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Health Insurance Is A Business

This should come as no surprise to many Americans; health insurance companies are running a business. Therefore, they want to keep the bottom line as profitable as possible. To do that, they charge what the market will bear. From their point of view, they are taking the risk of insuring you and therefore, if they’re assuming that risk, then you need to pay for that effort of their part.

So, if you have ever wondered why different companies charge different prices for the same thing, they are charging what they do, because they can – in part. They are also charging what they do to stay in business and make money. They make money selling health insurance policies. So if you are healthy; they make money, or rather save money on you. If you are not, they may lose money on you. You can bet your prices will go up. It is something to think about when you shell out money for a policy and why it makes sense to shop around for deals.

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