On: Health insurance companies are useless

[alistairSH]

They can raise premiums without paying more to hospitals.

No, they can't. Insurance companies are required to payout >80% of premiums on health care costs.[1]

1 - https://www.healthcare.gov/health-care-law-protections/rate-...

[phkahler → alistairSH]

Right, so they will encourage providers to raise prices.

[keenmaster → phkahler]

Bingo, and that is what’s happening. Insurance companies and providers both benefit from higher prices.

[phkahler → keenmaster]

That's what they call a win-win!

BTW a win-win is often a 3 player game and they don't mention how the 3rd one does...