- Jul 10, 2006
- 29,873
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I'm not at all convinced that we need insurance companies at all. Let's take them out of the equation, and let people keep the money they'd otherwise pay to those companies (and employers keep/redistribute what they pay insurance companies on their employees' behalf) and see what happens.
I once worked for a company that became self-insured. It put up some money and bought truly catastrophic insurance (like million dollar claims.) Didn't work too well, as the company was very slow in providing the money (to the point that a couple people almost lost houses due to cancer treatments, as the providers refused to provide more services if they weren't paid) but the concept is probably sound. However even self-insured companies have to have personnel (possibly outsourced) to do the myriad paperwork required in health care. You can't just mail out checks to everyone who sends a bill; you have to verify that the treatment actually took place, that the bill is accurate, and that the service is reasonably priced. Otherwise we'd have massive fraud. That is the main part of what insurance companies do, paperwork, which must be done even in a single payer system (you'd want to know for instance that someone had an appendix removed twice, even if everyone is covered for everything.) There are no free rides, and in my opinion government's inefficiencies outweigh the insurance companies' profits.
