QUOTE(darosha @ Nov 18 2025, 02:06 PM)
well its not a scam, but its a vicious cycle of inflation
the higher the medical cost, the higher the insurance premium, the higher the demand, the higher the medical cost again and so on, lead to further escalation
Higher premium leads to higher demand? LOL
Insurance companies actually prefer not increasing price too much because it will lead to people dropping their policies. It's actually happening today.
When they underwrite policies, they already take into consideration the profits for the future. It's stable and consistent profits. When medical inflation happened, it cause all their plans to go haywire. Their projected profits will shrink and it might even lead to losses. That's why repricing happens.
However, they cannot don't reprice as it will hit them worse. Instead, they just have to bear with people cancelling their policies.