In many businesses, that does account for volume discounts. But the difference in Medical costs can be 4 times greater for an individual than an insurance company. Are we to believe that 4/5th's of medical costs are selling expenses?
What's really required to sell a medical customer? Location, and Reputation of care. Oh and being in the Insurance companies network, which is usually only found out AFTER the customer attempts to obtain care from a provider.
Are we talking about the same issue?
I am talking about the difference between buying a policy as an individual and buying it as part of a “recognized group” (usually a place of employment).
In both cases it involves buying from an insurance company.
But you said “greater for an individual than an insurance company”, so I’m not sure we’re talking about the same thing here.