The article makes a claim that it is in the insurance companies best interest to make the overall cost of healthcare to go up so they can get a bigger profit.

The article makes a claim that it is in the insurance companies best interest to make the overall cost of healthcare to go up so they can get a bigger profit. While I somewhat agree with that claim, I suspect that there are many systemic policies designed into healthcare by policy makers that create these inefficiencies in the first place. 1) why can’t an insurance offer a lower cost option? It’s because of the policy of what they are required to provide. 2) why do hospitals charge so much markup for everything? It’s probably because there is a lot that they can’t charge you for, they can’t charge you by hour by doctor and nurse quantity. So they have to charge arbitrary markups on random items. This allows for hidden profits esp by savvy financial data people. 3) what incentives are there to give cost effective services in the medical field? There are none. Customers will pay regardless, and insurance will cover regardless. Game theory wise, it is in the best interest for insurance companies a to cooperate with with medical service companies to push larger and larger bills to consumers.