N.C. Commissioner Issues Warning About Discount Health Insurance Plans
Southeast News • August 30, 2005
Seven North Carolina Better Business Bureaus and 148 Chambers of Commerce are receiving letters of caution from Insurance Commissioner Jim Long urging them to warn their members and citizens about ...
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Subject: RE: warning on discount insurance plans
Posted On: November 9, 2005, 9:42 pm CST
Posted By: Carl Rupe
Comment:
I run a small independent family medicine practice in Mecklenburg County and see the crisis from 4 different perspectives.
(1) As a small business owner, my employee's insurance premium went up 26% this year, on top of 18% last year, on top of 22% before. Health insurance as sold by the BIG 6 - United Healthcare, BC/BS of NC, Wellpath, Cigna, MedCost & Aetna has become unaffordable - and therefore unavailable, to individuals with pre-exisiting conditions, small businesses & their employees, and the self employed.
(2) Mega mergers & acquisitions of smaller companies go unchallenged, allowing companies to control 30% - 45% of a local market, allowing insurance companies to charge whatever premium they want- and they do. No company should be allowed to have more than 10% market share w/o rate controls, much as the utilities and cable TV.
(3) Politicians have to quit adding mandatory coverage requirements, allow for product & price differentiation so that consumers have a real choice and real pricing alternatives.
(4) Over 90% of all health care services in Mecklenburg County (and some others) are provided by two non profit, multi-county hospital systems - Novant Health and Carolinas Healthcare. They also can price at will - and do... driving up everyone's health insurance premiums. They've got tens of millions of dollars for birthing centers and new buildings and don't contribute a dime to our tax base. I pay more in taxes than both hospital systems combined. Do they provide free healthcare to the community? Of course, but is it accessible, is it timely, and is it cost effective??? I msut give credit to their innovation and business management. They are the only force that prevents the health insurance industry from absolute & total control. It is a sad state of affairs.
(4) The insurance model we employ is a rigged game. Independent physicians are being driven out of business due to take it or leave it pricing for their services - by both the health insurance industry and politicians who want to offer more health benefits to the aged, infirm, indigent AND are unwilling to pay for it. More importantly, "NETWORKS" should be banned, as they are used as a weapon against the consumer and the physician. Our health care system would be better served if it were modeled on true consumer choice and market pricing.
To sum it up - we are dealing with OPEC, a convenient ogliarchy of large corporate interests and pandering politicians. More NC residents are being left out and affordable coverage is difficult to find. Even the Health Savings Accounts are being rigged - passing more of the obligation to the consumer and raising the administrative costs as well.
There's got to be a better way. Medical service has degraded, more physicians are leaving their profession, and fewer physicians are entering primary care - where the bulk of all medical services are provided. I don't blame them one bit. It's too 'darn' hard.
Subject: RE: warning on discount insurance plans
(1) As a small business owner, my employee's insurance premium went up 26% this year, on top of 18% last year, on top of 22% before. Health insurance as sold by the BIG 6 - United Healthcare, BC/BS of NC, Wellpath, Cigna, MedCost & Aetna has become unaffordable - and therefore unavailable, to individuals with pre-exisiting conditions, small businesses & their employees, and the self employed.
(2) Mega mergers & acquisitions of smaller companies go unchallenged, allowing companies to control 30% - 45% of a local market, allowing insurance companies to charge whatever premium they want- and they do. No company should be allowed to have more than 10% market share w/o rate controls, much as the utilities and cable TV.
(3) Politicians have to quit adding mandatory coverage requirements, allow for product & price differentiation so that consumers have a real choice and real pricing alternatives.
(4) Over 90% of all health care services in Mecklenburg County (and some others) are provided by two non profit, multi-county hospital systems - Novant Health and Carolinas Healthcare. They also can price at will - and do... driving up everyone's health insurance premiums. They've got tens of millions of dollars for birthing centers and new buildings and don't contribute a dime to our tax base. I pay more in taxes than both hospital systems combined. Do they provide free healthcare to the community? Of course, but is it accessible, is it timely, and is it cost effective??? I msut give credit to their innovation and business management. They are the only force that prevents the health insurance industry from absolute & total control. It is a sad state of affairs.
(4) The insurance model we employ is a rigged game. Independent physicians are being driven out of business due to take it or leave it pricing for their services - by both the health insurance industry and politicians who want to offer more health benefits to the aged, infirm, indigent AND are unwilling to pay for it. More importantly, "NETWORKS" should be banned, as they are used as a weapon against the consumer and the physician. Our health care system would be better served if it were modeled on true consumer choice and market pricing.
To sum it up - we are dealing with OPEC, a convenient ogliarchy of large corporate interests and pandering politicians. More NC residents are being left out and affordable coverage is difficult to find. Even the Health Savings Accounts are being rigged - passing more of the obligation to the consumer and raising the administrative costs as well.
There's got to be a better way. Medical service has degraded, more physicians are leaving their profession, and fewer physicians are entering primary care - where the bulk of all medical services are provided. I don't blame them one bit. It's too 'darn' hard.