There SHOULD be the same incintive in private health care like the US to also lower costs. but when we voted in the ACA (Obamacare) there was a well meaning clause that said insurers had to spend 85% of their premiums on care. That should also re-inforce the cost savings part, but then the largest companies started buying Pharmacies, Pharmacy Benefit Managers, Doctors offices, and even whole Hospitals.
Now they can still spend 85% of the INSURANCE premiums on care, but then those costs are going to their other divisions which can raise prices at will, and make massive profits for the whole group.
Now they can still spend 85% of the INSURANCE premiums on care, but then those costs are going to their other divisions which can raise prices at will, and make massive profits for the whole group.