Balderdash. The insurance companies are making record profits now and just raised their rates far more than the rate of inflation. Care to present some proof that inflation is causing more than a similar increase in the cost of medical care?
So you are saying that the insurance companies spend $.95 of every dollar on paying doctors and hosipital bills for their policy holders?
While health insurance companies are greedy, unscrupulous, profit-skimming jerks who add a totally unnecessary layer of cost to healthcare, they are not the biggest problem with healthcare in the US. The big problem is the total disconnect between the people who sell medical care (doctors, hospitals, drug companies), the people who buy medical care (patients), and the people who pay for medical care (Medicare, health insurance companies, etc.)
Imagine that instead of buying individual items from a grocery store with your own money, you could go to a “Grocery Payment Company” and buy a card for say $165 a month. The GPC figures that the average person buys $150 worth of food a month, and they tack on an extra 10% for operating costs and profit. The GPC card would allow you to walk into your local grocery store and take as many groceries as you would like. The store would then send a bill to the GPC. The GPC would then take the money it received from you, subtract the cost of the food, then keep the rest.
You like it because it is convenient, the store likes it because it gets people buying the stuff on the shelves, and the GPC likes it because they make a profit. This works right up to the instant that GPC customers realize that they can take more than $150 worth of food from the shelves. And its not just quantity of food either, why have hamburger when you can have steak? Why have tuna when you can have lobster?
Now GPC card holders are grabbing $200 dollars worth or food a month. The store sends the bill to the GPC who suddenly need to raise rates to $220 a month if they want to keep their ten percent. The GPC card holders complain, but its still a good deal, they just make a note to “get their money’s worth” next time they are at the store, and the cycle begins again.
After a while, the GPC is looking to raise the rates to $330 a month and are worried that this will cause cardholders to leave. So they call up the grocery store and demand that GPC card holders get a discount. The store balks a bit, but the GPC points out that half the store business comes from GPC cardholders and if they stop buying, the store will lose money. The store agrees to the discount, and tries to make up for any lost revenue by raising the price of food for people who do not have a GPC card. If they get hungry, they have to buy food.
Things continue like this for a while, and soon the store is making money, the GPC is making a lot of money, but cardholders are paying $400 a month for a GPC card that used to cost $165, but can’t drop it because food is so expensive, while people without the GPC card are going hungry because a loaf of bread costs $15.
Does this sound completely bonkers to you? Does to me as well, but this is how the US healthcare system operates. We can all talk about Democrats and Republicans working or not working together, but it is all meaningless if the actual problem is not solved.
I knew that Obamacare was doomed as soon as I heard he had worked out a deal with the drug industry and insurace companies. Any attempt to actually fix US healthcare practically
requires that we screw these people over.