National Underwriter Life & Health recently ran an article about how Obamacare will affect brokers near an article about high hospital costs.
It just seems obvious to me that the real problem here is not with high insurance premiums but with the actual cost of health care.
Most of the members of Congress who created Obamacare just don’t seem to have understood the fact that insurance premiums are driven by actual costs.
When costs rise, insurance premiums must rise.
There was very little attention paid to actual costs in the Obamacare bill. The drafters seemed to want to demonize the insurance companies, and, while doing that, overlooked the real health care cost culprit: The cost of care.
The profit margin of insurance companies is among the lowest for any industry.
When you look at some of the underlying health care costs, it’s understandable that insurance premiums are very high.