ibu guru
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There is a difference between "mutual" insurance companies and stock (or publicly held) insurance companies. The mutual insurance companies - like some life insurance companies - are "owned" by the policy holders.
All insurance companies have to make a profit - they have to invest premium income and make money so they have enough to pay claims and workers and overheads. Otherwise, premiums would be much, much higher than they are.
As for government-owned "insurance" programs, their overheads are so high, regulations so convoluted, and they do end up being overused, so costs keep increasing and service declines. No wonder Canadians come to the US for medical care! And the Brits have to wait 6 months or more for an emergency dental appointment.
On the other hand, when people had Blue Cross/Blue Shield, paid their bills in cash, then filed for reimbursement, costs were much lower. Costs are still very low where insurance is non-existent or operates on a reimbursement basis. In Hong Kong, for example, a medical or dental practice has the doctor/dentist, the nurse/hygenist, and a receptionist to answer the phone, make appointments, prepare bills, take payment & write receipt. Costs are a small fraction of US costs, where there is a team of billing/insurance processors doing paperwork, and the doctor/dentist has to wait at least 90 days for income while payrolls have to be met every week!
Why do you think over 1/2 million Americans go overseas for surgery/medical care every year? Costs are one-fifth the US price. |
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