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WyLoochka

(1,660 posts)

15. Health insurance companies add no value

Reply to chapdrum (Original post)

Sat Mar 19, 2016, 02:33 PM

Mar 2016

They drain value being that they are basically unnecessary duplicative billing offices. As such, they add a staggering amount of inefficiency when one considers it would be much more cost effective to simply use the billing office we already have for folks 65+ - Medicare - and just open it to all of us, cradle to grave.

Medicare operates at around 3-4% admin cost. Before the ACA, private insurance operated at 30-40% admin cost. The ACA required private insurers to improve their efficiencies so as to operate at 20% admin cost.

It was a step in the right direction but that padding of 16-17% to prop up unnecessary, value siphoning, private, for profit corporations is still a huge waste of money that could be better used to pay the actual health care providers.

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32 replies

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Highlight:

Is the participation of insurers in health care immoral? [View all] chapdrum Mar 2016 OP

If they were simply administrators who made sure the books balanced, Ed Suspicious Mar 2016 #1

They have known the insurance system would not work since 1992 Baobab Mar 2016 #24

IMO, yes. ret5hd Mar 2016 #2

Not in and of itself. Buzz cook Mar 2016 #3

but they had the regulation before they joined the WTO. Baobab Mar 2016 #25

YES! Peace Patriot Mar 2016 #4

Yes, if they are "for profit" insurers. Vinca Mar 2016 #5

Unfortunately, most people don't select not-for-profits and a number of cooperatives went belly up Hoyt Mar 2016 #8

collecting money for years and then dumping them with huge bills when they get sick. Baobab Mar 2016 #27

Clearly, yes. MgtPA Mar 2016 #6

As a mental health provider I have seen some things, let me tell you. nolabear Mar 2016 #7

I hate having to deal with my insurance company TeddyR Mar 2016 #9

I've a sibling subject to migraine; chapdrum Mar 2016 #16

Sure TeddyR Mar 2016 #21

That's a really good point. surrealAmerican Mar 2016 #20

That's how they make their money, by denying payment. arcane1 Mar 2016 #26

uh, YES! Dont call me Shirley Mar 2016 #10

Is gambling immoral? Downwinder Mar 2016 #11

Betting that we'll get sick chapdrum Mar 2016 #14

Yes, the health industry is completely wrong and immoral... TheProgressive Mar 2016 #12

Yes because they only exist to deny healthcare and actually provide none of it Dragonfli Mar 2016 #13

Health insurance companies add no value WyLoochka Mar 2016 #15

Medicare billing is handled by private cos, often owned by insurers. There is no Medicare billing Yo_Mama Mar 2016 #22

That sucks WyLoochka Mar 2016 #29

Damn I hated hearing from a right wing nurse that Blue Cross administers Medicare in Texas Jim Beard Mar 2016 #31

Non-profit health insurers are doing a service and are not immoral. pnwmom Mar 2016 #17

Health insurance is just a systemically bad idea, really. DirkGently Mar 2016 #18

I wonder how a cooperative would work? Jim Beard Mar 2016 #32

Absolutely. At least the participation of profiteers. Doctor_J Mar 2016 #19

So what does everyone propose as an alternative TeddyR Mar 2016 #23

It has become so, yes. BillZBubb Mar 2016 #28

Well yes, but they are not alone. Rex Mar 2016 #30