The democrat leftists/statists/communist/socialist types complain about “corporate greed” in health insurance industry. How can we quantify greed? Can we put a dollar amount on it? While, true, it is a human problem, human greed cannot be measured and it is NOT an economic indicator. Insurance companies compete with each other to offer comparable services/rate plans which tempers the price, therefore there is no evidence of greed. Market forces, if ALLOWED to work, will gravitate to a natural level. Given the current economic conditions, health insurance companies do REACT to government regulations. Government regulations affect economic behavior, like taxes do. Government and nothing but government affects the price of health insurance and cost of health care because they have such a heavy hand in it already. Too much regulation WILL affect cost and cost of insurance rates. Guess who rejects claims more often? MEDICARE. Not only that, the profit margins for the health insurance industry is not very high.
Health insurance industry profit margins
Guess who rejects the most claims? Medicare. Now, who do you think is “greedy”? Scroll to Metric 12
Maybe the late, great, Dr. Friedman can help us answer the question on greed…
About Dr. Friedman…