I think this is because health insurers need to process zillions of claims to justify their overheads. But, in the long run, all costs are variable. What I'd like to see is a health plan that says: "We pay nothing for primary care, and therefore do not process those claims. We cover you when you are diagnized with a serious illness or admitted to hospital." Such a health plan's cost fixed costs would be dramatically lower than the status quo, giving it immediate competitive advantage. There'd be no "deductible" to worry about - just the diagnosis.

• posted by John R. Graham
• March 28, 2008 @ 3:23 pm
• Permalink

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