General Discussion

FBaggins

(28,612 posts)

52. Quite close... but one important error.

Tue Jan 29, 2019, 12:36 PM

Jan 2019

You've left out the power of competition.

The model that you're considering is absolutely a problem when we're talking about government-regulated monopolies (e.g., power companies in some states). There's little incentive to keep overall prices down because their revenue is restricted to a percentage of total costs. They can still improve profitability by more efficient administration of the service, but they're limited by a percentage of the top-line costs... so they have an incentive to let those rise.

That's why the government regulates the price they can charge.

This is case is different because the health insurance companies still have competitors. They can increase top-line revenue by taking business away from other insurance companies (which requires them to either improve service or decrease premiums compared to the competition- or both)... and they can also improve profitability by delivering the service more efficiently.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

106 replies

= new reply since forum marked as read

Highlight:

Who Wants To Cut Their Healthcare Costs By 20% Instantly [View all] PaulX2 Jan 2019 OP

The American Criminal Enterprise Healthcare System death panels are already in place. democratisphere Jan 2019 #1

Sorry. That's a misunderstanding of basic economics. FBaggins Jan 2019 #2

agreed NewJeffCT Jan 2019 #3

Explains why healthcare costs increase exponentially and are approaching democratisphere Jan 2019 #4

Increased cost of care, population growth, and an aging population FBaggins Jan 2019 #8

It's Obesity And Crap Diets With Little Exercise PaulX2 Jan 2019 #10

"It's how we roll." kag Jan 2019 #38

I see what you did there! Canoe52 Jan 2019 #51

that's definitely a big part of it NJCher Jan 2019 #80

Not true. 20% of $100,000.00 and 20% of $1,000,000.00 are HUGELY DIFFERENT. democratisphere Jan 2019 #11

Sorry, that's still backwards FBaggins Jan 2019 #14

WHO Ranks USA 34th For Overall Health Care Frodo PaulX2 Jan 2019 #26

Not for health care quality FBaggins Jan 2019 #35

There is nothing exceptional about the American Healthcare System. democratisphere Jan 2019 #56

Nothing? FBaggins Jan 2019 #58

He/she is correct about the quality if you have the money or insurance. EX500rider Jan 2019 #71

What does Cuban healthcare have to do with the best healthcare available in the world. democratisphere Jan 2019 #72

I said Cuba etc.. EX500rider Jan 2019 #73

Just because there are 93 Nobel Awardees in RESEARCH Physiology and Medicine, democratisphere Jan 2019 #77

And 6 of the worlds top 10 medical schools are also in the US. EX500rider Jan 2019 #78

Still has absolutely nothing to do with the reality of the lousy quality of care democratisphere Jan 2019 #79

Did you see the story on the billionaire couple NJCher Jan 2019 #81

I see what you mean. violetpastille Jan 2019 #31

Nothing is backwards except your concept of math. Sorry. democratisphere Jan 2019 #39

See #35 above FBaggins Jan 2019 #43

actually skydiving is really safe... druidity33 Jan 2019 #67

And upcoding. LanternWaste Jan 2019 #48

We have lower outcomes and higher costs than Canada because of how the 80% is spent grantcart Jan 2019 #47

Only in part. For profit health insurance enables price gouging KPN Jan 2019 #103

We know, but Medicare does the same for 3%, and there's 0 profit because there's no shareholders ... mr_lebowski Jan 2019 #55

I think some also do not realize that Medicare is not free. People pay monthly premiums, and some still_one Jan 2019 #5

And that is after you prepay into Medicare for 40 yrs. MichMan Jan 2019 #6

Of course you have to pay into Medicare throughout your life. pangaia Jan 2019 #15

Understood, but to think you could cover everyone from day one... MichMan Jan 2019 #32

Here ya go. This explains it much more clearly than I can. pangaia Jan 2019 #33

"the money to pay for Medicare for All has to be shown where it is coming from" Yavin4 Jan 2019 #7

That may be the way to do it, but it needs to be spelled out, and the most difficult part is it still_one Jan 2019 #21

Tax Carbs PaulX2 Jan 2019 #27

That won't do it Paul. However, in order to work, it MUST be mandatory. In other words, everyone still_one Jan 2019 #34

and rice and potatoes? DonCoquixote Jan 2019 #69

I eat carbs all day. Codeine Jan 2019 #96

And you pay 20% of all expenses as your co-pay. Medicare for all is NOT free healthcare Farmer-Rick Jan 2019 #23

yup, that is what Medigap(supplemental), and Advantage plans do. On a relative basis it is a lot still_one Jan 2019 #29

does that extend to other items in the U.S. budget? NJCher Jan 2019 #82

Hidden in all of this is that the Federal Government has subcontracted out.... George II Jan 2019 #20

