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This is a dumb argument that is thrown around constantly.
"Hey if you think x is so easy why don't you do it"
Because different people are good at different things. Just because I'm a good CEO doesn't mean I'd be a good garbageman.
I agree. It is dumb.
But, the really stupid part of the question, "why don't you just start your own health insurance company and undercut their prices?" is because it's not realistic.
The Health Insurance industry is monopolized by just a few giant players nationwide.
That is also why the idea of "buying across state lines" that has been proposed by the republicans is nothing more than a smoke screen to make stupid people believe that they care about this problem and they're trying to help. Truth is, "buying across state lines" is the same as "keeping things the way they are"... The people making this suggestion know exactly what the truth is. The Health Insurance lobby is telling them exactly what to say to protect their interests.
This report was written in 2006 --long before Health Care Reform was being discussed. There is therefore no bias in the report because of our current debate.
This article is just a statement of facts about the Health Insurance industry.
Keep in mind that since 2006 there have been many more mergers.
Quote:
LOS ANGELES (MarketWatch) -- Consolidation among health insurers is creating near-monopolies in virtually all reaches of the U.S. - with the most dominant firms grabbing more market share by several percentage points a year - according to a study released Monday.
Data from the American Medical Association shows that in each of 43 states, a handful of top insurers have gained such a stronghold that their markets are considered "highly concentrated" under Department of Justice guidelines, often far exceeding the thresholds that trigger antitrust concerns.
The study also shows that in 166 of 294 metropolitan areas, or 56%, a single insurer controls more than half the business in health maintenance organization (HMO) and preferred provider networks (PPO) underwriting.
"This problem is widespread across the country and it needs to be looked at," said Dr. Jim Rohack, an AMA trustee and physician in Temple, Texas. "The choices that patients have now are more difficult."
How ironic. The greediness of a for-profit, private health insurer
Based on 2009 data, with revenue of 61.3 billion and net income of 2.49 billion you get a profit margin of 4%. By the same token, Coca-Cola was more greedy with a profit margin of 18%. Isn't it my right to have a Coke and a smile at a reasonable price?
Companies exist to make a profit (or break even in the case of the not for profit BCBS ones). Lose money and you will eventually go out of business. If Anthem/WellPoint goes out of business then millions go uninsured.
The thing I don't get is that everyone still confuses Health Insurance with Health Care. Doing away with 3rd party, for profit insurance companies would cut costs and it would not change the health care that we receive. Insurance companies do not provide care.
The goal of profits or at least not losing money creates efficiency otherwise you get some bloated thing that resembles our federal government.
Quote:
Originally Posted by World Citizen
Yep, they support paying AETNA's CEO more than $24,000,000 (twenty-four million) a year.
Running companies of this size requires talent. Talent costs money. I have an MBA will run AETNA for 1/2 that. Let's see how long it takes the board of directors to consider my offer.
The goal of profits or at least not losing money creates efficiency otherwise you get some bloated thing that resembles our federal government.
Running companies of this size requires talent. Talent costs money. I have an MBA will run AETNA for 1/2 that. Let's see how long it takes the board of directors to consider my offer.
The goal of profits sometimes creates efficiency.
But a lot of the time it creates shortcuts, poor products/services, fraud and outright criminality.
Maximizing profit is not a practice in morality, ethics or efficiency as far as I'm concerned.
Social Security is much more efficient than any privatized counterpart (according to administrative costs).
How about those new $20,000 Deductible policies???...
Quote:
Originally Posted by Robert_J
The goal of profits or at least not losing money creates efficiency otherwise you get some bloated thing that resembles our federal government.
Running companies of this size requires talent. Talent costs money. I have an MBA will run AETNA for 1/2 that. Let's see how long it takes the board of directors to consider my offer.
Well, to me their "talent" is just a side issue....
Our country's Health Care payment system should NOT be a third party, for profit company whose first concern is the bottom line and who is more concerned about stockholders than about their insured. Our country can't afford to continue paying 24,000,000 a year per person for their "talent"...
These companies are adding monumentally to the cost of our health care.
You want to talk about business and compare Health Insurance to Coca Cola??? Well, let me tell you what I think.
My ability to obtain health care is not in the same category as "having a coke and a smile".... not even close.
This is the only percentage that I care about....
In 4 years, at the present rate of increase... the cost of my health insurance will have doubled in premium.
You probably think that the new $20,000 deductible policies that they're now offering are another smart business move -- as well.
Those policies are just another way for health insurers to continue taking money from people every month without having to offer any service.
It really takes a lot of talentto figure out ways to do that, doesn't it?
You may have an MBA but I think you're pretty stupid.
Last edited by World Citizen; 03-08-2010 at 04:35 PM..
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say Monopoly....
