4 ms·

My impression is that they mainly focus on pushing costs to the patient in the form of higher and higher deductibles.

nradov 4y ago
Who is "they"? Medical insurance companies don't really set deductibles. They offer a menu of options to customers (mainly large employers) and let them pick. Insurers are happy to offer plans with zero deductible, but the premiums will be higher. This is all based on actuarial calculations; insurers generally don't make any more profit on high-deductible plans. If you think your deductible is too high then complain to your employer. There is a tax incentive at work here as well. Individuals enrolled in high-deductible health plans (HDHP) can often receive a federal income tax break, so you have to factor that in when calculating your net cost.
- spaetzleesser 4y ago
  The configuration of your health insurance is negotiated between insurance and employer. It seems pretty obvious that they are setting things up in a way that’s good for them.
  - nradov 4y ago
    You don't seem to understand how that negotiation works. Higher deductibles aren't good for medical insurers. In terms of insurer profit margin, higher deductibles are neutral to slightly negative. It's the employer (customer) who has complete control over deductibles. That is the reality of how the market works. Deductibles are generally going higher because healthcare providers and pharmaceutical companies raise prices every year, and because we have an increasingly unhealthy population that demands more services. Insurers try to hold down those increases but with limited success, so they pass those costs on to their customers (employers), and those customers in turn pass on the higher costs to their employees.
    - spaetzleesser 4y ago
      We are saying the same thing. Employers and insurance negotiate with each other for their own benefit and the employee is the sucker.

Who is "they"? Medical insurance companies don't really set deductibles. They offer a menu of options to customers (mainly large employers) and let them pick. Insurers are happy to offer plans with zero deductible, but the premiums will be higher. This is all based on actuarial calculations; insurers generally don't make any more profit on high-deductible plans. If you think your deductible is too high then complain to your employer. There is a tax incentive at work here as well. Individuals enrolled in high-deductible health plans (HDHP) can often receive a federal income tax break, so you have to factor that in when calculating your net cost.

spaetzleesser 4y ago
The configuration of your health insurance is negotiated between insurance and employer. It seems pretty obvious that they are setting things up in a way that’s good for them.
- nradov 4y ago
  You don't seem to understand how that negotiation works. Higher deductibles aren't good for medical insurers. In terms of insurer profit margin, higher deductibles are neutral to slightly negative. It's the employer (customer) who has complete control over deductibles. That is the reality of how the market works. Deductibles are generally going higher because healthcare providers and pharmaceutical companies raise prices every year, and because we have an increasingly unhealthy population that demands more services. Insurers try to hold down those increases but with limited success, so they pass those costs on to their customers (employers), and those customers in turn pass on the higher costs to their employees.
  - spaetzleesser 4y ago
    We are saying the same thing. Employers and insurance negotiate with each other for their own benefit and the employee is the sucker.