Thursday, March 2, 2017

Private health insurance will never work, and here's why

Businesses have to focus on making money.  That's not evil, that's their responsibility to their shareholders.  The simple math is that the more they charge in premiums, and the less they pay out in benefits, the more profit they make.  One cannot blame them for charging as much as they can and denying you as much coverage as they can get away with.  That's what the incentive is.  Health insurance should be socialized.

But not health CARE.  A Hospital makes more money when it does a better job of making people well.  It is incentivized to give excellent care, otherwise people will choose another hospital or clinic with a better reputation.

So when people talk about "socialized medicine" they are conflating two different things: who provides the care, and two pays for it.  Hospitals and doctors should be run for profit, by the market.  The government would make an utter mess of running hospitals (ask England), But health insurance should be done through taxation, where there is no profit motive.  Private health insurance cannot really work.