You may have heard or have experiences by yourself dad for a person with insurance a large amount of costs caused by illness can be covered by the insurance company. Have you ever been curious about how an insurance company can make a profit in this process?
In America it is generally acknowledged that medical treatment and Wall Street have done harm to society. Financial derivatives from Wall Street may come from the wealth of other people, So a lot of people in America are criticizing Wall Street. As to the medical treatment policy in America people may have deep feelings of its high price and low efficiency. Expenses of medical treatment in America have accounted for 20% of the GDP of this country, which is even equal to the GDP of Germany. When President Obama came to the stage, he made a promise, that is to change the functions of the wall street and the medical treatment situations in this country, so the slogan of Obama at the time is “to change”. But many of his policies are also not so efficient to provide real benefit to the general public in America. And most of those policies were changed by Donald Trump later.
The medical expenses of people in America were afforded by the government by half and the general public needed to purchase insurance by themselves to afford another half of the expenses. Under this background some insurance companies and the medical systems have worked together to push up the costs of treatment, so that people have to buy insurance, or it will lead to bankruptcy easily because of serious illnesses. It was reported that once a female fainted away and the people around her card and ambulance for her and she was afraid of the bills she needed to pay after the treatment. But later she found that she only needs to pay $10 for the treatment and the rest of the bill will be afforded by the insurance company.
So how much need an insurance company to pay to the hospital？You may think US$9099. Actually, it's not. The insurance company only needs to pay US$999. How does it come? The reason is that the hospital gives discounts to the company which is quite complicated. The rules involved in the discounts are totally different from other projects and it is designed by the company and the hospital together. The insurance company is playing the role of a negotiator in this process.
It should be noted that there may be traps in the process of having medical treatment and purchasing insurance. That is the insurance company may be in league with the hospital To raise the price of medical treatment. So in America without insurance you will encounter various kinds of difficulties. But even though you actually have insurance problems may still emerge because of the complicated rules. So while insurance it's a good way for us to guarantee our life under extreme situations, we need to be cautious of the traps waiting for us.