With the ever increasing cost of health care it has become important to look at why healthcare is so expensive. Apart from the doctors, nurses and assistants salaries and the equipment and medication, which is not where all the money goes, there are the administrators.
Most large companies have employed health insurance companies to manage their healthcare administration for their employees. This does create jobs for the admin clerks in the insurance companies and does make it easier for large corporations to mange the healthcare needs of their employees, but the corporate companies pay a percentage of all claims processed to the insurance company so they insurance company is under no obligation to ensure that claims are processed in a competent manner.
The article I read on Business week has claimed that the rising costs of private healthcare will not stop until we change the way the administration is handled, for competent and cheaper health care the responsibility needs to be taken away from the insurance companies or there needs to be incentives put in place for them to be competent in the task at hand.
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