Archived posting to the Leica Users Group, 2003/03/02

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Subject: Re: [Leica] RE: Leica Users digest V24 #131
From: Jim Hemenway <Jim@hemenway.com>
Date: Sun, 02 Mar 2003 09:40:21 -0500
References: <000001c2e09e$530423b0$7c98fea9@ernie>

Ernie:

This is what I've suspected since 10 or so years ago, when the insurance
companies successfully fought off the Clinton'e attempts to bring some
rationality to the health care business.

- -- 

Jim - http://www.hemenway.com



"Ernest B. Ferro" wrote:
> 
> Austin and Buzz:
>         Hopefully you won't mind me butting in here but I can't resist
> putting my two cents in.  I'm on the board of our local hospital.  We're
> a rural hospital located in NW PA.  One of my responsibilities is that
> I'm also chairperson of the finance committee.  So, I know a bit about
> what gets billed and where the money goes.  In addition, I also own a
> business that provides group insurance to their employees at no cost to
> the employee. So I also know a bit about insurance costs.
>         You ask who gets all the money.  The conclusion to which I've
> come is simple.  It's the insurance companies.  Since I see both sides
> of the equation, the hospital and doctor side and the business owner's
> side, I'm sure it's the insurance company.  Our hospital recently
> received an increase of $500k annually in malpractice insurance
> coverage.  Do you know what our malpractice claims have been for the
> last 5 years?  They've been zero.  So, who's getting the money?
>         We recently renewed our group insurance coverage at my company.
> It went up 47% from last year to this year.  This is typical in our area
> no matter whether the employees have overused the insurance or not.  How
> many companies do you know that can raise their prices 47% in one year?
> We supply primarily to the automotive industry and our prices have been
> in a downward spiral for years.  On the other side of the coin, I see
> the hospital reimbursements.  They've gone from 53% of every dollar
> billed when I joined the board 7 years ago to about 48% today.  So,
> insurance costs are up but reimbursements are down.  Figure that one
> out.
>         People complain about the bills that they get from their doctors
> and hospitals but what the doctor or hospital actually receives in
> reimbursement from the insurance companies is considerably less.
>         Well, I'm contributing to the OT chatter on the list so I'll
> sign off now but just had to get my two cents in.
> Ernie
> 
> >Hi Buzz,
> 
> >> I am not sure what you mean, Austin.
> 
> >It's quite simple.  You said the doctor got only $2k.  The overall
> billings
> >to the insurance companies are far more than $2k.  Who gets all the
> money?
> 
> >> The hospital gets about four to
> >>five grand for the birth, laboratories collect another one and a half
> to
> >> two thousand.  That's about it for normal prenatal care and a
> moderately
> >> complicated delivery.
> 
> >Hum.  Our two routine births were a hell of a lot more than that!
> 
> >> My point is, what's your M6 or M7 worth to you in terms of other
> aspects
> >> of your life about which one may or may not complain?
> 
> >But on the other hand, births are a lot more common than M7's ;-)
> 
> >> For those among
> >> us with stents, was your heart procedure worth as much to you as a
> >> camera?
> 
> >I feel that's a useless metric, and that isn't meant insultingly at
> all,
> >just stating what I feel.  Of course life issues are far more
> important, >but
> >what does money have to do with level of importance?  Should you pay a
> >mechanic $20k to do brakes on your car, because if he doesn't, 6 people
> may
> >die?  Certainly a brake job is more important than M7 to some, but that
> >doesn't mean it should cost more!
> 
> >Regards,
> 
> >Austin
> 
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Replies: Reply from "Nathan Wajsman (private)" <nathanw@bluewin.ch> ([Leica] Re: greedy insurers)
In reply to: Message from "Ernest B. Ferro" <ebferro@ebferro.com> ([Leica] RE: Leica Users digest V24 #131)