On: 'United Healthcare' using DMCA against Luigi Mangi...

[lotsofpulp]

7+ different publicly listed companies and myriad mutual/non profit companies as well as self insured businesses all colluding to pay more so they can collect higher premiums?

And simultaneously, health insurers denying coverage left, right, and center to pay less so they can profit more? (See adjacent comment by blackeyeblitzar)

Make it make sense.

[dengxiaopeng → lotsofpulp]

There’s definitely precedent for public companies (even international ones!) colluding to artificially increase prices in a sector. Also a hilarious movie with Matt Damon.

https://en.m.wikipedia.org/wiki/Lysine_price-fixing_conspira...

https://en.m.wikipedia.org/wiki/The_Informant!

[lotsofpulp → dengxiaopeng]

Has there ever been precedent for companies to collude to increase the prices they pay their vendors?

I’m seeing a lot of big claims, but no evidence.

[hyeonwho4 → lotsofpulp]

My guess, stated without evidence:

1. Profits are capped as a percent of health care expenditures.

2. Employers (and people in the Marketplace) purchase insurance mostly based on price, which incentivizes lower prices.

3. (I'm guessing) Medicare advantage pays a flat annual rate to insurers.

4. Insurer denies large claims on Medicare Advantage accounts, turning annual rate directly to profits.

5. Insurer's denial of claims for other classes of policy lowers the price of the policy, increasing competitiveness.

6. Providers fight with insurance policy and fall back to billing patients, who can only pay pennies on the dollar.

7. The providers raise future rates to compensate for the costs and losses incurred by denials.

7. Increasing prices for all customers yields the desired absolute profits, without penalizing the company doing the denials.