There are lots of problems with our current approach to healthcare, but insurers aren’t charging you way more than the cost to counterparty on that contract should be.
A graph of the stocks for UnitedHealth, Elevance (formerly Anthem) and Cigna shows that they're all on the growth track for the last five years.
If a subscriber pays them what they do, and they don't have money to pay a claim declared medically necessary by a medical doctor, but do have the money to forward to a retirement fund, they are charging too much.
Most of the rest of the industrialized world seems to grasp this concept, and their people live longer.
Stock price ! profitability, but you're still correct. UnitedHealth's operations have churned out cash each of the last four years [1], as have Cigna [2] and Elevance [3]. Underwriting gains across the industry have been strong for years [4]. The only story I can think of where American health insurers lost money was Aetna with its underpriced ACA plans [5].
That said, whimsicalism is also partly right in that insurers aren't the cause of the unaffordability of American healthcare. They by and large pay out most of their premiums. (With some variance.)
[1] https://finance.yahoo.com/quote/UNH/cash-flow/
[2] https://finance.yahoo.com/quote/CI/cash-flow/
[3] https://finance.yahoo.com/quote/ELV/cash-flow/
[4] https://content.naic.org/sites/default/files/2021-Annual-Hea...
[5] https://spia.princeton.edu/news/why-private-health-insurers-...
> If a subscriber pays them what they do, and they don't have money to pay a claim declared medically necessary by a medical doctor, but do have the money to forward to a retirement fund, they are charging too much.
If it is only legal to lose money on providing insurance, nobody would do it.
> Most of the rest of the industrialized world seems to grasp this concept, and their people live longer.
I agree that there are problems with cost/performance in our healthcare market. I think it is largely due to overutilization & misallocation, combined with some poor genetic/cultural luck around opioids and obesity.
0: https://content.naic.org/sites/default/files/industry-analys...
You'd think the healthy working population wouldn't be that much of a burden to care for as well, but they have to go out of pocket and get insurance to provide for themselves after providing for everyone else.
There is a lot of graft going on for this to be the case. It may not be the fault of insurance companies but someone is stealing a great deal of money from the American people.
Now here's the million dollar question; are you aware of this obvious fact? Have you ever heard someone frame the socialized medicine debate in this way: "If we could be as efficient as the UK we could give you free healthcare AND cut your taxes!". If not, why not?
[0]https://www.statista.com/statistics/283221/per-capita-health...
[0]https://www.worldometers.info/demographics/life-expectancy/
well not every other nation, but i know what you mean.
other nations are much better at managing overutilization by denying care where it is not needed. the US insurance system shields people from cost and encourages overutilization due to a number of stupid policy choices (aka refusal to have 'death panels' like in Canada/UK but also refusal to do away with massive publicly subsidy for health expenditure).
for a personal story, my parents basically get free MRIs from the state for little reason whereas people I know have to pay an arm and a leg for MRIs because their insurance is worse. at minimum, we could at least also make my parents have to pay an arm and leg for useless MRIs and doctors would stop encouraging them or lose patients.