont take the prize, its the brokers--distribution is where the lion's share of premium goes. Wrote about it here: https://news.ycombinator.com/item?id=21710050 https://news.ycombinator.com/item?id=21710050

mtnGoat 7y ago

Yes, people always miss this, insurance companies do charge a lot, but their margins aren't high. They too are giving a lot of their income to attorneys, lobbyists, etc. When I see people simply blaming insurance it shows me they don't see the actual picture past the first layer.

shigawire 7y ago
If one were to view insurance providers as unnecessary, then any percentage margin can be seen as a leech on the systems. Saying they are unnecessary would be a misunderstanding of our current system. But to say our current system can be altered to render insurance as we know it today unnecessary is a different thing.
- brennanpeterson 7y ago
  They could have zero.margin and still be a net negative. It is the payment to insurers, not the profits, that are at issue.
- kaushikktiwari 7y ago
  We need a single payer--that's the answer. Wrote about it here https://news.ycombinator.com/item?id=21710050 https://news.ycombinator.com/item?id=21710050
tehlike 7y ago
Feels like though that tiny margin is to blame. I remember reading about some law that commands 80% or something of insurance premiums to be paid to care and administrative costs. If that is the case, thr only way you can increase profits is to be ok with ridiculous pricing you keep getting... My personal anectode is a genetic tests done for pregnant ladies. Natera, iirc, charged something like 8k$. I asked for cash price they said 230$. Go figure

kaushikktiwari 7y ago

Saw your comment, thanks for bringing that up. Insurance companies dont take the prize, its the brokers--distribution is where the lion's share of premium goes. Wrote about it here: https://news.ycombinator.com/item?id=21710050 https://news.ycombinator.com/item?id=21710050