Insurance: The Hidden Driver of High US Healthcare Costs
Insurance is what makes U.S. health-care prices so high. The sheer profit margins of insurance companies are staggering. They extract a significant portion of every healthcare dollar spent, far exceeding the administrative costs of government programs like Medicare. This stark contrast undermines the frequent claim that private corporations are inherently more efficient than government.
Insurance is what makes U.S. health-care prices so high because the system incentivizes cost inflation. Regulations like the Affordable Care Act’s 80/20 rule, while intending to control costs, inadvertently contribute to the problem. The rule mandates that insurers spend at least 80% of premiums on healthcare; however, the remaining 20% – allocated for administrative costs, overhead, and marketing – also includes profits.… Continue reading
Matt Underwood