Earlier quoted context omitted.
Doubtful. Insurances dont run at a loss, every penny that goes into them they take a cut as profits. If the treatment is expensive, great! More demand for their product, and even if their cut is the same, their profit and revenue will be greater.
This doesn't make sense to me. Insurance in a collective risk pooling scheme. How do they take a cut when they are the ones paying out?
Sounds great, until the insurance companies figured out that the best way to make more profit with this profit cap is to pay out more and increase the premiums accordingly. [1] Obviously, the hospitals don't mind that either.
[0] https://www.healthcare.gov/health-care-law-protections/rate-...
[1] https://www.aeaweb.org/research/regulating-health-insurers-a...