Hi, I’m from the UK, the healthcare industry in the US has always confused me but one thing I can’t seem to get my head around is how the insurance companies don’t go bankrupt.
I understand how insurance companies work in the fact that they accurately calculate premiums and invest the money whilst not receiving more claims than premiums.
However, in the healthcare industry wouldn’t they receive many claims on a regular basis? Especially from people who require medication on a regular basis e.g Insulin
Furthermore, with hospitals bills and medication being so expensive will they not payout more in bills than they receive in premiums from people?
In: Economics
I’m a 25 y/o healthy male and I pay $450 for my insurance and my employer pays another $450. I haven’t seen a doctor all year. Basically there are literally hundreds of millions of people that are healthy but have to pay insurance because if I do have to go to the doc or go forbid the ER, I’d have to pay thousands of dollars. In fact I currently pay $450 monthly and I STILL HAVE TO PAY $500 to go to the ER.
So to answer your question, they don’t go broke because they charge a fuck ton more than they pay out since I also forgot to mention they haggle all providers to pay then as little as possible.
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