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    Hospital Impact News Scoop 3.10.2006

    March 10th, 2006

    hospitalimpactweekly2
    3.10.06

    The Uninsured
    60 Minutes did a feature piece on the uninsured last Sunday, highlighting how everyday working uninsured Americans have been exploited, violated, and manipulated by greedy hospitals. The report caused the AHA to hit the panic button - they sent an urgent letter to Dan Rather and attacked "community activist" K.B. Forbes. The blogosphere also responded - for example, InsureBlog's response, which attacked the uninsured person's excuse for not being able to afford insurance, generated quite a comments thread. Another uninsured couple who offered their horror story on the show was featured in their local newspaper blog. That blogger's thought process is even more odd: "I guess what this means is that big insurance companies have been successful in "keeping costs down". Except now it seems hospitals are trying to make up the difference by charging the uninsured more." Dick Clarke (CEO of HFMA) called it the "right topic, wrong focus" on the HFMA Views Blog. So, is this the start of another wave of hospital-bashing? Or just another report that will be forgotten in about 2 weeks? My bet is the former - 60 minutes is too big (~15 million viewers) - there's gotta be at least a few dozen lawsuits that will come from this.

    More on HSAs
    Earlier I posted on two congressmen's views on the pros and cons of HSAs. Well, whether you're pro or con, HSAs have hit $1B, with HSA Bank as the leading player (~29% market share). The AARP is against any proposal to expand HSAs, but they've decided to remain on the sidelines in this useless fight. Even CMS Head McClellan recently said that, "As HSAs have become much more popular in the under-65 market, it's time to make them available in Medicare as well."

    The Physician Shortage (or is it Excess?)
    Just a few weeks ago, I posted on 5 reasons why we are about to face an unprecedented physician shortage, Health Affairs had the nerve to contradict me. Based on their new study, it's not that we don't have enough M.D.s, it's that we aren't utilizing them effectively. The study notes that if we just learned from some best practitioners (e.g. Medical College of Georgia, Mayo Clinic) and paid particular attention to end-of-life care, we'd be set through at least 2020.

    Finally, if you haven't already, check out the 2nd edition of the Health Wonk Review over at The Healthcare Blog. Our little healthcare blogosphere is growing up!

    Comments:

    Comment from: hgstern [Visitor] · http://insureblog.blogspot.com/
     
    First, Thank You for the link!

    Second, I'm not sure how you got "attacked the uninsured person's excuse for not being able to afford insurance" out of Bob's post. Surely you'd agree that, given Mr Ferlini's relatively high income (upper 30%), absent some undisclosed health problem, he could very easily have afforded a safety net plan.

    Pointing out the truth doesn't seem (IMHO) the same as "attacking."

    Have a great weekend!
     
    Permalink 03/10/06 @ 14:16
    Comment from: Bob [Visitor]
    You can make excuses or you can find solutions but you can't do both.

    Here are some truisms.

    About 20% of the insured population generates 80% of the claims paid by a carrier. The first step is predicting which group you will be in . . . the 20% group or the 80% group.

    In the global insured population, about 4% of claims reach and exceed $100,000. Most claims that hit $100k will quickly advance to $250,000 and higher.

    So now the question is further refined, will you be in the 4% group or the 96% group?

    If you are in the 80% group that has little or no claim activity, you can self insure.

    Perhaps if you are in the 96% with claims less than $100,000 you may also be able to self insure.

    The problem is, few people can predict which group they will join over the next 12 months. Tour any hospital and ask every patient you see, particularly those in ICU, how many expected to be there a year ago.

    One can cover their risk excess of $25,000 for very little in monthly premiums. Even if you step it down to a more reasonable (for most) $5 - $10,000 level, the cost of insurance is managable for most.

    The only question is this. Would you rather pay a little now to protect yourself against the truly catastrophic claims? Or would you rather rely on the charity of others (and perhaps the bankruptcy courts) to take care of your needs?

    It comes down to one thing and one thing only.

    Personal responsibility.
    Permalink 03/10/06 @ 16:04
    Comment from: hospitaltony [Member]
    hgstern, thanks for the comment - I agree - attacking was probably too strong of a word.

    Bob,
    I'm with ya. It's unfortunate that we will in a society where we blame McDonald's for poor health, we blame TV for being couch potatoes. It's not pc, but it's necessary that we address this as a personal choice and as a matter of priorities & willpower.

    Permalink 03/10/06 @ 16:22

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