It’s more of a relationship that is partially adversarial and partially cooperative.
Healthcare expensive
Insurance company pools resources of a bunch of clients to offer a gamble: pay a little now while you don’t need medical attention and they will pay if you do, in return for overall charging more than they pay out (when all clients are added up)
Healthcare providers see insurance companies have extra money, want some, so jack up prices
Insurance companies still want profit but also like the higher prices giving even more incentive to buy insurance so just jack up rates and deny coverage where they can to save money rather than use their bargaining power to reduce prices.
Unlike single payer public option where the incentive is to both save money and maximize healthcare available, so it seeks a balance between keeping costs low enough to be affordable (at a societal level) while paying enough that doctors want to provide the services.
It’s more of a relationship that is partially adversarial and partially cooperative.
Unlike single payer public option where the incentive is to both save money and maximize healthcare available, so it seeks a balance between keeping costs low enough to be affordable (at a societal level) while paying enough that doctors want to provide the services.
Basically it goes
Hospital: Holy fuck insurance pays more than peons can, increase the prices! 2 chewable asprins are now 200 dollars.
Insurance: Hey, fuck you, you cunt. We’re not paying 200 dollars for 10 cents of chewable asprins. We’ll pay 50.
Hospital: Hey, fuck you, you got the money, give us 125.
Insurance: Go fuck your whore mother, You’re getting 100 and not a dollar more
Hospital: Fine, Deal.
Self Pay Patient: How am I supposed to afford to pay for the asprin when this is how it goes…