The Fort Worth Press - Health insurers: the 800-pound gorilla in profit-driven US system

USD -
AED 3.672504
AFN 65.000368
ALL 81.216919
AMD 362.051328
ANG 1.789785
AOA 917.000367
ARS 1515.25437
AUD 1.435956
AWG 1.80125
AZN 1.70397
BAM 1.739803
BBD 2.01708
BDT 123.195303
BGN 1.747831
BHD 0.378775
BIF 2997.464751
BMD 1
BND 1.281146
BOB 11.69239
BRL 5.065104
BSD 1.001468
BTN 95.050483
BWP 13.720589
BYN 3.015879
BYR 19600
BZD 2.014233
CAD 1.41575
CDF 2313.50392
CHF 0.825932
CLF 0.024881
CLP 979.255437
CNY 6.691204
CNH 6.686704
COP 3173.953654
CRC 455.099408
CUC 1
CUP 24.035938
CVE 98.087444
CZK 21.645304
DJF 178.33919
DKK 6.651204
DOP 61.433083
DZD 133.824668
EGP 53.529689
ERN 15
ETB 163.585998
EUR 0.889904
FJD 2.26765
FKP 0.750253
GBP 0.752078
GEL 2.590391
GGP 0.750253
GHS 11.695058
GIP 0.750253
GMD 73.503851
GNF 8810.21216
GTQ 7.652004
GYD 209.527198
HKD 7.84815
HNL 26.885202
HRK 6.703804
HTG 131.147978
HUF 323.310388
IDR 18053
ILS 3.09465
IMP 0.750253
INR 94.965504
IQD 1518.213762
IRR 1795877.503816
ISK 121.180386
JEP 0.750253
JMD 159.195837
JOD 0.70904
JPY 158.01504
KES 130.098296
KGS 87.450384
KHR 4070.631144
KMF 440.00035
KPW 899.999961
KRW 1334.740383
KWD 0.31082
KYD 0.834586
KZT 453.195748
LAK 22534.359294
LBP 89683.40524
LKR 331.690611
LRD 170.751234
LSL 16.462394
LTL 2.95274
LVL 0.60489
LYD 6.431526
MAD 9.729662
MDL 17.966464
MGA 4507.405595
MKD 54.836988
MMK 2100.071343
MNT 3596.488264
MOP 8.096339
MRU 40.037362
MUR 47.230378
MVR 15.460378
MWK 1736.600987
MXN 18.492904
MYR 4.083204
MZN 63.903729
NAD 16.462394
NGN 1331.210377
NIO 36.854512
NOK 9.427704
NPR 152.081128
NZD 1.767253
OMR 0.382413
PAB 1.001468
PEN 3.444825
PGK 4.547436
PHP 62.986038
PKR 277.237468
PLN 3.88825
PYG 5719.877241
QAR 3.660721
RON 4.730604
RSD 104.461148
RUB 84.13468
RWF 1478.183516
SAR 3.752837
SBD 8.064647
SCR 13.905529
SDG 601.503676
SEK 9.912404
SGD 1.282104
SHP 0.754745
SLE 24.680371
SLL 20969.504398
SOS 572.343548
SRD 37.794504
STD 20697.981008
STN 21.794245
SVC 8.763065
SYP 13001.999685
SZL 16.455989
THB 33.445038
TJS 9.228751
TMT 3.51
TND 2.98768
TOP 2.40776
TRY 49.513804
TTD 6.798915
TWD 32.453604
TZS 2646.44398
UAH 44.920874
UGX 4136.458658
UYU 40.314905
UZS 12073.121914
VES 878.910604
VND 25894.5
VUV 119.385856
WST 2.787824
XAF 583.738825
XAG 0.017551
XAU 0.000240063761
XCD 2.70255
XCG 1.804919
XDR 0.707052
XOF 583.738825
XPF 106.089045
YER 236.150363
ZAR 16.494037
ZMK 9001.203584
ZMW 20.049815
ZWL 321.999592
SSP 5750.775019
MXV 2.088032
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

Health insurers: the 800-pound gorilla in profit-driven US system
Health insurers: the 800-pound gorilla in profit-driven US system / Photo: © AFP

Health insurers: the 800-pound gorilla in profit-driven US system

Last week's slaying of UnitedHealthcare executive Brian Thompson has brought renewed attention to the widespread dissatisfaction with the American health care system, even as prominent leaders have condemned the killing.

