Friday, April 22, 2005

An example of wasted healthcare expenses

This news is from the San Francisco Chronicle April 22, 2005. Consider this story in the context of my article on American’s Failed Healthcare System.

This story describes a private insurance company which is attempting to sell policies and reduce costs by shifting the healthcare costs of non-dependents to some other healthcare payer. The “professional benefits counselors” are paid from healthcare funds, but add nothing to America’s healthcare. Such behavior is required by the system itself if private insurers are to operate.

"The Oakland Unified School District has given out thousands of employees' Social Security numbers to insurance salespeople and has infuriated Oakland teachers, who say they are being forced to sit through a life insurance sales pitch on penalty of losing health benefits for their dependent family members. […]

"The purpose of the meetings is for the Oakland schools to determine whether dependents claimed by roughly 3,000 employees are entitled to the health insurance they receive. All 3,000 are required to meet with a "professional benefits counselor" by May 6 and show original documentation -- such as birth certificates and marriage licenses -- to prove the eligibility of their children, spouses or domestic partners."


The waste of money is a problem over and above the violation of privacy involved when the school district hands out Social Security Numbers and phone numbers to private sales people.

The private commercial health insurance system is the problem. The wasted money is necessary because we pay insurance companies to administer the Health care system, and they make a profit by adding members, collecting premiums, then delaying or not paying expenses. Private health insurers cannot compete with government health insurance on a cost basis! They don't even try!

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