On Mon, Feb 16, 2009 at 1:37 PM, Gruss Gott <grussg...@gmail.com> wrote: > Insurance makes money off of investing premiums. Paying out is a cost > of doing business like any other business has to pay for computers, > buildings, etc.
Here's what you don't seem to get. Paying out is not only a cost of doing business, it *is* their business. That's what they exist for. If they didn't have to pay out we wouldn't need insurance companies. And because it is a cost of doing business they are motivated to try and reduce that cost. Which is quite reasonable. Except that the payouts are what we, as consumers, are expecting them to do for us. They can do it in some ways which are transparent to consumers, like negotiating lower rates with doctors, and they can (and do) do it in more obvious ways like denying claims and reducing coverage. Add that in with increased rates and you have a situation which just isn't beneficial to consumers. I'm not trying to demonize the insurance industry here. I'm just pointing out that a fundamental part of private insurance is doing less (payouts) for more (premiums) and that that isn't necessarily a good thing for something routine and important like healthcare. Not that complicated really. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:288721 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
