The insurance companies want it that way, though. That’s the sneaky bit.
Insurance companies are legally required to pay out 85% of all money they take in back to their insured. That leaves them with 15% to cover payroll and rent and profit and all the other shit.
So by having medical expenditures stupidly expensive, they get to charge higher premiums, which means the 15% they get to keep every year is a much larger amount of money. Why have 15% of $1,000,000 when you can have 15% of $100,000,000?
The insurance companies want it that way, though. That’s the sneaky bit.
Insurance companies are legally required to pay out 85% of all money they take in back to their insured. That leaves them with 15% to cover payroll and rent and profit and all the other shit.
So by having medical expenditures stupidly expensive, they get to charge higher premiums, which means the 15% they get to keep every year is a much larger amount of money. Why have 15% of $1,000,000 when you can have 15% of $100,000,000?
Well that’s fucked up. Jesus.
This is America.