149 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

What the other answers fail to address is a fundamental flaw in capitalism for certain types of business: Your average human places their continued survival above all other priorities. This concept ...
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107 votes
Accepted

Why hasn't competition between health insurance providers led to lower prices for consumers?

How free is the US health care market really? The reason that free competition has not made health care in the US cheaper is that free competition has in fact been severely restricted for decades. As ...
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105 votes

What, if any, are the benefits of tying health insurance to employment (as in the US) over other systems?

First, let's be clear: employers do not offer benefits like health insurance naturally. If we go back to the early stages of industrialization, employers merely offered salaries (often paltry salaries,...
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52 votes

What, if any, are the benefits of tying health insurance to employment (as in the US) over other systems?

This is a relic of the World War II--the government mandated wage controls so businesses competed on benefits. Health insurance was one of those benefits. Until the ACA the government never made ...
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46 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

I place the blame on the fees charged by drug makers, doctors, nurses, and hospitals. The market for healthcare does not have the "supply and demand" dynamic. Patients just have to "pay-up". After a ...
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41 votes

How and why would (Bernie Sanders’) Medicare for All abolish private health insurance in the US?

Jeff Lambert has found the Sanders proposal. SEC. 107. PROHIBITION AGAINST DUPLICATING COVERAGE. (a) IN GENERAL.—Beginning on the effective date described in section 106(a), it shall be unlawful for— ...
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24 votes
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Are there countries where being non-vaccinated disqualifies you from "standard" health insurance coverage (for that particular disease)?

I don’t know of any countries other than Singapore that have taken this step yet, but in the Indian state of Kerala, the Chief Minister announced a similar policy at the end of November: After a ...
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24 votes

Are there countries where being non-vaccinated disqualifies you from "standard" health insurance coverage (for that particular disease)?

In Germany (14 out of 16 states), voluntarily unvaccinated people who are quarantined as a contact person are not paid money in lieu of wages if they cannot go to work, while vaccinacted or ...
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19 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

I think you're looking at this the wrong way. Many factors impact prices. Competition doesn't necessarily mean that prices will be lower year-over-year. Competition means that prices will be lower ...
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19 votes

What, if any, are the benefits of tying health insurance to employment (as in the US) over other systems?

You really have two separate questions here: Why does the US not have socialized medicine? This has been fairly extensively discussed, on StackExchange and elsewhere, so I see no point in re-hashing ...
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14 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

Because that's not how insurance works Insurance is about risk management. When private companies enter this arena, their number one goal is to make a profit. They have to figure out how much a ...
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14 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

removing the ability of private health insurance companies to compete will give rise to a natural monopoly in the industry, leading to an overall increased cost to the taxpayer. Emphasis mine - and ...
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14 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

In my experience, when the affordable care act came out the first year there were quite a few choices in my city so you could shop and compare. By the second year there were fewer choices and then I ...
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14 votes

What, if any, are the benefits of tying health insurance to employment (as in the US) over other systems?

The U.S. federal government subsidizes healthcare benefits by making them tax-exempt. Firms can therefore offer higher overall compensation by shifting part of that compensation into health benefits. ...
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  • 161
14 votes

Are there countries where being non-vaccinated disqualifies you from "standard" health insurance coverage (for that particular disease)?

In France non-vaccinated adults have to pay for their Covid tests (except if they have a medical reason). Many activities legally require either a proof of vaccination or a recent negative test, so ...
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  • 14.9k
12 votes

How and why would (Bernie Sanders’) Medicare for All abolish private health insurance in the US?

To explain the hypothetical "why": mixed public-private healthcare systems are almost always worse than ones which are closer to purely public. Countries which have switched to allow private ...
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11 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

Let me answer the question at the end, which is really simple. How do existing nationalized healthcare systems seek to mitigate this issue? In most countries where healthcare is universal and free-...
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  • 12.1k
11 votes

What, if any, are the benefits of tying health insurance to employment (as in the US) over other systems?

There probably are few actual benefits, but a number of reasons for it: Historical (+1 to Loren's answer) and customary. "This is how we've always done it and we're not like those darn socialists ...
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11 votes

Are there countries where being non-vaccinated disqualifies you from "standard" health insurance coverage (for that particular disease)?

In US law, there is a provision that insurers are not required to pay claims on easily prevented accidents or injuries where simple prudent measures were not taken to avoid the claim. For example, it ...
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10 votes

How and why would (Bernie Sanders’) Medicare for All abolish private health insurance in the US?

The generic description of universal single payer national health care is as follows: Define what the national health care plan covers Enroll everyone in that national health care plan There are a ...
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  • 12.8k
9 votes

How and why would (Bernie Sanders’) Medicare for All abolish private health insurance in the US?

Other answers are getting into the nitty-gritty of policy law, but it sounds like you're looking for the basic principles that govern this decision. Separate-but-equal doesn't work. From around ...
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9 votes
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What countries are on the United States' "most favored nations" list?

The report published by the Centers for Medicare & Medicaid Services (CMS) on the interim final rule with comment period (IFC) setting out the Most Favored Nation Model states on page 68 that the ...
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8 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

The premiums are there to cover the cost of drugs, hospital prescription drugs, reagents and lab testing compounds, and hospital machinery, mainly. US pharma companies invest a great amount of ...
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8 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

Maybe I read too fast, but I didn’t see this. After working ten years for a large non-profit health care system, much of that in the financial department, it is my unproven opinion that part of it is ...
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7 votes

Why do Americans (US) want to keep their employee-based healthcare insurance?

The way health insurance is payed for by employers creates a massive tax loophole, the employee does not pay tax on the employer portion of their insurance, and the employer can deduct it as an ...
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7 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

The most logical thing is supply and demand. Healthcare has a high demand due to it being pretty much mandatory due to the consequences of nothing it being disastrous. This is contrary to many other ...
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  • 1,635
7 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

Because health insurance is intentionally designed to subvert market forces. Competition of the sort that tends to lower prices requires meaningful consumer choices and accurate consumer knowledge. ...
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6 votes

Are Medicare-for-all type plans expected to result in increased wages?

The medicare-for-all still needs to be paid for and if you look at European countries with universal healthcare for reference, this will take a significant proportion of wages (for example around 16% ...
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  • 2,752
5 votes

Why hasn't competition between health insurance providers led to lower prices for consumers?

Some parts that has not been mentioned yet. Part of the evil cycle is that the "price" to become a doctor in the US is much higher than elsewhere. Then there is the lack of transparency. You cannot ...
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5 votes

Why do Americans (US) want to keep their employee-based healthcare insurance?

Americans with health insurance are not so much in love with their coverage, as relieved that they have coverage at all. Inequality is so internalized that the public expects some sectors to have much ...
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