The $4,284 Monthly Premium

The title to this post is the title to an article at Consumer Reports. You would enjoy the article. The following excerpt is a sample of the exciting information you'll get.

"Companies also control their risk by using a maneuver known as closing a block or book of business. They stop accepting new customers in a plan, which kicks off a process known as a "death spiral."

I love the use of the word death when referring to health insurance. Enjoy the read and relax in the knowledge that insurance companies are truly working on our behalf.

Wana Buy a Car?

Consumer Reports magazine has a great series of articles about health insurance. One of the articles starts with the following.

Imagine that shopping for a new car worked like this: If you really didn't need the auto and lived two blocks from work, any dealer would sell you a car for a song. If the commute was 50 miles, much too far to walk, no one would sell you a car at any price. You wouldn't get to see a full contract until you plunked down your cash. Your monthly car payment would go up 20 to 30 percent every year, and, by the way, the steering wheel might be extra.

If you don't recognize this, thank your lucky stars but be aware that it might be short lived.

Are You Really Covered?

I thought this article Are you really covered? was very interesting. I especially enjoyed the comment following the article. Of course, the article is asking whether our health insurance covers us when we need it. I found that the article is composed of excerpts from several articles in Consumer Reports. I think we can trust the source.

Give it a read.

Which System Has the Lowest Health Care Administration Costs?

Which costs more, health care administration in the Canadian single payer system or the system we enjoy here in the United States? This article, Costs of Health Care Administration in the United States and Canada (click on title to read), published in the New England Journal of Medicine answers the question. On page 772 (the article, pages 768 through 775, is excerpted from the Journal) you will find a section labeled Discussion. Read that section to find the conclusion.

The Republican candidates are saying that free enterprise will drive down the cost of health insurance. In order for insurance costs to go down, I would think that administration costs are going to have to come down. Our health insurance industry has been operating in a free enterprise system for over six decades now. I would think that any influence the free enterprise system would have has happened. Of course, changes could be made such as passing legislation to allow insurance companies to operate country wide. That has been suggested.

Wouldn’t that be something? I have health insurance from Blue Cross Blue Shield of Florida. I could the buy it from Blue Cross Blue Shield of Massachusetts. Did you know that Blue Cross Blue Shield is a franchise? I wonder if Blue Cross Blue Shield of Florida would have a problem with other Blue Cross Blue Shield franchisees opening in their territory. There are 39 independent Blue Cross Blue Shield franchiseees in the United States. Does Blue Cross Blue Shield allow this in their contract with the franchisee?

As I hear it, more insurance companies operating in this country will mean more competition which will drive down the cost of insurance. That makes sense. Now that we have an agreement, please read the section labeled Discussion. Maybe I got it wrong.

Gone Too Long

I apologize for my absence. I have been sick for some time but I'm back. A lot has changed since I last posted. It all started months ago but I want to bring you up to date and tell you what will be happening over the next four months.

I have started a corporation named FYI the Truth, Inc. The following is the first draft of the Executive Summary of the corporation. Tomorrow I'll tell you more about the organization and give you a timeline of our activities up to our "coming out" awareness event.

The Issue
The prevailing culture in America is one of dishonesty, lack of respect, selfishness, and refusal to be accountable. It’s not the most prevalent, it’s the most dominant. We have politicians who spend large amounts of our money on projects that have no benefit other than to ensure their re-election while important social issues that need to be addressed languish. We have industry leaders who tell their employees that profits are up while they’re selling their shares knowing the company would soon be filing bankruptcy. Self interest and lack of courage has become the most common characteristic of leaders from the classroom to the boardroom.

The Solution
The vision of FYI the Truth is to create a culture in America conducive to the values of honesty, respect, selflessness, and accountability. The mission of FYI the Truth is to educate the public on social issues so that every American has the information they need to make informed, responsible decisions. We believe that presenting all the facts about an issue will create an atmosphere in which leaders feel compelled to consider the common good rather than their own self interests.

