Monday, October 19, 2009

Insurance Industry "Study"

Here is a surprise: The health insurance industry conducted a study that concluded health reform will increase premiums. Interestingly, they told the accounting firm that conducted the study that it was only permitted to look at four factors. The accounting firm makes note of this fact. It concludes that because of the limitations placed on it by the insurance industry the report is only as good as what it studied. This week the President attacked the industry for being dishonest. He threatened to remove the industry's protection from the anti-trust laws. Did you know health insurance companies were not subject to anti-trust laws? Small wonder there is no competition.

Thursday, October 15, 2009

Senator Joseph Lieberman And The Public Option

Senator Lieberman made it clear on October 14, 2009, that he is firmly opposed to any health care reform bill with a public option. So why doesn't Senator Lieberman give up his publicly funded health insurance and go out into the market place and purchase private health insurance for himself and his family? Senator Lieberman can be reached at: lieberman.senate.gov/contact

Friday, October 9, 2009

Trial Lawyers and the Cost of Health Care

If trial lawyers are the cause of the high cost of health care, and Tort Reform is the answer, then why does McAllen Texas have the most expensive health care in the nation? Texas has some of the most restrictive legislation regarding malpractice claims in the nation. Yet, in McAllen Texas the cost of medical care in nearly twice the national average. Why? The answer is simple: over-utilization. Who benefits? Doctors who are compensated for procedures not care. They are the ones being rewarded. Defensive medicine cannot be blamed because malpractice claims have been virtually eliminated as a result of the legislative limitations. As the health care debate continues and and the red herring of malpractice is paraded as the problem, remember McAllen Texas. Michael Quinn, Esq.

Wednesday, October 7, 2009

Insurance Company Profits

Should health insurance companies be not-for-profit or for-profit entities? The theory is that profit increases competition, innovation and is generally beneficial to the general good. This idea certainly makes sense for computers and cars. In those industries risk and innovation result in benefits to the consumer and reward the stock holder. General Motors is a perfect example of what happens when, in a competitive industry, there is a lack of innovation.
Health insurance companies have no interest in innovation and risk. This is why they attempt to insure the healthy. Medicine, by contrast, has an interest in innovation and new therapies. As a result, the entities that fund medicine are at odds with medicine, because innovation often increases cost, at least in the short run. Today 23 cents of every insurance premium dollar represents profits and the cost of advertising. It has nothing to do with patient care. This is why the health insurance carriers are so opposed to a public option. Once the 23% profit margin is removed, the public option could provide the exact same benefits for twenty-three percent less without reducing care or doctor compensation. Michael J. Quinn, Esq.