Why healthcare insurance companies have a conflict of interest

Right now as you know from watching the news, there is a fight between Democrats and Republicans over healthcare. Should it be run by the government or by private insurance companies?

Here is my view. Healthcare insurance companies are FOR PROFIT businesses. What this means is they make money and make their shareholders money by earning as much money as possible while spending as little as possible. Economics 101 right. Now let's think about this. Insurance companies lose money (i.e., lower profits) when they pay medical claims. So it is in an insurance company's best interest NOT to pay your claims if your get sick or injured. Yes, you read that right. An insurance company's primary job is to earn a return on investment for shareholders, NOT to pay medical claims. That is why insurance companies deny so many claims and nickel and dime doctors and hospitals so much.

The whole purpose of insurance is to protect you against something bad happening to you. But there is a huge conflict of interest when you have for profit companies in charge of paying claims because the more claims they pay, the less money they make in profits for shareholders.

Now, if the government runs healthcare, it is not a for profit agency handling claims. Therefore, they do not have incentive to deny you of the healthcare you need. I know republicans are for small government and capitalism, but when it is your life at stake, I choose a socialist healthcare system where I know I will be taken care of over a for profit business doing all they can to deny me healthcare so they can increase their profits.

Click here to tweet this blog post

Peter Geisheker
The Geisheker Group Advertising Agency
(920) 471-1638