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Well of course. In the USA, health insurance is legally required to spend at least 80% of premiums on medical care [1]. So, if they paid for only 50$ of care, t
by Veserv 2y ago
Well of course. In the USA, health insurance is legally required to spend at least 80% of premiums on medical care [1]. So, if they paid for only 50$ of care, they would only be able to make at most 62.50$ of revenue. The only way to keep revenue and total profits increasing is to increase costs.
[1] https://www.healthcare.gov/health-care-law-protections/rate-review/ https://www.healthcare.gov/health-care-law-protections/rate-...
- maxerickson 2y agoThe insurance still paid the $3700 or so, the rebate coupon is to remove the obstacle for the patient so that the larger payment gets made.
- rqtwteye 2y agoThat’s a really important point. All the incentives are to increase cost.