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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (3261)	12/16/2007 7:26:42 AM
From: Mary Cluney	Read Replies (1) \| Respond to of 42652

<<<In fact if you include the indirect costs its possible that the difference is in the other direction>>> It is about the business model. In a competitive environment, in order for a business to succeed they have to bring something to the table. As an example, Apple creates terrific products that consumer can't get anywhere else or like INTEL who produces intellectual property in advanced microprocessor technology. They can then have gross margins of 50% or more in order to bring to the bottom line 20 to 30 percent profits after deducting marketing, sales, and other expenses. Health care is something different. Unless someone brings something to the table like ISRG etc. where they bring something to the table - you can't make a profit from repackaging products and services from others without taking away something from the product or services. There is no room for a third party that does not bring anything to the table. <<< The private insurers, on the other hand, have corporate and administrative costs of 15 to 30 percent, and in addition outsource many other services they use to control costs by restricting the use of expensive resources. As a result, it can be estimated that only 50 to 60 percent of the premium dollar ends up with the providers, who themselves must pay additional administrative costs to deal with the regulations of the multiple insurers they must bill. >>>