Wed
May 27 2009
11:46 am

UnitedHealth Group says rationing health care could save $500 billion.

But seriously, all this fear mongering about "rationing" under a universal health insurance program is bogus. We already have rationing. It's performed by call center cubicle workers who get paid for denying coverage and not paying claims.

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B Harmon's picture

call centers...

It has been over 15 years since I worked at an insurance company call center and even then, I was not on the front line of "Utilization Review". I started out in Case Management handling long term, catastrophic, and terminal care cases (think 1990's and HIV/AIDS and you will know how I really burned out doing this). Eventually I ended up writing policy and procedures for the world of "managed care".

It was all about rationing care and making everyone jump through hoops to get what they wanted. Most of the requests were legitimate, some were bogus. Many times I educated the family on how to be the real case manager, having to explain my job was to save the insurance company money "while offering you the best possible choices covered under your insurance and saving your lifetime benefits." I explained the "magic words" that would open doors, how to use the state insurance commission to your advantage, and how to creatively lie to get what you needed. (I am so glad this was before the calls were monitored!)

gonzone's picture

Exactly Correct Randy

We already have rationing.
Done by bean counters.

I've got an idea of how to save even more money with no rationing and health care for all!

Let's get rid of these overpaid executives, their lobbyists, their advertising, and all other unnecessary overhead and just use universal single payer health insurance instead!

Of course, these overpaid old white men executives can still opt to pay for boob jobs for their little trophy whores, no problems, if only they still had jobs killing people for profit.

IOW, let's ration their greedy little asses right out of a job.

"If ignorance is bliss, why aren't more people happy?"

circlemoon's picture

The 45 to 50 million uninsured citizens is rationing too...

Not just in access to health coverage but even emergency treatment becomes a crapshoot of indigent care facilities.

In some extreme cases, uninsured patients with expensive injuries or illnesses are just dumped on the street.

That's rationing... American Style.

EricLykins's picture

"Make the Republicans own

"Make the Republicans own the status quo, and remind people just how scary the status quo is – even for people who have health insurance." - Paul Begala, COUNTERING REPUBLICAN ORWELLIAN RHETORIC ON
HEALTH CARE. You have now received the memo. Thanks, politico.com for posting it.

bobbylife's picture

Okay.

I've got honest questions about this outrageously complex issue, of which I don't have very deep knowledge. Mock my ignorance if you want to, but please don't accuse me of being a troll. Not in this post anyway.

I'm Republicanesque, so I'll own it: the status quo sucks 'rhoids. It's not the "free market" that so many "conservatives" seem to believe it is. In fact, healthcare insurance is one of the most heavily-regulated industries there is. And it is scary, unless you're so rich that you're only scared of God. Healthcare insurance is purely a mockery of free markets, and I don't understand why so-called conservatives don't seem to notice that.

At the same time, the healthcare industry in the US encompasses a lot of stuff besides insurance. Advances in med tech and pharma come about because of investment and innovation, which deliver some pretty staggering benefits if you can afford them. We all know at least something about what these benefits are, I assume. I also assume that when we talk about access to healthcare as a basic human right, we mean that people should have access to all of the results of this investment and innovation. I don't see how healthcare access can be construed as a "right," but I know lots of people start there.

The questions all of this leads to seem obvious.

Who is going to pay for the exercise of this basic human right? The progressive answer ultimately devolves to some version of single-payer insurance operated by the Federal Government. There may be stages along the way to that, but it seems that that's the logical destination. For a lot of people, it sure seems to be the preferred one.

Why do single-payer advocates think this will necessarily improve healthcare delivery? I understand that it would open up access to healthcare for a very large number of people who currently don't have it, and whether you think of this as an issue of basic human rights or not, that's a very good thing. But what makes you think that the government people who run the single-payer system will not engage in the same kind of rationing, inefficiencies, and downright stupidity that private insurors inflict? If it becomes that kind of monster, how do you fix it? With the same ease with which you'd fix the Federal Income Tax Code?