That makes no sense or am I misunderstanding what you are saying Farmer-Rick Jan 2019 #36

you are so right NJCher Jan 2019 #83

I'm going to argue the point differently. Think about this... Pobeka Jan 2019 #50

Quite close... but one important error. FBaggins Jan 2019 #52

AFAIK, health care companies are not bound by antitrust. Pobeka Jan 2019 #59

this billionaire couple will tell you NJCher Jan 2019 #84

Did you link to the wrong video? FBaggins Jan 2019 #85

Yes, it does support my position NJCher Jan 2019 #91

Oh, I can't wait to see this FBaggins Jan 2019 #92

terrific NJCher Jan 2019 #94

Thank goodness we weren't holding our breaths, eh? FBaggins Jan 2019 #95

what you're asking for is for me to do your work for you NJCher Jan 2019 #99

Nope FBaggins Jan 2019 #100

I don't see what you're referring to NJCher Feb 2019 #104

Now you can't even be bothered to read your own posts or the context in which they were made? FBaggins Feb 2019 #105

I will be reviewing this NJCher Feb 2019 #106

Medicare has a 2-3% overhead. And the insurance on the exchange has been limited to 20%. pnwmom Jan 2019 #53

Medicare has a 2% administrative cost vs 17% claimed by insurance. sfwriter Jan 2019 #54

That's never really been true FBaggins Jan 2019 #57

Not really. The 2% is just the overhead of getting the money from Medicare to the private insurer Recursion Jan 2019 #88

My wife had a uterine biopsy. 5 minute procedure. Insurance paid $4900.00. It was labeled as surgery Pepsidog Jan 2019 #9

Yes. For profit insurance has done a horrible job at cost control TexasBushwhacker Jan 2019 #12

Incredible. I guess they bill that way cause some insurance just cuts the check. Pepsidog Jan 2019 #18

Even with the ACA, it benefits insurance to keep costs high TexasBushwhacker Jan 2019 #25

True Pepsidog Jan 2019 #62

I believe that when ever a medical procedure is needed ... aggiesal Jan 2019 #13

I'm really lucky to live in western NYS pangaia Jan 2019 #17

Out of curiosity, what is your monthly Medicare Advantage premium? I have US Healthcare, and its... George II Jan 2019 #22

In the last 10 years it has varied between zero and $85. pangaia Jan 2019 #28

Before I retired I was very worried about what my supplemental insurance would cost.... George II Jan 2019 #66

There is one of the many keys to Universal Healthcare. GulfCoast66 Jan 2019 #75

Yes they do Pepsidog Jan 2019 #19

Something else must have been involved there FBaggins Jan 2019 #41

No other country wants to switch their medical plan area51 Jan 2019 #16

If we cut out the insurance companies, who would administer "Medicare for All"? It's a misnomer... George II Jan 2019 #24

How do other countries do it? TexasBushwhacker Jan 2019 #30

Germany makes the most sense exboyfil Jan 2019 #40

I respectfully disagree. The French system is better GulfCoast66 Jan 2019 #74

Thanks for the suggestion exboyfil Jan 2019 #87

There are no countries with a version of "Medicare for All" that has as large or diverse... George II Jan 2019 #63

We also have far more income inequality than Germany has TexasBushwhacker Jan 2019 #65

It's not a misnomer it is a fact Farmer-Rick Jan 2019 #42

Do you realize that you just undercut the OP's position? FBaggins Jan 2019 #45

Reduced staffing not fooled Jan 2019 #44

That's one of the biggest reasons for the Federal government subcontracting the administration.... George II Jan 2019 #64

Like idea of single payer, but we really aren't paying them 20% off the top BECAUSE Hoyt Jan 2019 #37

So many fallacies grantcart Jan 2019 #46

Sounding sophisticated. Adding confusion. Typical corporate strategy. TryLogic Jan 2019 #68

Or perhaps facts undercutting a sophomoric explanation of the challenge. GulfCoast66 Jan 2019 #76

Jesus. We get enough of that from the Trump brigade Recursion Jan 2019 #89

Yes, of course. The answer is more yelling Codeine Jan 2019 #97

Without offering anything but thanks to all, this is an excellent thread. yonder Jan 2019 #49

#1 Reason Favoring Medicare-For-All corbettkroehler Jan 2019 #60

America isn't "stupid" whathehell Jan 2019 #61

Single payer will certainly be more efficient, but it could also bankrupt many providers. MadDAsHell Jan 2019 #70

We've already looked out for for-profit healthcare to our detriment. If they're good, the rich will ancianita Jan 2019 #86

I will never understand why so many "good democrats" hueymahl Jan 2019 #90

I don't think that's a fair representation Codeine Jan 2019 #98

Insurance companies - the REAL death panels DirtEdonE Jan 2019 #93

People who administer health plans can be well paid Turbineguy Jan 2019 #101

More like 29% Strelnikov_ Jan 2019 #102