As the Congressional budget battles warm up or role, depending on the perspective, time the cost of health care in the United States will pay a lot of attention. Unfortunately, most of the discussion is largely out of place, where unnecessary costs are actually avoidable. Yes, there is certainly more of the treatment, especially the people in their last days of life. Yes, medical service rebates have no financial incentive to do so, and the fear of misconduct can lead to overtesting and over-therapy. As a recent article published by Steven Brill, the pricing of health care is neither transparent nor reasonable. And it would certainly be nice if care is better coordinated through functional specialties.
But what few people are talking about and no serious suggestion policy is trying to eliminate the effect of the provision that makes up for the bulk of the difference between health care spending in the US and elsewhere it is the major administrative overhead that comes out of the housing to reimburse health care The hands of insurance companies have no incentive to the efficient fulfillment of its role as payment mediators.
More than 20 years ago, two Harvard professors published an article in the prestigious New England Journal of Medicine showing that health care costs ranged between 19 percent and 24 percent of total spending on health care and that this burden helped explain why both in the US American health care costs compared with Canada or the UK. An update of the analysis of more than a decade later, after the spread of managed care and the widespread adoption of computerization, it was found that the administration accounts for about 30 percent of the cost of health care states and states the proportion of health care workers administrative ( How to provide care care) workers rose by 50 percent was to form more than a quarter of the employees in the health sector.
What remains, even in the discussion of the great administrative expenses is not great, both in absolute dollars and as a percentage of health care costs, that is, but also how incentives are some of the insurance companies to stop them and lose all other time . Most major employers, including myself, Stanford University, are self-insured, that is, they pay for their own medical claims. These big companies always hire health insurance companies to "manage" their dollar health care to do things as claims. In general, employer insurers reimburse the amount of money paid to health care providers plus a percentage of these costs. In the case of Stanford, Blue Shield, we pay three percent of the amount, about $ 3 million a year. (Note that the total medical expenses less than a third are both slightly less than 1 percent.)
Since the insurers are paid a fixed percentage of the administration of claims, have no incentive to keep the costs low. Worse than that, they have no incentive to do their work, even with minimal competition. By putting a small personal example, I have reached the age of Medicare eligibility, but because I continue to work full-time, have a range of primary health insurance through my employer. Blue Shield, of course, want to be sure that does not wear for anyone who does not have that, so was asked to confirm the fact that I have no other insurance. No problem, with the exception of the certifications, appear to be necessary in almost a month basis that require my time on the phone (as expected) with the customer service Blue Shield, a contradiction in itself when it was ever, and also to my doctor and lab Requires calling me, calling Blue Shield, or both, and thus also waste their time and resources.
This story and many others of the same kind, but what is even worse, by the millions of people expanded companies undergo private health insurance, which is why the cost of American health is a lot and supplies so little. If and as long as we as a company pay attention to the enormous costs and power management agreements lost time, we will continue to pay too much for health care.
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