Limiting the supply of doctors will increase costs in the long run because it reduces access to preventive care. Residency caps disproportionately impact PCPs.
It might reduce the costs they pay for preventive care or non-urgent care, but serious issues will progress.
You might not have to pay for metformin to treat diabetes, but you’ll eventually end up paying for a hospital stay and amputation.
Your proposed incentive for insurance companies to want to restrict the supply of doctors (prior to the ACA) doesn’t make sense, and that’s what I’m trying to convince you of.
It might reduce the costs they pay for preventive care or non-urgent care, but serious issues will progress.
You might not have to pay for metformin to treat diabetes, but you’ll eventually end up paying for a hospital stay and amputation.