An Arm And a Leg

Well, President Obama has not given up on his largely unwanted plans for the Reconstruction of America’s health insurance system.

Obama found some folks to help drain the healthcare reform swamp. They'll only charge the American people an arm and a leg...each
These Gentlemen have Volunteered To Drain The Healthcare Swamp

With the Democrats in Congress beginning to flee his agenda, he’s found others who are willing to “drain the swamp” of ObamaCare – and they’ll only charge the average American an arm and a leg each. 😉

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NOTE: To be fair and accurate, neither the insurance companies or the hospitals are currently predatory in nature, operating as they do with a 3% – 4% profit margin, but the current iteration of ObamaCare is likely to change that.

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2 Responses to “An Arm And a Leg”

  1. pino Says:

    To be fair and accurate, neither the insurance companies or the hospitals are currently predatory in nature, operating as they do with a 3% 4% profit margin

    But but but…they have a 30-40% administration margin!

  2. jonolan Says:

    That’s close to true, pino, or at least not an unfounded assertion.

    Physician For a National Health Program, a pro Single Payer group, claim private insurance’s administrative costs are 31%.

    On the other hand, CCH’s report – aimed at companies shopping for benefits and at potential investors – has the figure at a baseline of 10.4% but with a lot of variance based upon type of plan.

    In any event, health insurance has a lot of administrative overhead and few other sorts of costs, so would normally show a high administrative overhead.

    Some examples of that overhead:

    • Marketingincluding research, plan designs, advertising, broker payments, rating, and underwriting.
    • Provider and medical managementprovider network and contracts; quality administration and reporting; and medical and pharmacy management.
    • Account and member administrationenrollment and billing; claims; information technology; customer service; communications, and fraud control.
    • Corporate servicesfinance and accounting; actuarial services; risk management; legal compliance and filing; corporate executives and governance; and investment services.

    I don’t see where there should be much of a problem with the above. Insurance is, after all a people-centric service industry and one that requires a great deal management in order to function anywhere close to well.

    BTW – welcome! I’m glad you stopped by.

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