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
My dearest friend, the health insurance companies here in the USA are not only not close to bankruptcy, they are so flush with cash that they can manipulate our congress through lobbying to further enrich themselves. It is an extremely lucrative business.
In the USA, insurance is a complicated topic on purpose, to make it harder for consumers to get proper information and advocate for themselves. For anything above routine procedures, insurance agencies will often arbitrarily deny patients care (even after multiple hospitals/doctors request treatment) just in the hope that the insured person will give up. This happens quite often, so now that person paying 450 a month for insurance just ‘gave’ the insurance that money because they can’t spent the 2-3 days arguing with an insurance rep to get their stuff covered.
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