| Health insurance company earnings were released, | | | | companies doing spending so much money on |
| showing billion dollar profits by the major insurance | | | | advertising and public relations? Who is looking into the |
| companies. Despite these earnings, all of the insurance | | | | huge burden they add to rising health care costs |
| companies continue to increase their premiums on an | | | | through all of their administrative errors, public relations |
| annual basis. I am writing as a small business owner, | | | | gambits, advertising, etc? |
| health care provider, and health care consumer to | | | | In the early 1990s, I joined several health insurance |
| describe my concerns about health insurance abuses. | | | | panels as a participating provider. Initially, the insurers |
| As a small business owner, the annual 15% to 45% | | | | offered reasonable fees, I signed up, hoping to be part |
| health insurance premium rate increases are | | | | of the solution to the country's health care woes. |
| unaffordable. Each year, as our employees age, we | | | | Within two years, our fees were slashed dramatically. I |
| reduce benefits to afford minimal health coverage. As | | | | maintained provider participation with a few panels |
| health consumers, our care is inferior and restricted by | | | | whose rates were acceptable. Although I dropped out |
| insurance company bureaucracy, and we have | | | | of the lower paying plans (whose compensation would |
| additional increased out of pocket costs. Just this past | | | | have left me with an income that is similar to the |
| week, it was reported on how health insurers have | | | | starting salary of a teacher), it was amazing how my |
| posted billion dollar profits, at the cost of reduced care | | | | name remained in their list of participating providers (a |
| for the insured. How is this fair? It is time to remove | | | | phenomenon known as the "phantom panel"). In all of |
| the anti-trust exemption that protect insurance | | | | these years, the fee has never been raised in the few |
| companies, and permits them to abuse the public. | | | | panels in which I remained. In contrast, my medical |
| As a health care provider, my income has | | | | health insurance rates have risen dramatically, as have |
| systematically been reduced, as insurance companies | | | | my rents, taxes, utilities, malpractice insurance, etc. |
| increasingly dictate the care I provide, the fees I | | | | There is something wrong in a society when the |
| receive etc. Additionally, we have been forced to | | | | healers, who require great educational training, are paid |
| spend more time and money on hiring administrative | | | | at far lower rates than those that deny health care, as |
| staff to deal with insurance company errors, | | | | is the case with the insurance company executives. |
| obfuscation, and refusal to pay for things that they | | | | Their compensation packages are in the millions of |
| must. Thus, health insurance companies increase health | | | | dollars each year, while the health care providers |
| care costs tremendously simply through their | | | | struggle to maintain a middle class standard of living. |
| administrative harassment of health care providers. As | | | | Health insurance companies contribute to the spiraling, |
| an example, I counted more than 200 claim errors | | | | out of control health care crisis. |
| from one insurance company in one year. This meant | | | | In my opinion, any successful health care reform must |
| that over 200 hours were spent rectifying insurance | | | | include: |
| company errors! Resolution of the problem only | | | | 1. Limits on the compensation of insurance executives |
| occurred after I sought assistance through | | | | (in the same way that incomes of all medical health |
| Congressman Pascrell's office (for which I am | | | | providers have been reduced). |
| immensely grateful). It is no surprise that private | | | | 2. Financial limits on insurance company expenditures |
| insurance administrative costs of 35 to 40% are way | | | | on lobbying, advertising and public relations efforts. |
| higher than those of Medicare, which are 3 to 5%. This | | | | Those funds need to be re-directed towards actual |
| high rate of administrative costs is unacceptable, and | | | | health care. |
| insurance accountability must be implemented. | | | | 3. Insurance companies exemption from anti-trust |
| In my quest to resolve the high rate of insurance | | | | regulations must be eliminated. |
| company errors, I learned that insurance companies | | | | 4. Insurance company accountability and reduction of |
| routinely employ personnel to deal with bad publicity. | | | | their claims processing errors and administrative costs |
| They employ entire departments to deal with | | | | must be reduced so that they fall in line with that of |
| legislators and the public. They spend unknown | | | | Medicare (3 to 5%). Stringent penalties need to be |
| amounts of money on advertising and lobbying. In this | | | | assessed upon insurance companies that fail to follow |
| time of economic distress, and with so many problems | | | | this ruling. |
| funding proper health care, what are insurance | | | | |