Healthcare Industry Profit Margins...

[Patranus]

Originally posted by: senseamp
Govt can spread and pool risk without taking 20% cut.

Government can borrow and print money so there is no inherent risk or "risk pool"

 

[theeedude]

Originally posted by: Elias824
This is probably the biggest flaw with private sector insurance, but do we really need UHC to fix that? maybe we could just toss out some new legislation to deal with that issue. Give tax breaks to companies that dont do that sort of thing, or just fine them if they do. Maybe we could have a public solution, but we dont need to destroy the private sector to do that. Think of Fedex, USPS, and UPS.

Hence the public option.

 

[theeedude]

Originally posted by: Patranus

Originally posted by: senseamp
Govt can spread and pool risk without taking 20% cut.

Government can borrow and print money so there is no inherent risk or "risk pool"

Is that supposed to be counter argument or consent?

 

[dainthomas]

Originally posted by: ElFenix

Originally posted by: senseamp

Originally posted by: JS80
Apple has like a 15% profit margin. Why don't they vilify them?

Apple creates products and services. It contributes to GDP. Insurance companies simply take a cut of healthcare spending, they don't actually provide any health care themselves. If you think they do, go to insurance company headquarters instead of hospital next time you are sick.

yeah, risk spreading and pooling isn't worth anything!

The gov't can't do this without 20% profits? The insulin I get from the VA retails for ~$70. I guaran-frickin-tee the government doesn't pay anywhere close to that. If I didn't have the VA and lost my job I'd be screwed, no one is going to insure a Type 1 diabetic.

 

[blackangst1]

Originally posted by: dainthomas

Originally posted by: ElFenix

Originally posted by: senseamp

Originally posted by: JS80
Apple has like a 15% profit margin. Why don't they vilify them?

Apple creates products and services. It contributes to GDP. Insurance companies simply take a cut of healthcare spending, they don't actually provide any health care themselves. If you think they do, go to insurance company headquarters instead of hospital next time you are sick.

yeah, risk spreading and pooling isn't worth anything!

The gov't can't do this without 20% profits? The insulin I get from the VA retails for ~$70. I guaran-frickin-tee the government doesn't pay anywhere close to that. If I didn't have the VA and lost my job I'd be screwed, no one is going to insure a Type 1 diabetic.

A little derailed, but...I know for sure in two states you would get into the state insurance pool at a net cost of <$30/mo, all diabetes supplies (test strips, insulin) covered. I know, because Ive done it (fairly recently).

 

[ohnoes]

Originally posted by: Patranus
So why should a company do its customers a disservice to insuring someone who has a preexisting condition?

Should a life insurance company be required to provide life insurance at affordable rates to someone with cancer that is terminal in 99.99% of cases?

I agree. It doesn't make financial sense for a for-profit company to insure someone that's at a high risk for catastrophic sickness.

This then goes to more of a ethics/moral question: what should we do about people that insurers won't insure due to their risk or charge too high of a premium as to make it unaffordable? (and as a corollary, those that get kicked out of their plans for some b.s. reason).

Its kinda like the USPS. They serve areas that sometimes are too remote and not profitable for private companies, but everybody needs access to mail, so the gov't fills a gap.

 

[Googer]

Originally posted by: JS80
Apple has like a 15% profit margin. Why don't they vilify them?

Because liberal artsy farts love apple.