I have to write a research paper about the health insurance companies and I have many questions to answer within my paper. I am stuck on these two questions can anyone help me please? Please cite you sources thanks. how do health insurance companies make make money? What kind of problems are health insurance companies facing?
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Health insurance companies make the majority of their money, from investment income from the "reserves" they invest. They only make about 2% off of the premiums they charge to their policyholders. The biggest problems, are increasing claims costs, increasing medical identity fraud, and increasing governmental regulation.
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