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Why is health care considered a for-profit enterprise?
As insurance companies push their profit margin to 20% ( that means the money we pay for premiums is going to share holders instead of to our health care providers) premiums go up while coverage goes down. Less than 15 years ago, the profit margins for insurance companies was less than 5%, now it's close to 20%,
Health care should not produce a profit any more than police or fire departments. It is a necessary service that no one not involved in the actual delivery of care should profit from.
7 Answers
- Hello KittyLv 61 decade agoFavorite Answer
that is because doctors need to make a profit, shareholders need to make a profit, and
insurance companies don't want to loose any more money to pre-exsiting conditions or any sick people or PREGNANT women.
it's a shame how much money you pay per month, just to either pay a deductible or to be covered up to 60-85% for an average insurance company.
plus the high cost increase EVERY YEAR....insane...you wonder why so many people go to the ER because they have no insurance.
- PfoLv 71 decade ago
If you take the profits out of health care, all the investors will pull out, leading to a collapse of the health insurance industry. That's not progress.
Companies should be allowed to make profits, and nice ones at that, when they do a good job. When they don't compete, they can simply raise rates so they make more profits. If they compete, they must offer the most service at the lowest price, this will benefit everyone.
Having the government foot the bill at a loss isn't an ideal solution either. Hospitals could then raise costs, increasing the loss the government (and eventually taxpayers) take for providing these services. And we do see this in police and fire departments, and in road work departments, where they do what they can to increase their budgets.
- Anonymous1 decade ago
Ronald Reagan, Milton Friedman, Alan Greenspan, etc. decided that profit motives would reduce costs. And that non profit organizations had no incentive to reduce costs. And corporate profits were stagnating.
And the insurance companies have been fighting government insurance since 1948.
- Anonymous1 decade ago
I think they've paid so many PAC contributions to politicians to protect their interests, they feel entitled to the system that bleeds us dry while they rake in the profits. HMO's made 4 billion dollars in California last year alone. They don't want to lose that money, and corrupt politicians don't want to lose the perks they get from HMO's.
I don't have a problem paying a doctor for my healthcare. My problem is with HMO's. 30% of my healthcare costs are actually going to HMO profits, not healthcare. Doctors only get about 20%. To me, that 30% to the middleman who is driving up the costs is a complete waste.
Source(s): PAC Contributions over the years. They spend a fortune making sure their interests are protected, not because it is right, but because they can. http://www.citizen.org/congress/campaign/special_i... http://www.opensecrets.org/industries/indus.php?in... - How do you think about the answers? You can sign in to vote the answer.
- ?Lv 61 decade ago
I don't know about non profit. Doctors and specialists deserve what they do, but not SO much. United health care had a 155% profit over last year, and 14,000 people are losing their health care every day. That's why the AMA supports health care reform.
- Anonymous1 decade ago
Profit is supposed to generate efficiency. It's usually a good mechanism to improve the level of service.
- nedeauLv 45 years ago
i do no longer think of the president - or our congress - actually listens to the people. i do no longer think of a non earnings coop could artwork. The uncooked numbers will inform you why - private scientific coverage firms pay out $.ninety 9 for each $a million they take in, in expenses. They pay out yet another $.20 for each $a million in claims, in administrative expenses. the version, is made up from investment earnings on the reserves. in case you do no longer require a coop to maintain billions of greenbacks in reserves, and that they are able to't shop expenses as low as an coverage company (medicare/ medicaid run 4 cases as extreme), and that they are going to incur lots greater suitable expenses for no longer apart from insurance for preexisting situations, there is not any way this is as much less costly as private coverage. people % to assist people who help themselves. in accordance to the newspaper this morning, sixty six% of people are obese or obese. final 3 hundred and sixty 5 days, we spent $218 BILLION money treating issues immediately with regards to our being fat. we are no longer getting skinnier. expenses are going to circulate up. no longer something is unfastened, and something the government does expenses greater. And 9 of 10 individuals has scientific coverage by using their company. for all and sundry damaging/uninsured/ill individual you would be helping, you would be screwing over 8 greater people who had greater suitable insurance under the present equipment. **Deb is being naieve. administration expenses - which recommend working expenses - contain CEO salaries, flesh presser payoffs, inventory dividends (hint, you're greater suitable off procuring Coca Cola), lobbyist costs, etc - and are nonetheless purely 25% of what government run wellbeing care courses fee, to manage. WHY? by fact there are nonetheless CEO's, politicians to pay off, and lobbyist costs - and plenty, plenty greater bonuses and reward to workers, by fact it is not their money, and that they do no longer care how lots they spend.**