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
Bold of you to assume they will actually pay out.
But in all seriousness. I have never had any major medical issues but I hear horror stories about how easy it is for insurance companies to deny your claims. For the ones they don’t deny I’m assuming there is a much smaller percentage of people that actually use their insurance as there is people paying premiums.
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