They are not a charitable organizations.
Have you ever looked at what a doctor visit bills the insurance company. Office visit. $279, mental health evaluation $25. ( are you doing ok?, any problems at home questions). Knee rehab. $750 for 45 minutes.
The insurance pays the doctor $75 of the $279.
Meanwhile the insurance billed you $1000 a month and gave back to the Dr. $125.... insuramce gross profit. $875 for the month.
My experience with Medicare and my own supplemental insurance is that the hospital/doctor usually get about 10-15% of what they actually charge.
I pay $100 cash to see a dr in my area. No insurance. All of my prescriptions are under $20 no insurance.
People are being robbed blind by health insurance.
I pay $177/mo for accident insurance for my husband and self that is similar to a savings plan. Pays out set amounts for injuries directly to me not providers.
The company invests the premiums and keeps the interest and the principle is paid to my beneficiary upon death.
That is not all going to be gross profit. However convincing people that insurance is necessary for every health care need sure jacked the cost up. Health insurance for basic office visit and care was once optional. But now for most people has become necessary. I blame insurance companies.
There is also the issue of every aspect of medical care being specialized. Things that were done by your doctor are now done by other providers. Such as
Lab work
Setting bones and applying a cast for simple fractures
Stiches
Xrays
Eye exam/ Hearing tests.
Are just a few things that a GP would do in the office. I know because my mom worked for doctors when I was younger and this was all part of the doctor’s routine.