First, I do want to say that I do want some kind of Universal Health Care. With that being said I have many questions that I want answered about the bills that are out there. There are lies and distortions on both sides, and we rational minded people suffer because of the few. I feel as though this bill is more of this idea that if we throw money at the problem it will be solved. I am going to tackle these questions in a two part way. First showing the problems of the insurance companies, and second asking the questions about what these bills do to solve them.
The Insurance companies are making enormous profits. I do not believe this is wrong, I mean that is what is so appealing to so many people about the United States. The boundary is crossed when in the quest for profits companies lower their moral and ethical behaviors. Insurance companies make profits by insuring vast quantities of people. It is a game of numbers. The more people they cover the more money they can make. However, the more people they cover the more risks they take. They take in profits from people who remain healthy and allocate money to people who fall ill or need medical attention. It is not an overly complicated system to understand. People buy coverage plans in case of emergencies and insurance companies take these risks knowing that they may have to pay their clients in said emergencies. The problem going on now is that insurance companies are refusing to take on high risk clients, which they have every right to do. Why would a business take on more risk than reward? Look at the banking collapse of 2008.
The problem with the insurance companies is that they are now playing a very dangerous game. In their quest for more profits are backing out on their own deals. For example the Washington Post gives us:
The Department of Health and Human Services put a spotlight on that practice Tuesday in its continuing campaign to build support for an overhaul of health insurance.
“When a person is diagnosed with an expensive condition such as cancer, some insurance companies review his/her initial health status questionnaire,” the HHS said in a posting at HealthReform.Gov. In most states, insurance companies can retroactively cancel individuals’ policies if any condition was not disclosed when the policy was obtained, “even if the medical condition is unrelated, and even if the person was not aware of the condition at the time.”
“Coverage can also be revoked for all members of a family, even if only one family member failed to disclose a medical condition,” HHS said.
The department cited recent research by the staff of the House Committee on Energy and Commerce, which found that three large insurers rescinded almost 20,000 policies over five years, saving $300 million in medical claims. “
This is where Insurance companies go wrong. Though the number (20,000) looks small relatively, think of what you would say if it happened to you or a family member. I am reminded of the movie The Incredibles when I think of what insurance companies are doing to consumers. In the movie Mr. Incredible works for an insurance agency, and when confronted by an elderly patient about why her bills are not being paid, he acts as if he knows nothing. Don’t worry, being the nice guy that he is, he provides her with a confusing array of forms to fill out- an Olympian task for an elderly lady. We live in a world of paper work. Though so much is digitalized now, it is still a confusing task to do. In the way people struggle with the rubix cube, people struggle with the challenges of filling out the correct paper work, and even just finding the correct paper work. Do we need something so complicated for something as simple as checking if someone has the correct plan and just covering it?
A problem with insurance companies is they lack the motivation to improve the care they give to their customers. The companies have no reason to change their practices and so continue to give mediocre care, because they know people have no were else to go. Most people are not in charge of their insurances, as they get it from their work. Companies chose the plans, which they believe, are most affordable and best for their workers and make very few changes in these plans. The health care companies do need more competition, which is why the public option may not be a bad idea. My concerns about the public option idea will be covered later though. Changes need do need to be made I just want to make sure we make the right ones.
Preventative care is praised, but very few insurance companies seem actually practice it. Look at an auto insurance company such as Safe Auto. Many car insurance companies reduce costs yearly for people who: practice safe driving, take safety seminars, and avoid accidents. These incentives encourage people to do better for monetary gains. I see no reason why health insurance companies cannot having many of the same standards. Discounts for people who: stay healthy, exercise, and stop smoking.
In the book Predictably Irrational by Dan Ariely, he offers many interesting suggestions for insurance companies to consider. In the chapter “The cost of zero cost,” he presents experiments in which he shows that people are much more willing to go for the thing that is free, even when the alternative may be a better deal. He shows this with Hershey’s Kisses and Lindt truffles. Lindt truffles are much more expensive and trust me, much better candy then the rather ordinary Hershey’s. In his experiment he made the Hershey’s 2 cents for one and 27 cents for the truffle. 73% of the people chose the truffle. In a repeated experiment he made the Hershey’s free and the Lindt 25 cents. The difference was the same and yet this time 69% chose the Hershey’s. In the book you can see that this experiment was done several times and in many different variations to many different people. The idea is simple though: make something appear free and more people want it. Mr. Ariely explains that this is something that could be replicated by the health insurance companies. As he himself says, “Don’t just decrease the costs (by decreasing co-pay). Make these critical procedures FREE!” (pg.62-63). The critical procedures he refers to are checkups such as colonoscopies and mammograms. Insurance companies could increase yearly costs by some small amount, and make most co-pays free. Doing this, along with offering incentives to get these tests done, would make people much likely to go visit their doctors. I recently went for a contact lens exam and the co-pay was around 60 dollars. Now my eyes had no real change and very little was done that necessitated the need for such enormous co-pay.
The business plan of the health care industry is something that I do not get. Doing some very simple things for their consumers creates loyalty, and prevents larger costs in the future. Would these steps crumble the companies? No. In fact, these steps do nothing more than lower the company’s bottom line costs. Catching things early leads to easier treatment and is better for the company and the person. It is a simple concept and the only reason I can think of that they would not want to try new ideas is that they just do not care.
Now for the questions about the health care bills.It is the job of news agencies, Congressmen, and the president to explain TRUTHFULLY what is in the bill. Town halls filled with wildly misinformed people do not help anyone and only anger the people who this bill is trying to help. While Fox News makes excuses for the disrespectful people and spreads the absurd lies, MSNBC also looks at the bill through distorted eyes and tells me it is perfect. What I want is answers to the hard questions. Questions such as:
- Will the bill be paid for completely? It is hard to believe that it will not cost us a dime, and the government’s own statistics prove that to me. Though Obama keeps saying it will be, the Congressional Budget Office, the Committee for a Responsible Federal Budget has cast doubts on just how, and if this could be done.
- Does this bill look enough at preventative care?
- Payment at hospitals seems to be out the roof because of things such as hospitals not using generic drugs, having huge overhead costs, etc. Will the bill try to solve any of these problems?
- Will the option really force companies to compete? Though I understand the option is not a government takeover, I ponder whether it will really force insurance companies to treat their customers better.
- What regulations are in place to prevent major companies from dropping their coverage and instead just increasing salaries so people can get the cheaper, better government option.
- What exactly are all the coverage options available, and at what price?
- Are there really no better options?
- If there are so many bills, how can we debate the facts when different bills can say many different things. Factcheck.org says that though Obama promises the plan would cover 97% of Americans, only one bill in Congress would actually do that, and the other bills would cover far less.
As I said at the beginning of this article, I truly do want people to be able to get good affordable health insurance. The problem is that this is a very tough issue to tackle, and one that needs people to ask real questions and give real answers. Both sides seem to agree that the health care industry does need to be reformed, but agree against these bills because of their problems with the public option. These bills seem to take on an enormous task, that may just be too tackle in one bill. I do not see why we cannot go back and split these into two bills. Reforming the health care companies will be done in the first bill. This should pass easily if both sides of the aisle stick to their promises and want change. The second will the larger project of creating good, basic options for the people who cannot afford the prices of the insurance companies. Yes, this may take some more time, but for something so serious that would change so much, I think it is time well spent. I am glad a bill was not passed before this break. Health Care is a herculean task to tackle, and sometimes cutting away at something little by little is an easier way to win rather than trying to take down the whole thing at once.