What Do People Misunderstand About the Healthcare Industry?

What should everyone know about the health insurance industry that most people don't? originally appeared on Quora - the knowledge sharing network where compelling questions are answered by people with unique insights. Answer by Jennifer Fitzgerald, CEO and Co-Founder of PolicyGenius, on Quora. The health insurance industry is a prime target for consumer anger - and rightfully so in a lot of cases. Plans are confusing, billing errors are common, and premiums and deductibles seem to rise every year. But while many might think health insurance companies are to blame and are rolling in rich profit margins, that's not the case in many instances. Profit margins are relatively modest, relative to the rest of the insurance industry, and are generally lower now than before the passage of the Affordable Care Act (ACA). Many health insurance companies - especially new ones without large customer bases - lose money. The real culprit behind rising health insurance costs (which were also on the rise every year even before the ACA) is exorbitant spending. We spend ~$3 trillion a year - significantly more than the next biggest spenders - in a Frankenstein system that's semi-private, semi-public, with countervailing incentives that create undesirable outcomes across the board. For example, there's no real market-pricing for health care services; it's not a market transaction. It's a behind-the-scenes negotiation where the price is made up, depending on the payer - and an understood negoti...
Source: Healthy Living - The Huffington Post - Category: Consumer Health News Source Type: news