Reading the article, I see the same scam being perpetrated by the insurance companies that we eventually pay for. It mentions that Turing is capping co-payments to $10.
OK, now the serfs are overjoyed that it only costs them that much while the balance of the $750/pill is SUPPOSEDLY paid for by insurance. The only problem is that your insurance premium is calculated on the expected costs to the insurance companies.
Now, how long have we heard about insurance companies never, ever paying the first full amount of a claim? That’s right, they always negotiate that down by very large amounts according to those who are desperately trying to get their money so they can recoup their salaries and overheads to keep their business cash flow going.
So, since the premiums you are paying are a reflection of the “expected” full costs but the payout is usually well below that, the insurance company pockets the difference, because you are paying for it in advance based off the models of projected costs rather than actual.
“insurance company pockets the difference, because you are paying for it in advance “
Yes. This is the type of area where I could see getting gov involved, though it’s not actually necessary.
If gov gets involved in insurance, it shouldn’t be to dictate policy content, but I could see it making the company DISCOSE information, such as, in this case, how many claims are paid at a reduce reimbursement and by how much. That way, the consumer would be informed as to how the insurance company operates, and could decide whether or not they want a policy with them.
Sort of like the SEC stuff you see with stocks.