“Let us take the profit out of healthcare”, an oft-heard argument?

“Let us take the profit out of healthcare”, an oft-heard argument?

Questions by allergic to eggs : “Let us take the profit out of healthcare”, an oft-heard argument
I would like to hear your general thoughts on this mood, and any comments you may have about the following idea. What if the government forced all health insurers to use * Private Equity * instead of the current system where they are valued by Wall Street’s wild rides. Would this help to eliminate or reduce “the profit factor” from our national healthcare nightmare?? I realize my question may be completely wrong and thick. If yes, tell me kindly why. Thanks a bunch Best answer:

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I guess Im willing to try anything at this time.

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2 Replies to ““Let us take the profit out of healthcare”, an oft-heard argument?”

  1. Why, isn’t it a service that deserves to be rewarded.

    I do believe there should be some form of low cost group insurance that the average American could actually afford to purchase. Many companies have given up trying to provide medical insurance as a benefit. They can’t afford it either.

    A significant cost of healthcare is tied to the cost of malpractice insurance, which in turn drives up the rates. There’s the real nightmare.

  2. Forcing for-profit health insurance to seek financing privately would accomplish no useful goals. Private equity investors generally demand higher returns than investors in publicly traded stocks (in finance, this is referred to as “liquidity premium”).

    There’s more to the healthcare problem than just profits… The current system has two big problems, (1) misaligned incentives (insurance companies have a financial incentive to refuse treatment), and (2) high administrative costs (there are many relatively small bureaucracies, each with its own set of rules, so there is little economy of scale and a lot of portability problems). In countries where healthcare is financed publicly, neither problem exists; public servants have an incentive to approve treatments (or, rather, rubber-stamp doctors’ prescriptions; the more treatments they approve, the less the chance they will be laid off as excess workers), while administrative costs are kept low by virtue of there being a single large bureaucracy with one set of rules, so there is economy of scale and no portability problems.

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