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Profit margins are capped by percentage. That creates the perverse intensive for insurance companies to pursue ever increasing costs in order to increase profit
by cpburns2009 6mo ago
Profit margins are capped by percentage. That creates the perverse intensive for insurance companies to pursue ever increasing costs in order to increase profits.
- ars 6mo agoYou are forgetting about competition, increasing costs means directly increasing premiums, and higher premiums means lower business.
- cpburns2009 6mo agoWhat competition? When enrollment comes around or you switch jobs you get maybe two insurance providers to choose from.
- jimbokun 6mo agoBut they don’t do this. They fight tooth and nail to keep the claims paid to doctors and hospitals low.