The Strategy
Our primary method of communicating with the public is our web site. The website will contain text and videos discussing all the facts relating to social issues affecting our population. The web site will be enhanced by awareness events, speaking engagements, and conventional media. The first awareness event will be a bike ride from Estero, Florida to Tallahassee, Florida. The ride will be completed using a hand cycle powered by Richard Willett, founder of FYI the Truth. Rich had polio as a child and must use a hand powered cycle.

We will publicize the ride to radio, TV, and newspapers in Southwest Florida. During the ride videos will be taken and posted on the web site. The videos will be of Rich discussing our first issue, health insurance. Before, during, and after the event speaking engagements will be scheduled to describe the organization and the issue of health insurance.

The History of Health Insurance In the US: Part 1

This will take more than one post because it's a long history and believe it or not it's actually quite interesting. The concerns and problems relating to health insurance haven't changed in the past 100 years. Here we go.

• National health care systems started in Europe with insurance laws put into effect in Germany in 1883.
• By 1912, most European nations had passed national health care legislation.
• By the end of the 19th century, medical care in the US shifted from the home to the doctor’s office and the hospital raising the cost of health care thus increasing the need for a system to pay for medical care.
• In the 19th and early 20th centuries, there were six forms of health insurance available. They were fraternal societies, contract physicians, private physician plans, county medical bureau plans, hospital service plans, and group insurance plans offered by private insurance companies. At that time, a very small percentage of the population purchased any health insurance.
• In 1913, the American Medical Association (AMA) stated that only about 10% of America’s doctors were making a comfortable living.
• In the early 20th century, the general opinion of the American people and the AMA was that some form of mandatory health insurance was necessary but for different reasons. The American people needed a way to pay for medical care because the majority of the population couldn’t afford treatment. The AMA wanted to raise physician’s income.
• During this time the general belief was that the federal government was responsible for providing for the betterment of the masses.
• The drive for mandatory health insurance didn’t come from the government. It came from the American Association of Labor Legislation (AALL). The AALL was formed to address the dangerous working conditions in many industries. After successes in their legislative attempts, the AALL turned their attention to mandatory health insurance. The AALL suggested a health insurance plan that was supported by the employer (40%), employee (40%), and the government (20%).
• In 1916, the AMA formed the Committee on Social Insurance that supported health insurance legislation.
• In 1916, the AALL chose to attempt to pass health insurance legislation at the state level. They selected Massachusetts, New York, and New Jersey as trial states. The bill proposed in New York was opposed by the medical community because it opposed the fee-for-service principle, patients couldn’t choose their own physician, and the plan put the state rather than the physician in control. The problems were resolved and an insurance bill was passed by the state legislator.

Doesn't some of this sound familiar?

Health Insurance - Why So Expensive?

Yesterday’s post was a long one so you deserve something a little more entertaining. The link below is to an article on the Consumer Reports web site. On the left side of the page there’s a number of articles you can read that you’ll find interesting. The articles will give you a clue to why health insurance is so expensive. Enjoy the articles.

http://www.consumerreports.org/cro/health-fitness/health-care/medical-ripoffs-11-07/overview/medical-ripoffs-ov_1.htm

Health Insurance and Diabetes - They Don't Mix

Today I read a post on a blog site I read every day. The title of the post is So this is highly disturbing…. The blogger, Wil, is the coordinator for a community health center in Northern New Mexico. The post is about a patient of Wil’s that’s passed over for a job because he’s a diabetic. They were concerned with the impact his disease might have on the cost of their health insurance.

The company is a small nonprofit so I understand their concern. HIPAA requires group health plans to cover all eligible employees, regardless of health status. I support HIPAA but I understand the consequences. HIPAA solved many problems but it didn’t go far enough. We make patches but we’ve yet to look at the entire problem and fix it. Massachusetts decided to solve the problem and came up with a solution. Other states have done the same. I see the leaders in those states as people willing to do what’s right not what’s easy or popular.

Read Wil’s post and you’ll read about one of the ugly realities of the health insurance industry. This and every other inequity must be resolved.