A bit of a news focused rambling for today…
First up is this article. (Full Disclosure: I work for a Health Insurance company) I can’t understand why health insurance companies get such a bad rap when it’s Doctor’s fees (which is really the fault of the Malpractice Insurance industry), overuse of unnecessary procedures (radiology is a huge culprit here, you sprain your ankle and you get an MRI instead of just taking an aspirin), and the pharmaceutical industry. The amount of administrative fees that an insurance company charges hasn’t dramatically increased, but the medical costs certainly have. That article is a great example of why health care is so expensive. When a company charges $2000 when a $100 alternative might provide the same benefit, who picks up that cost? We all do. Health insurance is a socialist system of shared risk. Us healthy folks pay more than we use to support those who aren’t as healthy. And for those folks who point to folks like Dr. Bill McGuire as the poster boy for why health care costs are increasing, you couldn’t be more wrong. Dr. Bill pocketed the money of investors. His monster stock options didn’t take a dime from the premiums that are paid by the millions of people who are covered by UnitedHealth Group, it was money that was invested in the company from the millions of shareholders.
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