And so it begins; make my premiums “affordable” but don’t make changes that affect me

Still think you can have it all like high quality health care, keeping your own doctor and affordable health care? Dream on my friend. It appears the reality of what it takes to manage health care costs is starting to become clear (to those who didn’t already know).

Back in the eighties we tried HMOs, capitation payments, closed networks, limited choice in exchange for minimal out-of-pocket costs and people screamed. Plans were skimping on care, doctors treated HMO patients like second class citizens we were told … at least I was told that when managing seven HMOs. A women actually wrote a book, “The HMO killed my Daughter.”

Enter Barack Obama who made numerous promises of health care nirvana; affordability, $2500 in lower costs, keeping what you like and of course, quality. Were only all that simultaneously achievable. At the same time we have the conservatives screaming about what the Medicare Independent Payment Advisory Board will do. It’s the same thing; managing costs.

Kaiser Health News: Narrow Networks’ Trigger Push-Back From State Officials
Kaiser Health News staff writer Jay Hancock, working in collaboration with PoliticoPro, reports: “Officials in at least a half dozen states are pushing back against health plans in the new insurance markets that limit choice of doctors and hospitals in a bid to control medical costs. The plans don’t start offering coverage until January but they’re facing regulatory action, possible legislation, and in at least one case involving a high-profile children’s hospital, litigation. The pushback against ‘narrow’ provider networks recalls the backlash against managed care and health maintenance organizations in the 1990s” (Hancock, 11/25).

Recall all the rhetoric about competition, well this is what competition in health care looks like. Unless an insurance company can have a tight network and the leverage to negotiate lower prices, premiums are not going to be lower!

The solution? More laws and regulation to force insurance companies to do exactly the opposite of what needs to be done … because consumers want what politicians promised … more of everything at a lower price.

One comment

  1. So long as people keep voting for individuals based on their promises … a la President Obama … versus their demonstrated capabilities to lead the debate, country, etc. you will get what we so richly deserve. Remember Dick, the shortcomings in terms of cost, breadth of network, value of benefits, etc. is NOT the result of the PPACA design components/structure/provisions. It is because of the insurance companies and corporations who refuse to comply with the law’s demands that more be spent on health coverage … funded with other people’s money.

    Soon, I am sure we will hear that it is also Bush’s fault – for this Administration, every other failure is placed at W’s feet.

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