There is a WHY (or at least a general why):
Obfuscation.
- lack of clarity on competitive pricing
- obfuscation by adding multiple layers in buying process (broker - insurance - claims adjuster - hospital)
- obfuscation through too-many-options syndrome (Obamacare versus Medicare versus state-driven healthcare versus emergency-only healthcare)
- lack of clarity when being billed (getting several bills from several different departments)
There's also the problem of insurance companies being a for-profit enterprise that answers more to stockholders than to patients.
This is the result of "free market" idealists at work. Health is something that everyone needs, so businesses want a piece of the big pie by trying to wedge themselves somewhere in there. Only massive government overhaul can fix this.
But that's the return (net margin, not gross cost that the insurance company is adding to the whole system). You have to look at gross, which is way higher (~5x).
- lack of clarity on competitive pricing
- obfuscation by adding multiple layers in buying process (broker - insurance - claims adjuster - hospital)
- obfuscation through too-many-options syndrome (Obamacare versus Medicare versus state-driven healthcare versus emergency-only healthcare)
- lack of clarity when being billed (getting several bills from several different departments)
There's also the problem of insurance companies being a for-profit enterprise that answers more to stockholders than to patients.
This is the result of "free market" idealists at work. Health is something that everyone needs, so businesses want a piece of the big pie by trying to wedge themselves somewhere in there. Only massive government overhaul can fix this.