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Originally Posted by Marius567  health insurance companies do not have to cut there rates. |
Hey, I got an idea. They can keep their rates exactly the way they are, but make them pay the full amount of their customers' medical bills rather than getting the 70% or so taken off the top because they're an insurance company. I've seen the before and after transformation on hospital bills, it's ludicrous.
Basically it works like this, the insurance company approaches the hospital and offers to be a creditor to pay the bills of people, because it makes it much easier for the hospital to get paid promptly, they accept, because it is a great service for themselves. The catch? So the insurance companies can make more money off of it, they negotiate a discount for their services. The hospitals accept and raise their prices in response, so the discounted payments they receive are more in line with their desired profit margin. The insurance companies need more money to pay for this so they raise premiums. The prices get too high for people to easily pay without insurance, so more people get it. This means more payments to the hospital are discounted, so they raise prices. In return the insurance companies raise premiums....
It's a vicious cycle there. Solution: Make the insurance companies pay the same as everyone else. The inflation in healthcare prices is because it's being raised to lessen the blow of insurance company discounts. Remove the discounts, the inflation falls back in line with economic standards. It may even be a bit more expensive to get insurance for awhile but the system would become sustainable.
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