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If this were true, health insurers would have taken a cudgel to the US hospital system decades ago and come up with a more efficient system. They haven't becaus
by rchaud 3y ago
If this were true, health insurers would have taken a cudgel to the US hospital system decades ago and come up with a more efficient system. They haven't because an opaque system allows them to maintain their own opaque practices.
- selectodude 3y agoHealth insurance companies don’t care about what your doctor earns in the same way home insurance companies don’t care about the cost of the roofer. They’re going to price in whatever that cost may be and call it a day. Health insurance has it easier too because there’s not really a concept of correlated risk in human populations. Most people do a decent job avoiding hurting themselves but when a flood comes, there’s not a whole lot anybody can do.
- jenny91 3y agoCOVID?
- chug 3y agoHealth insurance companies do actually care, unfortunately. They're incentivized to embrace higher prices since they have to spend at least 80% of premiums on payouts. If you have a fixed margin, well, you have to increase premiums to increase profit, so higher prices means more profit.
- bvan 3y agoProperty insurance and health or life insurance are very different markets.