The health insurance industry: Is it really that good? (1 Viewer)

I'm not talking about healthcare providers (e.g. doctors, dentists. etc.).  I'm talking about the companies that stand between you and the healthcare providers.  My experience, and others in my circle's experience, is that it's a frustrating nightmare to deal with them.  They're disorganized, inefficient, and most of all incentivized not to actually provide benefits.  More and more I see or hear coverage being declined or having to spend hours on the phone to get them to provide benefits.  I can't be alone here.  Why are many so desperate to keep this industry alive?   It's as if your local police department was a for profit organization whose only incentive was to provide good returns to shareholders.    

The health insurance industry is a necessary institution that has becoming a financial drain on the system as a result of bad combo of corporate greed and government regulations.

It was becoming a nightmare before the ACA, but that simply accelerated after ACA (which I've always expected was the goal).

As a result, even as a conservative, I believe our best course of action at this point is a universal healthcare or single payer system.  The income from simple rent seeking activities within our healthcare system has become an enormous drain on our economy.

We talk about not wanting government in our healthcare. For the life of me I don't understand preferring an unelected profit driven capitalist executive in charge of our health care. It's like a casino. They get the vig on every single interaction. I do the insurance for my company. BC/BS gets 15% of the action. What possible motive would they have to drive down costs? 

The profit motive and health insurance/health care are completely incompatible in my mind. Like for profit prisons.

The only possible rationale might be they are more efficent because business or something. But they are far less efficient trhan medicare. 

We already have death panels. Corporations. 

Employer based health care is preposterous.      

Define "good". 

Good at what?

2Squirrels1Nut said:

Define "good". 

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This also.

I was hoping those who beat the "you just want socialism" drum would chime in.  I'm looking at you @TripItUp

Jackstraw said:

The only possible rationale might be they are more efficent because business or something. But they are far less efficient trhan medicare.    

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This is my main contention.  It's one thing to say, "government is costly and inefficient and the private market would do it better."  I don't think you can point to our health insurance industry and say that though.  

Business travel day for me fellas.

have no fear, I will return

If govt healthcare is run similar to the VA, you don't want that. Talk about unorganized and inefficient. Many of those locations a nightmare to deal with.

VA healthcare also differs from private in how hard they want to try. VA gets nothing for running you through 20 tests and at times will write a patient off that nothing is wrong with them. 

Private care can be the opposite and run you through 20 precautionary tests just to "be safe"... aka bill your insurance.

Max Power said:

If govt healthcare is run similar to the VA, you don't want that. Talk about unorganized and inefficient. Many of those locations a nightmare to deal with.

VA healthcare also differs from private in how hard they want to try. VA gets nothing for running you through 20 tests and at times will write a patient off that nothing is wrong with them. 

Private care can be the opposite and run you through 20 precautionary tests just to "be safe"... aka bill your insurance.

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Or the insurance company can simply deny you treatment for say cancer.

Medicare gets far higher patient ratings than private insurance.

Jayrod said:

As a result, even as a conservative, I believe our best course of action at this point is a universal healthcare or single payer system.  The income from simple rent seeking activities within our healthcare system has become an enormous drain on our economy.

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Absolutely. Even if you set aside the human issues.

The amount of innovation, economic freedom, and small business entrepreneurship that’s being stifled alone solely because people need to stay with giant multinational corporations to keep their health insurance is staggering. 

Jayrod said:

The health insurance industry is a necessary institution that has becoming a financial drain on the system as a result of bad combo of corporate greed and government regulations.

It was becoming a nightmare before the ACA, but that simply accelerated after ACA (which I've always expected was the goal).

As a result, even as a conservative, I believe our best course of action at this point is a universal healthcare or single payer system.  The income from simple rent seeking activities within our healthcare system has become an enormous drain on our economy.

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I'm a far lefty and totally agree with this... they funded a lot of O's campaign and got handsomely rewarded.

Our insurance was tolerable before the ACA, after it only benefits us in the case of an extreme emergency

NCCommish said:

Or the insurance company can simply deny you treatment for say cancer.

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Like this poor guy

In MN, health insurance plans are non-profit. It may not address all of the issues people bring up, but it goes a long way in regards to muting the profit driven capitalist executive and provide good returns to shareholders type of talk. 

Captain Cranks said:

I'm not talking about healthcare providers (e.g. doctors, dentists. etc.).  I'm talking about the companies that stand between you and the healthcare providers.  My experience, and others in my circle's experience, is that it's a frustrating nightmare to deal with them.  They're disorganized, inefficient, and most of all incentivized not to actually provide benefits.  More and more I see or hear coverage being declined or having to spend hours on the phone to get them to provide benefits.  I can't be alone here.  Why are many so desperate to keep this industry alive?   It's as if your local police department was a for profit organization whose only incentive was to provide good returns to shareholders.    

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This is the key. Insurers are motivated by profit, not maximizing health. They constantly change the rules to increase the chance providers don’t optimize reimbursement, yet don’t keep up to date with evidence based standards of medical practice. But they create a lot of high paying jobs for the scores of unnecessary middle people perpetuated by the industry.

Max Power said:

If govt healthcare is run similar to the VA, you don't want that. Talk about unorganized and inefficient. Many of those locations a nightmare to deal with.

VA healthcare also differs from private in how hard they want to try. VA gets nothing for running you through 20 tests and at times will write a patient off that nothing is wrong with them. 

Private care can be the opposite and run you through 20 precautionary tests just to "be safe"... aka bill your insurance.

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I had VA health care for the past year and I have to say the care was really good.  Tests that were ordered were carried out quickly.  The problem with VA I found out yesterday is that it it is now income based and that I make over the threshold of 41,000 for a family of three. The rules changed in 2003 and if you were not signed up by then you didn't get the benefits you were promised when you enlisted. Thanks George W. way to look after the Vets.  Looks like I am going to have to go without health insurance for the next two and a half years until I turn 65.

KiddLattimer said:

Like this poor guy

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Yeah I had just seen that before I dropped in so that's what I was thinking about.

Bottomfeeder Sports said:

Good at what?

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The reason I asked this question is simply because most people are either insured by the government and/or their employer.  I don't mean that your employer pays some portion of your health insurance but that except for small businesses your employer is likely assuming the financial risk for the health of its employees by self funding the coverage.  The same for most government programs.  Even if the "insurance" is provided through an insurance company.    For the most part the health insurance companies don't really provide insurance but provide administrative services for others.  The primary exceptions being small businesses and individual coverage - or the areas most dysfunctional. 

So if the question is about how good health insurance companies are at providing actual health insurance then I'd think the mass exodus from the individual market means they aren't very good at it any longer.

If the question is about how beneficial it is to have them administer these government and employer plans?  In our current system they probably provide a service that is needed, but I don't think they provide much of a mechanism to reign in cost or improve health as much as to maintain the status quo.  

So depending on what the question is asking