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I don't understand. If you pay $5000 a year for your medical insurance, but it paid $10k for your medication, how have they made money? If they could purchase t
by gambiting 4y ago
I don't understand. If you pay $5000 a year for your medical insurance, but it paid $10k for your medication, how have they made money? If they could purchase the same medication for $2000 instead, surely it would be more profitable for them?
- closewith 4y agoPart of the U.S Affordable Care Act is the so-called 80/20 rule, which limits profit margins to 20%. Therefore, the greater the overall healthcare spend by insurance companies, the greater the allowable profit.
- thaumasiotes 4y ago> If they could purchase the same medication for $2000 instead, surely it would be more profitable for them? If the 60% profit margin is illegally high, then no, it's worse. They'd be better off paying more money for the same thing.
- giantg2 4y agoVerticle Integration. For example, CVS Caremark is my insurance. They force me to get most medication through CVS or their mail order service.