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So-Called “Medical Insurance” Companies are In Business to Deny Payment

2016-07-02

Here is a quote from an opinion piece in the New York Times that just says it all:

Wendell Potter, a former Cigna executive turned whistle-blower and a co-author of the recent book “Nation on the Take,” says that “insurance companies profit by introducing hurdles in the coverage and claims process.” These hurdles lead some patients to simply give up and pay or forego treatment altogether. He calls this the companies’ business model.

In other words, companies that make their pitch to the public and the government as being in the business of providing “coverage” for health care to consumers are in reality deliberately making it difficult or impossible for consumers to obtain payment for their medical care in order to make a profit.  If these companies were not trying so hard to deny coverage, then maybe their coverage wouldn’t be so expensive.  In  other words, the insurance companies are paying a large number of employees to put up barriers to obtaining care; if they didn’t employ so many people denying care, maybe they wouldn’t have such high overhead expenses and maybe “insurance” wouldn’t cost so much.

I call for a completely different model for the payment of medical costs: all costs are paid by the government, which levies a progressive income tax for this cost.  No one is denied care and there is no one looking to see who is eligible for what care.  Estimates of insurance company overhead for the determination of eligibility run about 30% of total costs, all of which expense is unnecessary if all citizens and resident aliens are covered.  Limitation of costs would be further enhanced by empowering the government to negotiate with drug companies for discounts on covered medications.

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