Health insurance

[Copprhed]

If medical costs to insurance companies are so high, why and how are they making BILLIONS of dollars a QUARTER in profits? The medical industry has immunized itself from the law of supply and demand. There are no real price variances between companies for the same policy, so you can't drop one for a cheaper company and get the same coverage. There is no incentive for insurance companies or medical practitioners to make their prices competitive, as there's no competition. They name their prices and we get the shaft. I say charge them for monopolistic practices, and price fixing. the RICO Act also comes to mind.....

[zack1234]

How dare you coppr

Why would they do such a thing

[Nwbie]

This is 100% not the fault of the insurance company that is now forced to "insure" a high-risk individual that they normally wouldn't write a policy for.  (and really "insure" is a term that should be used loosely when you're talking about a guaranteed loss)

You are not really that naive to think that we don't all pay for the uninsured already are you?

The whole point of this healthcare law is to get those who normally do not get insurance, to start getting pre-emptive care. Which, theoretically should reduce costs in the long run for those who are in the medicare / medicaid rut. Less cost to you- the taxpayer - theoretically.

 Insurance companies don't want it because it messes with the profit models- which are based on not insuring people who might or actually most likely will get sick, but playing the house odds of collecting money from those who most likely will not get catastrophically sick for many years. Thus the annuities their house players ....err... accountants / lawyers.. invest in for 20 to 30 year payouts will continue to make them profitable,.... enormously profitable.
It is not a concern of the insurance companies to make sure that those who can afford good insurance coverage continue to be their main concern. It is - how can we avoid having to provide good coverage and not have to lose all those enormously profitable returns on those good people who give us a monthly check for which a larger percentage are making deductible payments which practically covers the whole cost already.
No one talks about how all this - in theory - should reduce medicare or loss preventative measures for large city or rural medical facilities.  Lot of thumping by those whose campaigns are financed by the insurance companies, but very few people who understand the whole motives behind those who are for and those who are against the whole health insurance packages. There will problems with the system, of course there will be. But I like the idea of not having poor people needing medical care in their early 50's to mid 60's if at least average medical attention was provided early for them. I think that it will make it a better society for my grandchildren.

H@#@ isn't that the point?

[rogwar]

If medical costs to insurance companies are so high, why and how are they making BILLIONS of dollars a QUARTER in profits? The medical industry has immunized itself from the law of supply and demand. There are no real price variances between companies for the same policy, so you can't drop one for a cheaper company and get the same coverage. There is no incentive for insurance companies or medical practitioners to make their prices competitive, as there's no competition. They name their prices and we get the shaft. I say charge them for monopolistic practices, and price fixing. the RICO Act also comes to mind.....

Just went and looked at some of the major health insurance company's annual financial reports and current stock/investment data. Yeah they make money but their profitability is not anything remarkable. For the most part the industry's financial performance is lackluster. In fact I would not have a burning desire to go buy any of their stock based on what I saw.

Here is AETNA for example.

http://www.aetna.com/investors-aetna/

[Delirium]

You are not really that naive to think that we don't all pay for the uninsured already are you?

Skuzzy will probably strike this down, but all the States I've looked into already have some kind of public insurance program that brokers rates with the hospitals within its borders. In Connecticut it is called "Husky" and covers children and low income families that are determined to have need.

The biggest fear the health insurance companies have is destabilization. The rapid increase in insurance costs most of us suffered over the past few years was designed to help insulate the insurance companies from uncertainty (in addition to rising healthcare costs in general).

[Brooke]

Cost went up about 20%.  Deductibles went up.

This has been exactly the wrong way to handle it.  The right way is more market competition, not less of it.

[zack1234]

Complete gibberish

The REASON health care insurance increased was because they cannot invest your payments on the stock market anymore and get a good return

Poor  people are to blame

Its Putin as well to blame

[Vudak]

You are not really that naive to think that we don't all pay for the uninsured already are you?

I think the big disconnect here is some of you are talking about health care while I'm talking about insurance.  They aren't one in the same.  Insurance is a risk management tool.  A national health care system is a society's decision that they want people to be able to go to the doctor.  I'm not going to comment on whether that is good or bad.  That is political and that is not the point of this thread.

My point is that if we are expecting an insurance company to suddenly "insure" a large class of people who are very high or guaranteed risks, then rates will tend to increase.  To take the wildest example in an attempt to be clear: A health insurance company being forced to write a new policy for a person who is terminally ill with cancer, and to pay for treatment of that pre-existent condition, is the same thing as an auto insurance company being forced to write a new policy for, and to pay for the repair of, a vehicle which has already been damaged in an accident.

That situation folks, is not insuring risk, but financing certainty.

A few other high level points while we're on the topic:

1. An insurance company's profit is typically derived from investment income that they earn on premiums invested before a loss.  These investments fuel our economy and help businesses and it is a good thing that they should continue, but if an insurer must set aside adequate reserves to pay for a higher presumed future loss, investment decreases.

2. States tend to regulate insurance, and insurance rates.  Many states require an insurer to submit their proposed rates for approval before they can start using it.  Others allow them to make adjustments within certain boundaries to account for market changes (for example you might be able to raise or lower them by 10%).  There are also other arrangements.  So not to get political but if you're having an issue with how much it's costing you, why not call your local insurance commissioner?  Your own state might be the one setting the amount.

Don't get me wrong there are a ton of problems with insurance...  But this thread is evidence there are a ton of misconceptions too.

[pembquist]

Hey, not to call the kettle black, ( I went off topic about gouging myself,) but can we reel it back in and just keep it to what your insurance rates are doing now as compared to before like the original poster asked?

[zack1234]

just an fyi......i ain't exactly rich. if i were, i wouldn't be working 6-7 days a week.......

Its poor peoples fault you have to work 6-7 days a week, it was on the news

Making money out of peoples mis fortune

[FLOOB]

Ever check the healthcare.gov site? All it is basically is a list of insurance providers and it give's you the option of using your tax refund to pay. So basically it's nothing that doesn't already exist. I also noticed that all of the rates were MUCH high than any insurance I've ever had via an employer.

[CAP1]

Ever check the healthcare.gov site? All it is basically is a list of insurance providers and it give's you the option of using your tax refund to pay. So basically it's nothing that doesn't already exist. I also noticed that all of the rates were MUCH high than any insurance I've ever had via an employer.

it is one big thing that didn't used to exist.

[FLOOB]

it is one big thing that didn't used to exist.

How so?

[Slate]

How so?

   Servitude

[rpm]

Ever check the healthcare.gov site? All it is basically is a list of insurance providers and it give's you the option of using your tax refund to pay. So basically it's nothing that doesn't already exist. I also noticed that all of the rates were MUCH high than any insurance I've ever had via an employer.

Individual rates are always higher than group rates, plus your employer usually pays part of your premium.