$15K average? No wonder Secretary Sebelius said the private health insurance market is in a death spiral. Everyone will eventually be in the government program.
When it comes to customer service, health insurance companies rank dead last.
Economic theory can explain why health insurers often perform poorly in customer service surveys. Retail stores use customer service to assist customers who want to purchase a good or service. They also use customer service (hence the name, customer service) to placate current customers to keep them as customers. But in health insurance, once you begin to have claims, your insurer may not want to retain you as a customer. Customer service — as it pertains to health insurance — is basically about paying claims. Even though insurers expect to pay all legitimate claims for current enrollees, they have little incentive to invest resources into customer service, which costs money rather than makes money.
Basically, insurers is good at transferring the risk of a catastrophic problem; insurance is not a good way to pay for day-to-day medical needs. If you want great response, control your own money.
Devon’s comment is quite insightful, per usual. Its interesting however, that he says that insurance is a way to transfer risk. In my economics of health class we were taught explicitly that this was not the case, based on the work of a health economist named John Nyman. I don’t pretend to know anything about the field, but I do wish we would have heard both arguments instead of being only taught that it was a transfer of money and not of risk.
The article about the investment traits of those with high IQ is facisnating. Perhaps there is also a corrolation between IQ and discipline.
$15K average? No wonder Secretary Sebelius said the private health insurance market is in a death spiral. Everyone will eventually be in the government program.
Let’s remain the only country without a VAT tax.
$15K for a family plan? That’s steep.
Economic theory can explain why health insurers often perform poorly in customer service surveys. Retail stores use customer service to assist customers who want to purchase a good or service. They also use customer service (hence the name, customer service) to placate current customers to keep them as customers. But in health insurance, once you begin to have claims, your insurer may not want to retain you as a customer. Customer service — as it pertains to health insurance — is basically about paying claims. Even though insurers expect to pay all legitimate claims for current enrollees, they have little incentive to invest resources into customer service, which costs money rather than makes money.
Basically, insurers is good at transferring the risk of a catastrophic problem; insurance is not a good way to pay for day-to-day medical needs. If you want great response, control your own money.
Not at all surprised that health insurance companies rank dead last.
Over $15k, how can it be that my family policy is only $450/month ($5,400/year)?
Devon’s comment is quite insightful, per usual. Its interesting however, that he says that insurance is a way to transfer risk. In my economics of health class we were taught explicitly that this was not the case, based on the work of a health economist named John Nyman. I don’t pretend to know anything about the field, but I do wish we would have heard both arguments instead of being only taught that it was a transfer of money and not of risk.
The article about the investment traits of those with high IQ is facisnating. Perhaps there is also a corrolation between IQ and discipline.