On Mon, Feb 16, 2009 at 12:31 PM, Scott Stroz <[email protected]> wrote:
>
> You make a good point, but wouldn't that be the case no mater who was
> running the show? I mean if we had gov't funded insurance, wouldn't they
> ultimately have to do the same thing and not just hemorrhage cash?

Yes and no. I think that there will be a role in any system for
limitations on care. I also think that claims need to be investigated
and that no system should just go paying willy-nilly for everything
submitted to it.

None the less, there is a profit motivation in private insurance. That
is a good thing in all sorts of cases. I'm making software to reduce
the administrative overhead in healthcare. The better job I do
improving efficiency for them, the more profitable they are, the more
money I make. That is a good example of the profit motive doing great
things in private industry, even within the medical industry.

With insurance, however, the profit motive means higher costs for
insurance, rejection of more people that might upset your risk pool
and a motivation to deny payments even where warranted. If we take
away the shareholders pushing for an ever increasing revenue growth
and profit margin every quarter we've already decreased the costs for
the system.

There is also a movement afoot to tie insurance reimbursement rates to
quality of healthcare standards. Doctors with lower overhead, better
communication, better patient satisfaction, more efficient systems,
will receive higher reimbursement rates and thus try and promote
competition between care givers.

Ideally, money will flow from a large insurer pool (the American
public) which normalizes and stabilizes the risk pool through a payer
system with low overhead and efficiency of scale to doctors that are
competing based on quality of care and efficiency.

Judah

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