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Stupid question—if an insurance provider keeps denying claims which could keep elderly patients healthy, and those patients then die, isn't the insurance provid
by lusus_naturae 3y ago
Stupid question—if an insurance provider keeps denying claims which could keep elderly patients healthy, and those patients then die, isn't the insurance provider just cutting off its own source of income?
But I agree that it's about incentives, and insurance carriers are incorrectly incentivized for the service they provide vs. what they're expected to provide.
- alberth 3y agoThe old adage goes: “those who don’t use insurance, pay too much. And those who use insurance, pay too little”. It becomes a math problem for insurance companies to keep that equation positive. And since claims far exceed the premiums any single member pays, the easiest way to stay positive is to deny claims. Even if that sacrifices losing a few premiums.
- bigfudge 3y ago>die, isn't the insurance provider just cutting off its own source of income? No because that person will have paid right up the the point they become expensive. Most people incur the vast majority of their health costs in the final year or even months of life. This is why insurance based medicine will always be problematic - there’s just too much incentive to cheap out on people when they are weakest and most powerless.
- heavyset_go 3y agoNot really, the highest medical costs are incurred in old age. Insurance companies would have to make less costly payouts if they didn't have to cover older people.
- gorjusborg 3y agoAnother angle is premiums paid vs claims awarded. If an elderly patient has paid in 50k over a lifetime and is making a 100k claim, now is an okay time to lose that customer.
- deleted 3y ago[deleted]