Tuesday, September 1, 2009

The Insurance Industry & Medicare

Do you notice that the insurance industry does not lobby heavily for the elimination of Medicare?

My previous post outlined how insurance works. The insurance industry needs more payers than collectors. The less collectors they have, the more profit they make. Why would they be interested in taking on guaranteed collectors? People over 65 are guaranteed to collect in a relatively short time! Plus, it is currently reported that the end-of-life costs (your stay in the intensive care unit at the end) tends to be the most expensive hospital stay you will ever have. Why not hand those people over to the taxpayers?

So, the insurance industry gets billions in profit by insuring relatively healthy people and the taxpayers get ever more red ink from insuring people guaranteed to cost more. Sounds, yet again, like privatized profit - socialized risk.

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