Mark Perry over at Carpe Diem makes it known that insurance companies are making an average of 3.3% profit. Removing that 3.3% equates to roughly $150-250 in personal/family rate savings per policy? Removing all insurance profit is not a panacea.
Also, as a matter of point we should consider that insurance is insurance, not a universal payment system for which everyone always benefits (paying less in premiums than they consume in medical services).
An insurance company is essentially betting individuals. The company bets that premiums will be larger than the cost of healthcare services rendered. Why should a company "bet" a sick individual that $300, $500, or more a month will cover their expenses for, let's say, dialysis. That company is not evil for not charging $300 a month when it knows it'll be paying out $1000-$2000 a month.
The country needs social safety nets, and for catastrophic care I fully support an expansion of medicaid. We must pay for it though. Increase taxes (and not just on the evil rich).
Healthcare is expensive not only because medical technology marches forward providing services not imagined 20-30 years ago, but because reimbursement happens through a 3rd party (whose financial interest is at odds with both provider and consumer of care). When this is coupled with the fact that individuals could care less how much a doctor's visit "costs" because, well "insurance" covers it. How much does a physical cost? Doesn't matter, I'll pay my co-pay and it'll get done. Should I bring my mildly feverish child to the ER? I'll pay my co-pay and the rest will be insurance. People must be aware and make their health care decisions based on efficiency, cost, and their own personal situation. Again, I support an expansion of medicaid, but make the cost 100% known and up-front with an increase in taxes.
Doctor's, hospitals, and individuals are not awash with money. Insurance companies make billions because of the sheer volume of care that they oversee. To weed out health fraud, rules are thought up and sometimes seem draconian. So the evil billions they make, and the evil decisions they make, are made as a matter of fiduciary responsibility, of which you mentioned.
John Stossel on health care costs.
Another take on breaking down how the insurance companies are at odds with both providers and consumers.
This last link is super quick to distill the information presented...
Sorry for the book. I hate seeing individuals or groups of individuals demonized for making choices which are in their own self-interest.
