Judas Maccabeus wrote:You actually prove my point here. That 20% they take IS part of the problem. No other industrialized society would put up with this. Common estimates for Medicare range between 3% (From it's advocates) to 5.5% from it's detractors, still it is better than 20%. Remember, that 20% (or 15% percent, I will gladly concede) does not go to treating a single patient, paying a single bedside nurse, or buying needed medication. It goes to maintaining an administrative machine that frequently PREVENTS good care. Care denied drops to the bottom line.
+/- 20% does not make a big impact in care. It's 20%.
I am sure you know what a "Pre-auth" is, for others it is the insurance company deciding what treatment you can have, regardless of what your doctor thinks. Denials, and hence denial of good care are far too frequent. I will not give you examples from my professional life, but I will give you one from my personal life instead.
Myself and one of my close friends have a couple pre-auths out on us. Doctor's office requested it, it got approved within a day or two, prescription filled.
Same story for a neurological MRI. Insurance preauth was the easy part. Hard part was finding a provider who could take an appointment. Ended up waiting 4 months to get an appointment (an earlier one got cancelled because the whole office was closed due to COVID.)
One of my friends from the mission field had symptoms of trigeminal neuralgia. Tests confirmed this, his neurologist wanted to refer him for surgery. Preach was declined, and the insurance mandated treatment with medication and PT instead. Neurologist tried again, after this had failed for 3 months, then again at 6. Denied. Fortunately, his wife was Austrian, and had residency in Austria. Got on a plane, got an appointment at the teaching hospital. Diagnosis, trigeminal neuralgia, he said he told them about the treatment he had in the states. Answer-"That will never work, you need surgery." Was booked in 3 weeks, and the surgery relieved his symptoms.
So if you think our system is wonderful, and that the insurance company will cover what you need, think again. Care denied drops to the bottom line, in other words becomes profit.
This is the exact opposite of how insurance works, with care management being a large focus in insurers to try to control costs to avoid very expensive hospitalisations. Of course, since your background is providers, I can see that you can see insurers as a fountain of evil and providers as pure and righteous, but this is a vast oversimplification of the situation. My work with care management revolved around making sure people who were diabetic, etc. got regular visits from an (insurance company employee) nurse for follow up care to avoid hospitalisations or death - both of which are very expensive for insurers.
I could say more about "charge masters" but I don't want to confuse the issue.
J.M.
Why do hospitals and other providers keep them a secret? California forced them to be public record, and it seems to be working fine there. From my point of view, hospitals want to charge outrageous prices and then collude with large insurance companies on pricing, and rip off everybody else. Neither providers nor insurers are innocent in this.
They should post exactly the prices they charge for various services, patients should know what they are expected to pay, and it would be clear and transparent what insurance pays or would not pay. Medicare and Medicaid patients would continue to not have to pay anything if they are covered. This is how insurance works with things like auto body shops. I don't see why medicine is so different.