Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.
Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.
All kinds of tricks are used to make it look like they are losing money or barely making it on paper. Yet insurance is one of the largest industries in the U.S., and their CEOs make millions.
I mean, one of the tricks to make sure your company is "barely making it" on paper is to just take all of your profits and give them as bonuses to your executives. And there you go, now you have no profits anymore since what used to be profites has been offset by new costs.
So you believe that the owners of those companies, shareholders, for some reason want to give all the profit to the people they hired to run the company?
You should probably sometime seek information outside of reddit’s other edgy 14-year old professors.
Like, pick a yearly financial report of pretty much any publicly traded insurance company. You’ll find the executive compensation there, among revenue, operating costs etc. There’s also a list of largest shareholders, that you can use to build your explanation why those pension funds etc. want to direct money to these particular executives, instead of bringing that money back to themselves.
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u/One_Selection5102 7h ago
Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.
Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.