So why do they need that outrageous markup? (CEO salaries are completely negligible by comparison, and insurer profits are also relatively inconsequential.) It's because their business model is broken they MUST each spend huge amounts on armies of "denial clerks" to deny treatments, and thereby also impose costs on providers fighting back for payments. It is the inevitable consequence of having multiple competing pools of insured policy holders. Any cut in treatment denials results in a larger rise in treatment costs ("medical losses"), inducing a rise in prices, and so risks losing out to the competition.
The resultant wasted healthco gross margins and provider administrative expense adds up to a dead loss of more than $3 trillion over ten years. That's $3 trillion!Which is why health insurance MUST be socialized, if we are to have insured health coverage at all
And why do private insurers so much need life support from the federal government? Because they face a descending spiral of declining enrolment, which has been decliningfor more than 10 years and is now accelerating downward, driven ever lower by higher and higher prices.
It would be great to see the renowned Paul Krugman address these questions. But he doesn't.
The last best chance for real "healthcare reform" is the new Medicare Option. Open up Medicare so it can be purchased by anyone at cost. Help make it happen! Call your representatives in Congress TODAY!
To find out more of what Obama's "healthcare reform" is really all about, see "Pity the poor chief lobbyist for the health insurance companies" here at http://www.opednews.com/articles/Pity-the-poor-chief-lobbyi-by-Tom-Hagan-100315-52.htmlor at http://whatsnotso.blogs.com
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