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RubberChicken24 t1_ixn9qpu wrote

Reply to comment by trucorsair in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1

It's also a misconception that UPMC makes a lot of money and is non profit. Their hospital division is non profit and does struggle to make ends meet. Their insurance division is for profit and generates a boatload of money.

Insurers are the real benefactors of healthcare in the US.

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asr t1_ixozhty wrote

> and generates a boatload of money

By law this is capped at 20%.

> Insurers are the real benefactors of healthcare in the US.

It's actually less than 20% - they have to spend 80% on payouts to providers, from the remaining 20% they have to pay administrative staff, their actual profit margin is not high.

> Their hospital division is non profit and does struggle to make ends meet.

Then something is seriously wonky - the insurance is not the source of high costs, usually it's Dr's and hospitals, but you claim they are losing money. So where did it all go?!?

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Willow-girl t1_ixud7dw wrote

> It's actually less than 20% - they have to spend 80% on payouts to providers, from the remaining 20% they have to pay administrative staff, their actual profit margin is not high.

It is rules like this that drive insurance companies and hospitals to collaborate to drive prices as high as the market will bear. If your salary is coming out of that 20%, you want that 20% to be as large as possible!

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leadfoot9 t1_ixq6zlh wrote

>the insurance is not the source of high costs

Well, let's not forget the cost to patients and providers of dealing with the bureaucracies of multiple insurance companies. The insurance companies may not be charging that money directly, but it's a real cost.

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