Debunking the Myth: Profit in US Healthcare Existed Long Before the 1973 HMO Act
By
Richard Meyer
A good honest bake. Not flashy, but you'll finish the whole bagel.
Summary
This article debunks a popular social media myth that it was illegal to profit from healthcare in the US before 1973. It explains that for-profit healthcare entities existed long before the HMO Act of 1973, and that the pharmaceutical industry's increasing profit-focus resulted from financial, regulatory, and market pressures rather than sudden greed. The article traces the evolution of profit incentives in pharma through various historical and economic forces.
Key quotes
· 4 pulledEvery few months, a post makes the rounds on social media claiming that before 1973 it was illegal to profit from healthcare in the United States
The reality is more complicated.
Pharma did not become increasingly profit-focused because executives suddenly became more greedy.
The industry evolved under financial, regulatory, and market pressures that steadily pushed companies
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