Why health insurers aren't the main problem in U.S. healthcare
By
Noah Smith
Slow-proofed and worth the wait. Worth its weight in flour.
Summary
This article argues that health insurers are not the primary villains in the U.S. healthcare system, contrary to popular progressive narratives. It points out that health insurers have consistently low profit margins (often near zero), much lower than typical American corporations. The piece critiques the progressive anti-monopoly movement for targeting industries like health insurers, grocery stores, and airlines—sectors with thin margins—while potentially missing bigger structural issues in healthcare. It is a repost from the Noahpinion archive, offering an analytical and opinion-driven take on healthcare economics and political targeting.
Key quotes
· 3 pulledGrocery stores and health insurers both consistently have much lower profit margins than American corporations in general, often hovering near the zero mark.
Commenter Matthew argued that the low profit margins of insurers are not a reason not to worry about their market power
Consider the movement's choice of targets. These include some industries with high profit margins, but also some with very low margins.
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