Thursday, September 09, 2010

For-Profit Private Insurance Company Had Over One Million Law Violations.

There is something very wrong with the concept of making enormous sums of money off of health insurance. We used to have nonprofit insurance companies before the Republican party created this monster. And of course, the equally ridiculous Democrats agreed.

Insurance is a bureaucracy. All insurance companies do is administer policies. It's administration for god's sake. One more time. A-D-M-I-N-I-S-T-R-A-T-I-O-N. We pay people in the government $50,000 a year to administer insurance. We pay people $8 an hour to administer your order for a Big Mac and Coke at McDonalds. How in the name of sanity and reason did CEOs and senior officials at health insurance companies ever get $400 million retirement packages and $20 million annual compensation packages for administration?

The only way to drive profits for a health insurance firm is to increase efficiency, most often at the expense of health care services and quality of care or deny coverage to consumers of health care services or jack up rates. None of these profit drivers are aligned with superior health care. This dynamic is all part of the financial industry's unsustainable bubble.

One may argue that health insurance is or is not necessary as an industry but whatever solutions society would choose, it is purely overhead. It is administrative tax on society's health. Doctors, nurses, health care professionals and support personnel are healers. They have a skill that society demands. Insurance companies on the other hand are like Wall Street. They are usury. They insert themselves in the supply chain for services from productive assets in society and extort their slice through control. And without government enforcement of competition and regulation, they have been stealing one hell of a big slice via morally-bankrupt means.

We don't even need health insurance in this country. Mathematically, it restricts the free flow of capital and creates supply & demand and therefore pricing aberrations. Or as we wrote years ago, it's a racket in the true sense of the word and that's why Warren Buffet loves owning insurance companies. There are better and cheaper methods than insurance companies that serve consumers of health care services and health care professionals. And more importantly, that would serve economically disadvantaged citizens with some modicum of human dignity. But that type of reform isn't likely to happen. So, the government ought to be incenting insurance companies to become not for profit or making economic rules which would create a vibrant market for not for profit health care to drive these corrupt beasts to change or go the way of the Dodo bird.

title link also here.
posted by TimingLogic at 5:50 AM

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