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by gdulli
226 days ago
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This is just cynical brain poisoning. My health insurance company isn't a person who cares about me, but that was never the deal. Their interests are aligned with mine. I'm in a blue state and can get the covid vaccine for free despite the federal level fuckery. That is because my insurer cares about profit, which means they act on the science of it without the culture wars and demagoguery. They know I'll be net healthier with the vaccine, therefore more profitable to them. |
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How do you square this with the fact that in the US the same profit-minded insurance company is limited to a fixed profit margin based on the amount of claims paid? By law, they need to set their rates such that they pay out at least 80% (or 85% for some markets) of the premiums they collect. Practically the only way for them to make more money in the long term is to pay out more in the short term.
Personally, I'm not sure how to answer this question. Over time, insurance companies benefit more when medical costs for their customers are higher, not when they are lower. Maybe it's that they actually think that keeping you alive and paying premiums longer is better for their bottom line than having you die quickly? But I don't think it's as simple as thinking that they benefit more if you don't get sick.
Link about allowable Medical Loss Ratios: https://www.cms.gov/marketplace/private-health-insurance/med...