Insurance lobby... Are they dumb?

  1. You have chosen to ignore posts from Charles2008. Show Charles2008's posts

    Insurance lobby... Are they dumb?

    I just had a chance to read up the AHIP report they released a couple of days ago. They are basically arguing against the general reform package (that most agree with), such as minimum benefit, pre-existing conditions, age disparity, etc. 

    What I cannot believe is why would they even try to highlight the issue of premiums inflation at all (and why nobody jumped on it).

    They were making the argument that the proposals will make costs higher. In the process, they calculated that, even WITHOUT any reforms, premiums will rise by 80% in the next 10 years (quite optimistic based on the last 10 years - 130% rise).

    80% - their numbers.   How do you solve the problem? 

     I suggest using the solution that the GOP has given us.  Let's see how:  The GOP opposes the public option (even if mandated to run as a non-profit WITHOUT any monetary goverment support) because more people will opt for it, draining customers from private insurers because of lower premiums.  Here is your solution. Thank you GOPers.

    How dumb!  Why would they even mention anything related to out-of-control premium cost inflation.  This is the one area that should rally everybody around doing something to fix the system.
     
  2. You have chosen to ignore posts from movingtarget2. Show movingtarget2's posts

    Re: Insurance lobby... Are they dumb?

    Its a defensive line in the sand.  They concede the 80% (which is unrealistically low) so that anything above 80% is somebody else's fault.  Its just old fashioned politics, making your own shortcomings the fault of the opponent by making a surprising yet insufficient concession.  I know I won't get much support from the nutjobs here, but what I feel is the best solution involves doing away with the entire insurance industry.  Have a 5 tier program for every citizen.  It would work the way a large company might offer different plans targetting different demographics.  Every tax filer gets a credit amount based on # of dependents.  Tier 1 is free.  Tiers 2-5 get progressively more expensive with the cost paid like any other payroll deduction.  The key is to make tier 5 so luxurious that nobody could claim there is a lack of choice.  And honestly, 5 options is more choice than anyone currently gets anyway.  This takes care of the catastrophic care issue for the uninsured and underinsured while allowing people to choose to pay more if they so wish.  But the benefit is that we'd remove all the excess cost associated with having 2+ administrators per doctor.  With only 5 plans instead of 35 million it wouldn't take doctors or their staff much effort to learn the rules of the game.
     
  3. You have chosen to ignore posts from Charles2008. Show Charles2008's posts

    Re: Insurance lobby... Are they dumb?

    I don't think it is a defensive line.  I think they just made a strategic mistake, and anybody for a public option MUST exploit it. 

    Of course, 80% is way understated (based on their own history).  They chose to use the cost of rise in overall medical procedural costs (which is running higher than normal inflation), but historically, they are 60% higher than that.

    I like your plan.  It is too drastic a change, but logical.  Unfortunately, when this sector grew to 1/6th of the economy, it became hard to uproot it in one shot, so it must happen progressively, and allow the economy to absord it over years.

    But. I agree that the amount of overhead in the system, things totally unrelated to healthcare delivery, are outrageous.  These are the costs that makes our system so unsustainable. There are many way to accomplish that, but at last we must start to address it.
     
  4. You have chosen to ignore posts from movingtarget2. Show movingtarget2's posts

    Re: Insurance lobby... Are they dumb?

    I voted for Obama because I wanted drastic.  It is a tough time to remove a few million useless jobs, but jobs are a means, not an end.  People need to not lose sight of this fact, even if tough times.
     
  5. You have chosen to ignore posts from Charles2008. Show Charles2008's posts

    Re: Insurance lobby... Are they dumb?

    It is hard to argue with your proposal. It is clean and logical.  And youc an implement it gradually over 10 years, so my concern is gone.

    But, it is practically impossible to fly.  Even with a self financed Public "Option" to compete with private insurers, you have people (against their best interest) up in arm. I could never see any more mild proposal. And here we go!

    It is unfortunately too easy to BS people into a frenzy. You have people arguing 2 opposite points in the same sentence:  Public option can never be cheaper than private insurers, AND public option is unfair competition to private insurers - go figure.

    But this is democracy.  It is a pretty lousy system, except that it is the best of the alternatives!  :-))
     
  6. You have chosen to ignore posts from movingtarget2. Show movingtarget2's posts

    Re: Insurance lobby... Are they dumb?

    Yeah, I was kind of hoping Obama would just give us the tough medicine and push things through.
     
  7. You have chosen to ignore posts from Charles2008. Show Charles2008's posts

    Re: Insurance lobby... Are they dumb?

    MT,
    Your point about 2+ administrator per HC delivery person is quite powerful, and nobody seems to be using it to argue for putting the reins on insurance companies. 

    They are basically a very significant HEALTHCARE TAX being paid by every american to the insurance companies. And, what do they do for it?  They collect money from everybody, take a portion of it, and pay the rest to the healthcare delivery people. 

    That portion they take keep growing every year as a percentage of the pile.  In the last 10 years, while medical inflation has grown just by 75%, premium has gone up by 130%, even though out of pocket expenses has more than doubled. That spread between 75% and 130% is some of the increase in the percentage of money being taken out of the healthcare system by the insurance companies. 

    This point is so black and white, I have no idea why people struggle to comprehend it (if they are even honestly trying to).
     
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