A classic and all too common example of the problem with private healthcare

[Mr. Whippy]

Anthem Blue Cross is being sued for canceling coverage

Incredibly hard to collect the evidence to prove this, LA is going after the bastids. Read the whole article and you'll see they were also charged with unfair competition (likely predatory pricing) and false advertising.

If you think this is isolated to this one insurer, you are mistaken. All of the big boys participate in similar practices.

[gospeed81]

yeah! facts, I like facts

[Mr. Whippy]

What facts do you want? Have you ever tried to find out about specific practices from health insurers?

BTW, the article mentions in passing Health Net's $8.4 million punitive damages when they canceled a woman's health insurance while she was being treated for breast cancer. The city attorney has brought a separate suit against Health Net, similar to the Anthem Blue Cross case.


Here's another link about Anthem Blue Cross asking docs to give them reasons to cancel insurance.

[Baldrick]

Insurance companies are in business to make money, NOT to make sure people are healthy or actually receive medical care. Once you accept that, nothing is surprising about what they do to deny coverage and avoid paying out. Ethics is a dirty word to those people, AFAIC. The need for lawsuits like that one shows that for-profit health insurance is a very BAD idea, in its current form. The only people who aren't hurt by it are the insurance company execs and share holders. I hope they get nailed to the wall.


/rant...

[gospeed81]

Originally Posted by Mr. Whippy

What facts do you want? Have you ever tried to find out about specific practices from health insurers?

BTW, the article mentions in passing Health Net's $8.4 million punitive damages when they canceled a woman's health insurance while she was being treated for breast cancer. The city attorney has brought a separate suit against Health Net, similar to the Anthem Blue Cross case.


Here's another link about Anthem Blue Cross asking docs to give them reasons to cancel insurance.

Sorry whip, I was trying to say that I appreciated the link.

After arguing to no end with libertoons about how bad insurance companies are, to the point that we are now looking to nationalize healthcare, it is nice to see that a municipality is coming down on a big company.

I liked the second link as well, almost more telling. While the first story demonstrates a common tactics, the second tells more about the mindset of these companies.

I understand they are there to make money, but they also sell their image, a product that says: "we are here to protect you." Their actions don't represent the pretty images shown in the commercials.

[Gaolee]

Insurance is one of the biggest reasons healthcare economics are so screwed up. They are unusual business models, too, since their profits are directly influenced by how long they can hold off payment. The perverse incentives are mind boggling.

[HighsideSV]

Originally Posted by Gaolee

Insurance is one of the biggest reasons healthcare economics are so screwed up. They are unusual business models, too, since their profits are directly influenced by how long they can hold off payment. The perverse incentives are mind boggling.

I read a theory a long time ago, that the private insurance system has also served to indirectly to reduce incentives to innovate inexpensive and more effecient treatments as well due to a lack of price competition in healthcare. Insurance companies decide what to pay, and so the providers charge that. If they were market directly to consumers there would be price pressure to provide services more effeciently. Any thoughts on that?

[Gaolee]

Lots of thoughts, all of them conflicted.

I think its time to start a whole thread about healthcare economics, since it deserves its own discussion.