Text size:

Reports that the casings of the bullets fired by suspected shooter Luigi Mangione had the words "depose, deny, delay" inscribed on them prompted horror stories on social media about health insurers who use those very tactics to get out of paying for medical tests or cancer treatment.

Such fights with sick and ailing consumers are only one of the gripes many have with a health system that has also been criticized for mystery billing practices, opaque middlemen, confusing jargon and overpriced drugs.

While surveys suggest pharmaceutical companies may be even more disliked than health insurers, the latter occupies a more foundational role in the profit-driven American system that has evolved over recent decades.

On the continuum between totally private and completely government-run, the US health care system is "more free-market than average," said Greg Shaw, a political science professor at Illinois Wesleyan University.

But the "hybrid" nature of a health system mixing private and public governance is not the US system's most unusual trait: the country is a true "outlier" as the only developed economy that doesn't guarantee health care as a right, Shaw said.

The free-market ethos has created an enormous berth for insurers such as UnitedHealth, which spent nearly $15 billion on dividends and share buybacks in 2023. The evening before Thompson was shot, UnitedHealth Group projected 2025 revenues of at least $450 billion, up nearly 40 percent from the level three years ago.

- Entrenched player -

Shaw described the position of private insurers in US health care as entrenched.

The industry dates to the 1920s in Texas, when health insurance was invented to help hospitals with unpaid invoices and help patients who wanted access to care.

Originally led by the non-profit Blue Cross plans, the system took off after World War II when companies facing labor shortages offered health insurance instead of higher pay. Private companies Aetna and Cigna emerged in the 1950s.

"The new demand for health insurance presented a business opportunity and spawned an emerging market with other motivations," journalist and physician Elisabeth Rosenthal writes in "An American Sickness," published in 2017.

"Once acceptance of health insurance was widespread, a domino effect ensued: hospitals adapted to its financial incentives, which changed how doctors practiced medicine, which revolutionized the types of drugs and devices that manufacturers made and marketed."

While progressives like Vermont Senator Bernie Sanders have backed government-run health care, there has been no serious move in recent decades to excise insurers from the American health care system.

After Bill Clinton won the White House in 1992, his ill-fated health care reform proposal preserved the private insurance system. The 2010 Affordable Care Act, signed into law by Barack Obama, included provisions meant to control costs and broaden coverage, but was again built around private insurance.

Outgoing President Joe Biden has taken aim at health care profiteering by drugmakers and other players but has not primarily focused on insurers.

Federal Trade Commission Chair Lina Khan launched a "cross-government inquiry" with other agencies on the impact of "corporate greed in health care." But the effort primarily targeted private equity firms that might attempt to acquire health care assets.

A September 2024 survey by YouGov ranked health insurance fifth highest in terms of industries that people say should be regulated more heavily. That means the public views health insurers as less trustworthy than pornographers or bankers, which ranked lower, but more reliable than companies in artificial intelligence, pharmaceuticals, social media and firearms, which ranked first through fourth.

A December 5 YouGov poll after the shooting found 59 percent of Americans "very satisfied" or "somewhat satisfied" with their health insurance.

Shaw thinks the health insurance industry could face a significant confrontational push from Washington in the coming years due to the rising concerns about people carrying heavy medical debt.

But he does not see the current wave of attention as a meaningful challenge, in part because the sharpest criticism can be dismissed as coming from extremists who condone violence.

"I don't think this is in the industry's George Floyd moment," he said. "I don't think this is going to catalyze soul-searching on the part of the industry and regulators."

N.Patterson--TFWP