3 ms·

So you are saying insurance companies have incentives to drive up the cost of healthcare as part of their business model? That sounds very damaging considering

• rayiner 4y ago
  > So you are saying insurance companies have incentives to drive up the cost of healthcare as part of their business model? Yes, as part of the ACA. Stories about denied coverage create outrage, but the structural incentive for insurance companies is to cover too much. My dad is a public health expert. He was speaking with a German colleague recently about Germany’s extensive hospice system. He came back asking why we don’t do that here. > Might make more sense to scrap that captured industry built on perverse incentives that has only gotten worse and worse during my lifetime Lots of developed countries make their health systems work with a private health insurance based system. Germany, the Netherlands, Switzerland, and Japan all rely on that model. In Japan, for example, 70% of health care spending comes from employer-provided insurance or out of pocket spending. What’s different in all of those countries is: lower doctor and nurse pay, centralized price controls, greater supply of care providers, and aggressive cost-benefit based control over use of expensive treatment.
• loeg 4y ago
  Yes, that is exactly the (problematic) incentive insurance companies have.