Candace Talmadge Read Candace's bio and previous columns
June 12, 2009
Mandating Health Insurance
Purchase is Not Reform
Let’s be clear about
so-called health care reform shaping up in Congress with the spineless
acquiescence of the Obama Administration.
It is a gift to the health
insurance industry, pure and simple. Every American will be legally required
to purchase health insurance or face stiff tax penalties.
Exactly how does such a
punitive mandate improve actual health care in this country? It will do
nothing, of course, except fatten health insurance companies’ profits. The
rest of us are screwed because we don’t have hundreds of millions of dollars
for Capitol Hill campaign contributions.
“Requiring Americans to buy
insurance coverage from insurers who face no legal accountability will only
lock them into the same problems plaguing consumers today,” Consumer
Watchdog protested in a letter it recently sent to key members of Congress.
Amen to that. According to
the California-based non-profit organization, health insurers routinely
stick it those who pay for their products in a variety of ways. These
include:
·
No legal
accountability for mishandling patient claims. The Supreme Court pre-empted
state laws in favor of the federal ERISA statute. Patient claims against
HMOs or private carriers must be handled in federal courts, where they
cannot sue for damages or penalties, only for recovery of the costs of
services denied. This leaves the industry free to deny care without fear of
consequences.
·
Staggering,
cartel-like price increases in the 30 percent to 80 percent range per year
that are driven primarily by insurers’ own overhead and profit
considerations, not actual cost hikes in medical care.
·
Balance
billing, in which the insured face extra bills from doctors or other
providers for the portion of their services that insurance companies refuse
to cover because they routinely low-ball “customary and reasonable” fees.
·
Fine-print
contracts loaded with incomprehensible technical language so that consumers
do not understand the limitations of the coverage they have purchased and
pay for – until they need it and it’s not included.
·
Delaying care
via “pre-authorization” or “coding” tactics to keep claims in administrative
limbo. Often this results in care being no longer viable because a condition
has progressed too far.
·
Refusing to
clearly define terms like “medical necessity” and “experimental treatment”
and then making false assertions about treatments physicians recommend in
order not to pay for them.
·
Junk
insurance that does not cap out-of-pocket costs (deductibles and co-pays)
but does limit reimbursement amounts. As one example, Consumer Watchdog
cited a policy that limited chemotherapy reimbursement to $1,000 per day
when it usually costs $17,000 per day. The wife was left with $450,000 in
unpaid medical bills after her husband died.
·
Limiting risk
by refusing to insure people with pre-existing or chronic conditions such as
allergies or diabetes. Although Senate and House reform plans supposedly bar
this practice of refusing to insure pre-existing conditions, Consumer
Watchdog says how extensively proposed reform legislation will still permit
insurance companies to continue such underwriting tactics remains unclear.
·
Dumping the
sick by cancelling coverage after a customer contracts a major, costly
illness. Consumer Watchdog says nothing in the language of reform
legislation prevents insurers from transferring seriously ill customers to
skimpier insurance policies that do not cover their medical expenses.
Consumer Watchdog offers
remedies for these abuses, of course. They include:
·
Setting up
panels of independent medical experts to define whether any treatment,
device or medication is “medically necessary” or “experimental” and to
assess each disputed case, giving deference to the attending physician’s
recommendation.
·
Restoring the
rights of those denied treatment and harmed to sue in state courts for
damages.
·
Capping
out-of-pocket expenses so that patients do not risk bankruptcy over medical
bills.
·
Banning
balance billing so that no patient is held liable when an insurance company
refuses to pay legitimate amounts for medical care.
·
Requiring
state insurance regulators to do their jobs so that coverage is neither too
expensive nor benefits inadequate.
Let us not hold our breath,
though, waiting for the true health care reform light to dawn over Capitol
Hill. That would endanger not just our health, but our very lives.
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