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You had me in the first half, but fuck insurance companies, they too are for-profit, not for-benefit-of-patient. If anything, they're some of the worst offenders at it.
I always found it strange... insurances offer a "free" annual exam, but if you need additional testing and care, you get fucked. Youd think snipping health problems in the butt as they prop up would be an incentive to reducing costs. But it just shows how corporations give zero thought to actually care and is more incentivized for people to keep paying insurances and never use it except when they are likely to expire...
They're in the business of making money, simple as.
It just happens that in this case the incentives would align cause they're not paying for the toothpaste.
They might not be buying the toothpaste, but they may very well be in partnership with or owned by the same people as the toothpaste company. I'm sure they know the brand of toothpaste you use makes very little difference in the grand scheme of things, and if they were to recommend one it wouldn't be because they're wanting what's best for you, but because some money exchanged hands.