Some of the most incredible innovations by some of the greatest minds in history were made when there was no profit motive. Once that ground was broken and the heavy lifting done, the for-profit companies came in and stood on the shoulders of giants to iterate on those accomplishments. Of course profit is a huge motivator for innovation, but it’s not the only motivator and it’s not necessary in many cases. In fact, in some cases, it’s an inhibitor as with initial space exploration.
And then there’s the case that there is no reason for there to be profit for health insurance companies. They are rent-seekers. They provide no additional wealth to the economy. It is a perfect example for a government function.
in some particular cases wartime necessity and such situations stand apart from the quest for profit sure. einstein’s insistence along with szilard that we develop an atomic bomb ahead of the german national socialist party was not for profit. the incentive was to beat madmen to it.
these extreme circumstances will not be the norm of course for healthcare.
if providers are paid the same no matter how good or not, you can bet it won’t be good or at least as good as it can be.
insurance like anything open to profit motive and the market will compete which will elevate the level of service.
money made in growing companies making owners, stakeholders and employees too richer does indeed grow wealth. even in insurance.