>That is because those are the lowest prices possible. Insurance companies earn tiny low single digit profit margins. Almost every dollar they collect goes out as an expense for claims.
Just as a caveat to this, UnitedHealth Group posted a FY'23 (according to their FY2023 investor report) profit of 22.4 billion USD. Profit, not revenue. Now, that's about a 6% margin (FY'23 net rev was 371.6 billion), so you're right about single digit profit margins, but the sheer scale of UHG is insane. They have plenty of room to reduce profits, and shouldn't be held to the same rules that non-essential service providers are held to.
They can, and absolutely should reduce the costs they pass along to end-users, especially those who are healthy and don't make claims.
>They literally have to get their prices approved by the state government regulator. To suggest they are colluding to ratchet up the amount of money they spend on healthcare is unsubstantiated conspiracy theory.
Those same regulators are just as susceptible to bribes, kickbacks, "lobbying" and other favors as any other politician.
>It’s actually funny, because at the same time, there are complaints of insurance denying coverage and requiring prior authorizations. So which is it? Insurance companies inflating healthcare spend to increase their profit, or denying coverage to reduce healthcare spend to increase profit?
It's both.
>That must be because you are in a low population state, or a state where the regulators make it difficult for companies to compete. For example, New Jersey has many options for an individual to choose from:
I don't live in a low population state. I live in one of the 3 most populated states. My rates are still sky high, which is odd considering I: don't consume alcohol, exercise religiously, eat cleanly, don't have a family history of any major diseases or illnesses, don't have preexisting conditions, am under 35, don't take any medication, and most importantly, haven't made a claim against my insurance in over a decade - the last time I have had any medical procedure of any major sort was an X-ray when I broke my wrist as an undergrad in college, and I paid cash for that. So, why are my rates still over $250 a month? I'm self-employed running a small startup with myself and a sibling as the only employees. While I made good money in a previous job, $250 a month for basically nothing is a sinkhole that I would like to avoid, $3k a year isn't much in the grand scheme of things, but it's $3k I could use to pay rent, invest into my company, invest into the markets, or just use to live my life. It's a waste.
Re-read my comment. It answers all of your questions.
> So, why are my rates still over $250 a month?
> don't consume alcohol, exercise religiously, eat cleanly, don't have a family history of any major diseases or illnesses, don't have preexisting conditions, am under 35, don't take any medication, and most importantly, haven't made a claim against my insurance in over a decade
The Affordable Care Act requires insurance companies to ignore all of that, and underwrite only based on tobacco use status and age. Even the age is not fully underwritten as the max premium has to be only 3x the least premium (see age rating factor). This explicitly makes insurance premiums a tax.
> They have plenty of room to reduce profits
No, they don’t. UNH has 6% profit margins because they have a huge healthcare provider component, and healthcare itself is high margin. The insurance business is 2% profit margin. See Elevance, CVS, Cigna, Humana, Molina, and Centene profit margins. All at 2%.
> It's both.
Sorry, but that makes no sense.
By the way, government leaders and asset rich wealthy people love the fact that you blame insurance companies. They got way with implementing a huge tax on the young and working people, and evade blame. That’s not even the only one, see lack Medicare tax on capital gains, and the egregious Additional Medicare Tax.
The productivity of today’s working youth is being transferred to old and sick people in greater and greater amounts, dictated by legislators in Congress, elected by active old voters, not the bosses at insurance companies.
Just as a caveat to this, UnitedHealth Group posted a FY'23 (according to their FY2023 investor report) profit of 22.4 billion USD. Profit, not revenue. Now, that's about a 6% margin (FY'23 net rev was 371.6 billion), so you're right about single digit profit margins, but the sheer scale of UHG is insane. They have plenty of room to reduce profits, and shouldn't be held to the same rules that non-essential service providers are held to.
They can, and absolutely should reduce the costs they pass along to end-users, especially those who are healthy and don't make claims.
>They literally have to get their prices approved by the state government regulator. To suggest they are colluding to ratchet up the amount of money they spend on healthcare is unsubstantiated conspiracy theory.
Those same regulators are just as susceptible to bribes, kickbacks, "lobbying" and other favors as any other politician.
>It’s actually funny, because at the same time, there are complaints of insurance denying coverage and requiring prior authorizations. So which is it? Insurance companies inflating healthcare spend to increase their profit, or denying coverage to reduce healthcare spend to increase profit?
It's both.
>That must be because you are in a low population state, or a state where the regulators make it difficult for companies to compete. For example, New Jersey has many options for an individual to choose from:
I don't live in a low population state. I live in one of the 3 most populated states. My rates are still sky high, which is odd considering I: don't consume alcohol, exercise religiously, eat cleanly, don't have a family history of any major diseases or illnesses, don't have preexisting conditions, am under 35, don't take any medication, and most importantly, haven't made a claim against my insurance in over a decade - the last time I have had any medical procedure of any major sort was an X-ray when I broke my wrist as an undergrad in college, and I paid cash for that. So, why are my rates still over $250 a month? I'm self-employed running a small startup with myself and a sibling as the only employees. While I made good money in a previous job, $250 a month for basically nothing is a sinkhole that I would like to avoid, $3k a year isn't much in the grand scheme of things, but it's $3k I could use to pay rent, invest into my company, invest into the markets, or just use to live my life. It's a waste.