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How insurance companies make money

Posted by fallsfall on February 11, 2005, at 11:06:25

From "The World According to my Therapist"

Health insurance companies have it all figured out. What a way to do business! It's like the rebates you get when you buy a computer from Circuit City. They hand out a bunch of rebates, but not everybody sends them in (I do, and you do, but not everybody), so they don't have to pay on those. And then people send them in, but forget that they are supposed to be getting a check for $50, or $100, and if they don't get it, they never notice. Plus they send the rebate checks in envelopes that look like junk mail, so some people throw them away without opening them - and if the check isn't cashed, they don't have to pay the money.

What other business do you know that "loses" stuff? The Electric company never loses my check... But the Health insurance company "loses" some claims. And people forget to go after them for it. Or people are too wrapped up in their cancer, or their mental illness, to go after them for it. People aren't willing to go through all the hassle for $30 here or $50 there. They deny claims and people don't appeal because they assume that they will lose. All of those $30 and $50 add up to big bucks for the insurance company.

It is *so* true. What a brilliant way to do business. You can advertise wonderful benefits, but if the benefits are hard to "get", then people won't bother and you don't have to pay for them.

How did he get *SO* smart?

 

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poster:fallsfall thread:456247
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