It’s true insurance companies need to take in adequate premiums in order to have the money the money to pay claims. And when done in balance, insurance is a great thing. Not all insurance in a scam, no doubting that.
But the current state of insurance, especially health insurance in the US, shows that these companies are making massive profits. How does this happen? Literally one way: They take in more premiums than they pay out in coverage. How? By either knowingly overcharging people or skirting out of paying covered claims through other means (such as baseless rejections).
That’s the problem with the entire insurance industry and why it must be properly regulated in any industry: It is a race to the bottom. The worse the insurer treats the people that buy insurance from them, the better the company does financially (charge a lot, pay out a little). Mix in the fact that (1) you cannot shop around at the time you need a claim and (2) the contracts are so intensive only a sophisticated legal team can interpret them, and it’s a recipe for disaster.
So you’re right that all insurance isn’t necessarily a scam. But if you can’t see that the US health insurance industry raking in profits shows serious dysfunction that could be considered a scam, it’s worth taking a second look.
Did someone say people should work for free? No where am I saying that. Massive profits are not necessary to cover overhead - expenses like overheard and salaries are paid for by revenue - what’s leftover is profit.
This thread is about whether the current US healthcare insurance industry is a scam or not. Scam means “a dishonest scheme” and insurance saying it’s going to provide healthcare coverage but actually just takes your money, doesn’t provide coverage, and only pays investors/executives could be considered a dishonest scheme by many.
Insurance companies have a natural tendency to become worse and worse over time. This is called the race to the bottom and is an incredibly well-known phenomena in insurance. Like monopolies, insurance is one of the rare situations where experts are in damn-near universal agreement that heavy regulation is necessary.
Right now, insurance companies are objectively very bad to the people they provide coverage for. This isn’t an opinion, this is a fact that’s easily verified and well understood. They are not being effectively regulated and as such, are racing to the bottom by providing absolutely terrible coverage while taking in massive premiums. This is not good for anyone and is not fixed by a free market in any way. You cannot effectively shop for insurance and their behavior is not rectified, unless prohibited by law (regulation).
United Healthcare pulled in $20 BILLION dollars in PROFIT in 2022. The ceo was given $24 million in compensation for that year. Denying claims because of scams? They can afford it.
It’s true insurance companies need to take in adequate premiums in order to have the money the money to pay claims. And when done in balance, insurance is a great thing. Not all insurance in a scam, no doubting that.
But the current state of insurance, especially health insurance in the US, shows that these companies are making massive profits. How does this happen? Literally one way: They take in more premiums than they pay out in coverage. How? By either knowingly overcharging people or skirting out of paying covered claims through other means (such as baseless rejections).
That’s the problem with the entire insurance industry and why it must be properly regulated in any industry: It is a race to the bottom. The worse the insurer treats the people that buy insurance from them, the better the company does financially (charge a lot, pay out a little). Mix in the fact that (1) you cannot shop around at the time you need a claim and (2) the contracts are so intensive only a sophisticated legal team can interpret them, and it’s a recipe for disaster.
So you’re right that all insurance isn’t necessarily a scam. But if you can’t see that the US health insurance industry raking in profits shows serious dysfunction that could be considered a scam, it’s worth taking a second look.
Removed by mod
Profit is revenue minus expenses
Did someone say people should work for free? No where am I saying that. Massive profits are not necessary to cover overhead - expenses like overheard and salaries are paid for by revenue - what’s leftover is profit.
This thread is about whether the current US healthcare insurance industry is a scam or not. Scam means “a dishonest scheme” and insurance saying it’s going to provide healthcare coverage but actually just takes your money, doesn’t provide coverage, and only pays investors/executives could be considered a dishonest scheme by many.
Insurance companies have a natural tendency to become worse and worse over time. This is called the race to the bottom and is an incredibly well-known phenomena in insurance. Like monopolies, insurance is one of the rare situations where experts are in damn-near universal agreement that heavy regulation is necessary.
Right now, insurance companies are objectively very bad to the people they provide coverage for. This isn’t an opinion, this is a fact that’s easily verified and well understood. They are not being effectively regulated and as such, are racing to the bottom by providing absolutely terrible coverage while taking in massive premiums. This is not good for anyone and is not fixed by a free market in any way. You cannot effectively shop for insurance and their behavior is not rectified, unless prohibited by law (regulation).
Removed by mod
United Healthcare pulled in $20 BILLION dollars in PROFIT in 2022. The ceo was given $24 million in compensation for that year. Denying claims because of scams? They can afford it.