Here is a number to ponder, 198,600,000.
That’s the number of Americans who are enrolled in Medicare, Medicaid, CHIP or an employer self-insured health plan. To that number you can add military and VA beneficiaries and millions of state and federal workers.
Why is that significant? Because these Americans do not use health insurance. In other words, their health plans pay for the health care received and then pay a fixed fee for claim administration (excluding the VA and active military where services are provided). An insurance company has no risk for the claims incurred.
No insurance company is ripping these employers off, no insurance company has a higher profit because of higher or lower claims. And all these plans have or should have admin costs far lower than the 15% typically used for health insurance. These plans must deal with rising health care costs and are often frustrated in the attempt.