They pay $200 for a service you think costs $800 and WILL cost you $800 if you buy it yourself.
You buy insurance based on the FULL cost of the procedure. If you could access $200 yourself you wouldn;t need insurance. You can self insure at these prices.
For the benefit of running the "self insurance" plan they are taking the difference between $200 and $800
Anyone else have a company and know what usual profit margins are? Your local pharmacy is lucky to pull off 35%.
This is 400% markup that a "retail" person pays over the insurance company.
It's not hard to make money when you buy at $200 and sell at $500-600-700 through an insurance policy.
This is how companies like AIG (anybody remember them) buy things like ski hills for their executives.
See www.stowe.com
Americas are building up the next generation of their royalty.
Companies with a mission in "health care" that mae 400% margins and buy ski hills for their executuves to use on "retreats".
Yup, that makes total sense, to a lobbyist, lawyer or other enemy of the public and democracy.
Crony capitalism, not true capitalism and market economy that people think of in the USA.
The insurance companies got a major windfall with Obamacare. That lobbying really worked out.
He could has just as easily allowed Medicare/Caid to negotiate prices and take over mre of the health care.
That wouldn;t give jobs to people that Obama really cares about. North east Liberal lawyers.