Cracking Down on Health Insurance Companies

[Crabcake Johnny]

Well, I want to dig into that just a tad. In theory, I agree with you. That said, there's no other business model that "punishes" people for not having a network discount to the extent of health insurance.

Without AAA I might need to have my car towed, but it's not gonna cost $1,800 to tow it 10 miles. I might not be a member of Marriott's rewards club, but that doesn't mean it's $600 per night.

I know those are rather poor analogizes but a hospital grotesquely overcharging people who actually do pay for services without insurance to offset people who don't pay is unjustified.

"Theft" is built into everything. Pricing is set to compensate for "breakage." But Target, figuring in for shoplifting, doesn't charge $250 for a t-shirt...but if you join some "Target Members Club" it's not $250, but $10.

This, however, is the model I see with providers. Have insurance? Great, that ER visit, re-priced is $350. Oh, you don't have insurance? Well...sir, then it's $3,650 for you. That's garbage.

 

[somarco]

If anyone wants a straight indemnity plan I believe Ass-yourant still offers one.

Consumers with managed care plans have a choice. No one forces them to use par providers.

We could dial back the clock about 20 years and return to days of no networks as long as consumers are willing to pay more for health care and health insurance.

A LOT more.

Of course when they become Medicare eligible they can use any provider they wish without penalty unless they buy an MA plan.

Medicare almost works, except for the fact it is going broke. Other than that it is a wonderful system.

 

[Crabcake Johnny]

It's funny you mention Medicare going broke - was discussing that very issue with my father last night. He remembers when it was going broke with only a "few more years left." He said that article was in the early 80s - 30 years ago.

I remember when it had a few years left when I got into the biz 9 years ago. Of course, it's 2012 and it has a few years left.

I'm SURE it will be "broke" by 2016. Of course, in 2016 it'll have "a few years left."

 

[somarco]

He probably remembers the unsinkable Titanic as well.

 

[Crabcake Johnny]

Don't worry, it only has "three years left."

 

[Ann H]

Medicare is broke but the government can simply print money, raise taxes or confuse the accounting. PPACA is already broke. Cost shifting in the health care system is a joke next to cost shifting in government!

 

[YouGotMyMoney]

Medicare is broke but the government can simply print money, raise taxes or confuse the accounting. PPACA is already broke. Cost shifting in the health care system is a joke next to cost shifting in government!

funny that if a company did the same thing they would be brought up on charges by the SEC.

 

[somarco]

If you think Medicare isn't broke, Google "Medicare doc fix".

You can also read about it on InsureBlog.