Quote:
Originally Posted by buckman
Why are the rates different? I'm convinced the reason they are is because companies now have the ability to screw the state of their choosing without fear of cross-stateline compitition.
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Higher costs associated with higher medical and drug claims. The cost of a procedures/services (which has nothing to do with the ins. co.) can much different in different locations. If there is no competition in an area (think Alaska or Wy for example) the bills could be much higher than somewhere where there is comp. and the insurance co. can negotiate better discounts.
It's not that hard for big insurance companies to get approved in muliple states if they want.
Don't forget that most of an insurance co. costs are claims. Sure they have exp. and profit, but the vast majority are claims (75%???). If you look at a bill, an insurance co. takes what the Dr. charges and applies a negotiated disc. to the charge. Those disc. can be as high as 60% of the Drs/hosp. charge. W/o an insurance co., the Drs. bill would be like 2x as high.