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
Most people don’t have chronic health conditions that require then to go to the doctor constantly.
I’m 54. I’ve had my tonsils taken out. I had surgery for testicular torsion, and I had hernia surgery. That’s it. The amount i, or my employer’s, has paid into insurance is far more than what those procedures have cost, even with the expensive services.
Any other doctor’s visits are insignificant compared to those costs, especially with co-pays
Just like any other insurance, they take in more than they pay out. Plus, they invest the money they take in, so it’s earning money itself.
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