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The formula is clear – Profit is expensive

The formula is clear – Profit is expensive February 22, 2013

Marketing, research and business development consultant in healthcare, human services and senior living.

A recent OpEd in the economist suggests that some features of “Obamacare” don’t go far enough to control health insurance costs.

http://www.economist.com/blogs/democracyinamerica/2013/02/obamacare-0

Health insurance costs are the result of several factors, not the least of which is the profit requirement within the insurance sector. It’s no accident that many of the major buildings and much of the expensive capital infrastructure in the United States major cities are named after insurance companies!

T..R.Reid in his terrific book, The Healing of America: a global quest for better, cheaper, and fairer healthcare, highlighted some of the simple but almost impossible things that would need to be done in the United States in order to really alter the cost structure to the government and American consumers. One of these is to change the health insurance system from for-profit to not-for-profit. Unfortunately, this idea while extraordinarily sound and simple is a non-starter. ACA does intend to help bend the premiums cost curve by encouraging states to be more aggressive with proposed health insurance premium increases. In states with strong insurance commissioners, this is feasible. Alas, in too many states, the health insurance commissions are simply not up to the task.

 

Marketing, research and business development consultant in healthcare, human services and senior living.

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