Insurance’s Dirty Secrets Leading to Burst Bubble?

August 23, 2016 by Redirect Health

Here's a great article from Market Watch that nails down the truth about American health insurance. And the author, Brett Arends, uses a stock graph similar to the one RDH has used to show how insurers are absolutely crushing the S&P by 300-400%. The traditional healthcare system looks like it's working just fine for some... just not for the businesses and the teams that Redirect Health serves.

However, the author misses the mark a bit when he appears to get fooled into thinking that insurers deny so many claims so they can directly boost profits.

Here's another way to view it: insurers deny many small claims to doctors, giving the vast illusion that they are protecting their customers. It’s a narrative that often gets repeated and nobody notices the sleight of hand that allows them to be under the radar when they overpay many multiples more than they should to their public company cousins – the drug companies and hospitals.

Why would they do this? Well, the law says they have to spend 80-85% of the money we give them for premiums on "healthcare" or they have to return it to us. Public companies having to return booked revenue is never a good thing for the CEO or shareholders.

Are we looking at a bubble about to burst? One has to at least wonder about these stock trends for an industry making profit off administration and waste nobody wants.