Re:Why drug prices in America are so high
by supergeek133 on Wednesday September 14, 2016 @10:35AM
(#12497236)
Same thing happened to me with auto insurance. State trooper shows up, asks everyone if they are OK, doesn't take a report because no damage.
A year later my insurance settles with the guy for $4k, and my insurance premium almost doubles.
Medical insurance is the same because the insurer, the drug company, and the doctor ALL benefit from increased prices.
You would think, but they don't. That's the problem. Why? I don't know.
Car insurance is a similar thing. My SO barely tapped the car in front of her at a stop light. No damage, even though the woman flew out of the car claiming her car was damaged (we have pics of no damage) and that her children were injured (two boys in the back seat without seat belts or car seats). My SO asked the boys if they were OK and they laughed and said "yes."
So, a month or so later I get a call from the insurance company they've settled for medical bills of > $10k and damage to the car for ~$4k. I was livid and told them I wanted them to fight this fraud. Nope, they wouldn't do it. I begged the agent for 20 minutes. It's cheaper to settle.
It would clearly be in the best interest of the insurance company to crack down on fraud, but they feel it's "cheaper" to settle and move on.
I think the same mindset exists in the medical insurance industry.