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Edited on Fri Feb-19-10 05:06 AM by krispos42
Health insurance is not health care. Health care is an inheirently innovative industry. Every year new procedures, medicines, treatments, equipment, and appliances are developed, improved, tested, prototyped, and mass-produced. I don't want government doing this. I want competative industries and universities doing this.
Health insurance isn't. Doctor sends bill to insurance company, insurance company pays bill.
In other words, it's what ancient Sumerians were doing 4,500 years ago with clay tablets and abacuses. THERE IS NO INNOVATION IN PAYING A BILL. Since there is little innovation risk, there should be little profit. Bic doesn't make double-digit profit margines on ball-point pens, do they?
There is innnovation in the health-insurance industry, though... new and creative ways to take in more money (higher premiums, fees, fines, etc.), pay out less money (higher co-pays, lifetime limits, retroactive policy cancellation, delaying tactics, byzantine paperwork), influence Congress ($$$$$$$), and manipulate public opinion (they wouldn't spend all that money on advertizing and propoganda if it didn't work, now would they???).
But the last innovation in bill-paying was electronic fund transfers. Wow, man. Stunning. And definitely worth 5% of GDP, right?
Every insurance company has a department that does risk pools. That means there is a ton of redundant work going on fine-tuning thousands of pools. The simplist pool is this: Every born or naturalized citizen from conception (or naturization) until death. Since EVERYBODY will need health care at at least one point in their lives, particularly in early and late years, EVERY pays into it and EVERYBODY takes out of it what is needed.
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