I think that a single payer system has at least the potential to be an improvement over the status quo, but it also seems to offer huge potential for some pretty serious problems. I do not see as especially problematic forcing private insurers to compete with something outside themselves that would make them really act like they're subject to free market forces. But I also would like to see whatever happens fulfill a worthwhile objective affordably, and not just replace one difficult-to-navigate system with an incomprehensible morass.

rikki's picture

I've got honest questions

I've got honest questions about this outrageously complex issue

Thank you for a thoughtful post. This is the sort of conversation we should be having about this issue.

I agree with you that health care is not a right, and we certainly can not afford to give everybody access to every available procedure. I think it helps to break health and medicine down into three categories: physical injuries, infections and conditions.

It makes good sense for everyone to have unfettered access to treatment for infections since they are usually contagious. I would rather Taco Bell pay a sick employee to stay home than have them handing bag after bag through the drive-through window, but since they don't pay for my antibiotics, time or doctor visit, they may not see it that way. That is one of several places where market ideology breaks down in this complex issue.

I think we should also pay for physical injuries, including heart attacks and the like, through our government, not because it is a right, but because it best serves the common good to treat such misfortune as a shared risk.

The third category, conditions, is where things get tough. Some conditions are a misfortune of genetics, others simply signs of aging, poor diet or inactivity. The cold mathematics says that expensive procedures become cost prohibitive beyond a certain age. Disabilities can limit or preclude a person from having an income to tax. Does that mean we should not pay for their care? Emotionally, everyone wants to say no, but economically it may be best to keep such expenses private and discretionary.

Regular preventive care helps minimize the costs of conditions and infections, so it is probably best worked into a public health plan.

Regulations covering health care will clearly exceed the tax code in complexity, but under the current system, we have not just complicated rules, but dozens of sets of complicated rules. Most hospitals and doctors agree that a single payer with one set of rules would drastically reduce administrative overhead.

bizgrrl's picture

Hmmm.... Interesting

Hmmm....

Interesting breakdown of healthcare needs.

I can't tell. Are "Conditions" where money is going to be saved?

rikki's picture

Are "Conditions" where money

Are "Conditions" where money is going to be saved?

No way. They are the swamp.

Savings will come mostly from non-medical areas -- lower overhead from trying to sort through dozens of different insurers rules and protocols, lower overhead trying to collect from uninsured patients, etc. Savings in the care-giving arena would come mainly from preventive care.

I think a public health plan should be solid on injuries, infections and preventive care and stingy on "conditions," with supplemental private policies to broaden coverage in the more discretionary realm. In other words, if you can afford premiums on the current scale, you can guarantee yourself top-of-the-line treatment if you develop cancer, heart conditions, etc. If not, you may need to settle for stabilizing care.

To me, the goal of reform is not so much to make everyone as healthy as possible, but to preclude the slide toward homelessness and unemployment that can accompany major health events. Once we have a functional, humane system in place we can work on making it more comprehensive. Based on what I've read from physicians groups and others better informed than I, the reduced overhead from adopting a single-payer plan is potentially so huge that what I'm calling "stingy" could actually be rather generous.

EricLykins's picture

Bobby, excellent questions,

Bobby, excellent questions, and hopefully ignorance mocking and troll bashing are going out of style anyway. There's just too much work to be done these days.

The Office of Science and Technology Policy's Open Government Initiative held a public online brainstorming session this past week at http://opengov.ideascale.com/ There I ran across a link someone posted to an excellent blog post entitled "The Supposed Difficulties of Converting to Single-Payer" where Dr. Joel A. Harrison does a good job of dissecting the arguments against a single-payer system. I highly recommend reading all of it, but Dr. Harrison sums up the bottom line as:

Many other modern industrialized nations have managed to develop some form of universal non-profit health care system with most offering comprehensive cost-effective quality care, often with far less wait than here, patient choice of doctors and hospitals, and at a lower cost.

Gradualism, given all of the above, is just a code word for keeping the unearned, disruptive, counterproductive profits of a dysfunctional fragmented for-profit health care industry that never should have been allowed to come into being in the first place (a recent phenomenon even in the U.S. basically starting in the 1980s).

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