> Just look at health insurance companies for a prime example: they make profit by denying claims.
Ok but why do people pick those insurance companies?
We see this across the board too and not just insurance companies. Governments low to pick the lowest bidder who then has massive cost overruns which has to put them above the second lowest bid in the end. Why is counter party risk never accounted for?
Do CEOs and CFOs report to HR? Are HR heads not rewarded for cutting costs? How would people in other departments react if HR alone got better health insurance?
My point is that if HR picks a company that'll deny their coverage then they also have to live with their decision as well as the rest of the employees who had no choice.
Ok but why do people pick those insurance companies?
We see this across the board too and not just insurance companies. Governments low to pick the lowest bidder who then has massive cost overruns which has to put them above the second lowest bid in the end. Why is counter party risk never accounted for?