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Novo Nordisk (Ozempic)
Acquired
The Mismatched Incentives in Health Insurance
Insurance companies have an incentive to cover only things that pay for themselves within 3.7 years or have overwhelming demand from employees. There's little incentive for insurers to invest in long-term health outcomes, such as weight loss, as they may offload costs onto Medicare when chronic conditions arise. This mismatch creates an incentive problem in the healthcare system, where individuals are invested in their long-term health, while insurance carriers are mainly concerned with their immediate financial liabilities.
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