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355 points pavel_lishin | 1 comments | | HN request time: 0.209s | source
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RobKohr ◴[] No.45389953[source]
"Federal funding typically covers 80% of bus purchases, with agencies responsible for the remainder."

Well, there is your answer. The one making the purchase isn't the one primarily paying for the purchase. This makes them less sensitive to pricing.

Kinda like how expensive healthcare is since it is paid for by insurance.

Or how you don't care how much you put on your plate or what you choose to eat at an all you can eat buffet.

The second you detach the consumer from the price of something, even through an intermediary such as health insurance, that is when they stop caring about how much something costs, and so the price jumps.

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frollogaston ◴[] No.45390102[source]
Shouldn't insurance care about the pricing though? I get why federal govt isn't sensitive, given 0 competition.
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1. foolswisdom ◴[] No.45390942[source]
As noted by sibling comments, the arm of the Healthcare company that wons the doctor's office wants to collect as much as possible, while the insurance arms are anyway capped at how much they can make. Incentives (conflict of interest) are towards paying more.