"They are the villains in this," Speaker Nancy Pelosi told reporters. She labeled industry practices as "immoral."
The truth is insurers are actually holding down costs. Most insurance companies send a statement to clients after they use health care services. Check your statement and you will see the insurance company is getting a 40% to 50% discount for services. A PricewaterhouseCoopers study of 2008 costs indicates 87% of insurance premiums go to pay for health care services. Only 3% are insurance company profits.
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Considering the bureaucracy and inefficiency of the Federal Government, the waste from a public option would likely be far in excess of 3%. Other proposed changes, such as eliminating preexisting conditions, will dramatically drive up costs to insurers.