Your insurance costs are going up because the cost of
medical care is going up, and here’s why. Insurance makes the problem worse
adding an extra 20% or more overhead and profit to the already ridiculously
high prices of healthcare.
Health Insurance is
not insurance at all.
When you buy health insurance, you are essentially prepaying
for healthcare services using large bureaucratic companies. The cost of this
“insurance” includes all of the overhead that healthcare providers
have to pay for in order to qualify for the payments from these companies.
Here’s an example. When I was a standard insurance doctor,
we needed several staff dedicated to calling the insurance companies in order
to obtain payments for work we had already done. We had to have expensive
electronic health records whose purpose is purely theoretical – the reality of
these electronic health record systems is that they are distracting, expensive
and all but useless for taking care of individual patients. Furthermore we also
had several staff members dedicated to calling insurance companies in order to
obtain “preapproval” for ordering tests or proceeding with surgical treatments.
“Wow, what a con”
I even had several occurrences of the insurance companies
denying payment for a procedure for which I already had preapproval.
They made it very clear that just because I got preapproval does not mean that
I will get paid for the test or treatment. All I could say was “wow, what
a con”. I cannot for the life of me discern how any insurance company could
help a patient’s wrist fracture get better quicker or hip bursitis heal faster.
Imagine if car
insurance were like health insurance
Insurance in the true sense of the word is meant to guard
against expensive, catastrophic and rare events such as home damage or major
car accidents. Imagine how costs would shoot through the roof if car insurance
paid for every gasoline fill up. Initially people would love it saying they
“don’t have to pay for gas anymore”. The insurance companies would
simply pay for the gasoline with a 20% overhead charge looped back into the
individual car owners’ premiums. People would then realize they could drive as
much as they want and costs would go up again.
Insurance companies would then try to combat this increase
by restricting the number of gas stations their insured drivers could go to.
Individual drivers would then have to drive further to go to specific gas
stations. The lunacy would be obvious. However, getting people to pay for gas again
directly would still be difficult. They would have become used to “not paying
for it”. Human nature makes it difficult to want to pay for something you were
getting for “free”. The fact is, it was never free and neither is
anything in healthcare.
Costs and risks going
Bureaucratic red tape and compliance keeps adding to cost of
your healthcare. Some doctors have even begun to hire scribes to do the
computer entry for them. This increases costs again and adds to the potential
loss of confidentiality. Healthcare computer systems have been hacked over and
over again. Some of the largest hacks in history have been to healthcare companies
and costs to try to decrease this risk are simply again looped back into your
There is an answer
Direct Access Doctors. Doctors who believe in the principle
of a patient/doctor relationship. It’s
less expensive, more effective, and more efficient. Paying directly simply
takes out the middleman, the overhead and ridiculous requirements that only
enable these companies to keep tabs on what physicians are doing.
The insanity continues and will continue until people
realize direct access doctors who allow and accept only direct payments from patients to their doctor is the cure. Costs
plummet and insurance becomes insurance again to protect individuals from
catastrophic events not every day occurrences.
was founded on a simple principle: Affordable healthcare where the doctor is
beholden to the patient, not the insurance companies.