re: OT-: Let's Talk Socialism

quote:

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Insurance companies strive for 3-4% return at a risk of loss

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*Most* insurance plans that cover large employers are considered "self insured" (as opposed to "fully insured"), so the insurance company is simply the administrator of the policy, whereas the company actually eats the risk and the insurance company still generates profit in the form of administrative fees which cover substantial commission checks.

That's not to say that insurance companies bear no risk, simply that this facet is overstated in modern plan design. Weirdly, Medicare risk is at least partly owned by United Health Group though... one of the reasons they were so slow to agree to any of the "all Covid coverage should be free" stuff. While that's easy to agree to for BCBS, Cigna, etc, it's a shite-ton more expensive for United.