We have our insurance through DH's job. They have 13,000 employees and 7-8 plans to choose from. That's a lot of leverage with the various insurers to put their very best plan on the table at teh best possible price. If each county/parish became a buying consortium that allowed the currently un and under-insured residents to choose from 2-3 plans (more in very dense population areas) don't you think the insurers would put thier best foot forward to try to get and retain that business?
For 8 years, I toiled as a 'part-timer' at my job (worked 40+ hours per week, just no benefits or vacation), before I was promoted to full-time. During this period, I helped co-workers look into a self-funded benefits package, and was shocked to see the monthly costs. Even after pooling similar employees province wide, they costs were astronomical for the service provided. To get 80% coverage for meds, a bump from ward to semi-private, and a decent vision package, it was $200+ per month, and more if you had a family. I have been full-time for 7 years now, and get these benefits included in my package. I have had $700 billed to my holder, during this time, so I would have paid out an extra $20300 over the same period had I not received benefits from my employer, and bought myself.
There are roughly 60 000 people in my immediate area, and roughly 25 insurance companies. Auto insurance is mandatory, and each company provides a half dozen different options. We have a small fraction of the accidents in our area of Ontario, yet we pay similar rates to higher metropolitan areas. I have paid $36 000 in auto insurance over the past 20 years, without a claim, and most of my friends can say the same. These insurance companies haven't refunded us, or cut our rates drastically, because they are in the business to make money. Insurance companies aren't in the business because they want to help, but because they survive on people's fears. How will I get get by if I lose my car? What if my house burned down? They usually offer a fraction of your entitlement, with the hope you will agree to it, and then only offer up more if you are willing to fight them. Law firms across the USA and Canada make millions in cases against insurance companies, because they refuse to pay, or under value your claim.
As far as the 3% profit your holder claims to......the top ranked HMO provider in the USA is Harvard Pilgrim Health Care, a 'non-profit' corporation, that made a profit of $50M last year, after $40M/yr since 2001. Its CEO pulls in a dandy 6 figure salary each year, because he took a company that lost $200M in 1999, and in 2 years, turned them into a 'non-profit' money making machine. How did he turn them around? Increasing premiums by 12% per year over 5 years, and cutting payouts. The first person an insurance company hires when they want to increase profits.. a lawyer, the second... a banker. HPHC's CEO was a state money man.
