Insurance and pharm companies do not own hospitals. Doesn't happen. In fact, it may currently be illegal to do so (with Medicare Part D). Merck divested itself of even its PBM (as Medco) so as to avoid this conflict. Not that that went smoothly, but the larger point is still true. Hospitals are not owned by either insurance companies or by pharm companies.
Secondly, hospitals are not failing at tremendous rates. In fact, higher hospital bills are one of the fasting growing costs in the healthcare segment. Most hospitals get paid at a percentage rate of the billed charges. So, if the hospital bills $20,000 and gets 80% from the insurance company, they get $18,000. As no one really sees that bill (or more importantly, most likely pays 10% or even a per diem amount of $300), people tend to think hospitals are not expensive. Check out the hospitals in your area. If they're like EVERY hospital in St. Louis, they're constructing something somewhere.
The principal driver of healthcares costs is demand. We utilize healthcare at a much greater rate than other countries. Higher demand, higer prices.
Remove the insurance and the prices will fall in line by supply and demand.
And here we agree.
The dirty little secret behind employer insurance is that it is impacting hiring patterns. A company filled with overweight 50-somethings costs a bunch more to insure than a company with slim 30-somethings.
I would disagree. That is what holding companies are for. It is easy enough to play a corporate shell game as you probably well know.
Even so, we agree that insurance is propping up the whole industry (or I believe we agree). If not as I suggest, then what is your belief as to why/how insurance is propping it up (not agitating, honest question)?