Of course, they still need liability insurance, if your child is killed by a negligent daycare provider, they will need to compensate you. What if your child is sexually abused by a daycare provider.

Can the provider actually make a profit at that price or is it subsidized. What kind of wage to the daycare workers make? How many kids are they expected to watch.

I am not saying the U.S. daycare and healthcare systems are not broken but the idea that 80% healthcare costs go to profit is mistaken.