By in Rhode Island’s Future
Most recent news coverage of our dysfunctional American health care system fails to note the central problem: private health insurance companies.
Remember: the only reason they exist is to make money. They do not provide health care – despite what their expensive and unnecessary advertisements may imply.
They also consume about 30 cents of every dollar they receive on administrative costs. In contrast, Medicare consumes about 11 cents.
For the last 30 years, American health insurance premiums have increased by about 5 percent per year, roughly twice the rate that the average wage has increased.
The ( ) predicts that even with the ( ) and its restrictions on what insurance companies can charge, , 2025, the average employer-based family insurance plan will cost $24,500, roughly half the average family’s income.
No “market solution” will fix this because sick people are not profitable to insure. Why would there be “competition” to insure sick people?