rjibosh
Hot Rolled
- Joined
- Jul 22, 2003
- Location
- Los Angeles
Last year, Time Magazine published a very large article that examined the high cost of Health Care here. I think it was called The Bitter Pill. One telling piece of information was the profit that hospitals make. Believe it or not American hospitals make 25% profit on average. This means that if it costs a hospital $750.00 for a service, it recieves $1,000.00 for compensation. This is after all the insurance discounts and patient deductables.
I'm told that the Affordable Care Act caps the profit of insurance providers at 35%. ( guess they had some pretty good lobbiests). For the insurance company to make its 35% on the above mentioned $1,000.00 transaction it has to collect a premium of $1,538.00! So for a hospital to provide service that costs $750.00, someone has to pay the insurance company $1,538.00. AND of that $1,538.00 premium, $788.00 is bottom line profit to the hospital and insurance provider!!!!! The profit to the hospital and the insurer is MORE than the actual cost of service. If you extrapolate these numbers out to the TRILLIONS of dollars spent on health care in America, it becomes obvious the best way to get filthy rich here is to open a hospital or a health insurance company.
Someone please tell me where my numbers are wrong before I sell all my machinery and start buying medical equipment.
Rick
I'm told that the Affordable Care Act caps the profit of insurance providers at 35%. ( guess they had some pretty good lobbiests). For the insurance company to make its 35% on the above mentioned $1,000.00 transaction it has to collect a premium of $1,538.00! So for a hospital to provide service that costs $750.00, someone has to pay the insurance company $1,538.00. AND of that $1,538.00 premium, $788.00 is bottom line profit to the hospital and insurance provider!!!!! The profit to the hospital and the insurer is MORE than the actual cost of service. If you extrapolate these numbers out to the TRILLIONS of dollars spent on health care in America, it becomes obvious the best way to get filthy rich here is to open a hospital or a health insurance company.
Someone please tell me where my numbers are wrong before I sell all my machinery and start buying medical equipment.
Rick
