Managed care profits up, optimism for 2005 strong

[Roland99]

http://www.ama-assn.org/amednews/2005/02/28/bisc0228.htm

"Despite the wonderful profits they've made, they are still very hard-line when we're trying to negotiate a contract with them," said the Raleigh, N.C., otolaryngologist, who in contract negotiations three months ago was offered reimbursement increases of no more than 5%. "There is no transference of any of their to doctors' rates."

This is an old story to Dr. Holmes, but the profit levels of most large insurers are surging with an exuberance that's catching the attention of Wall Street anew. Six of the seven largest health plans saw their profits increase in 2004 -- California-based Health Net was the only one to see a decline. Aetna and CIGNA saw their profits more than double. Aetna's were up 136% and CIGNA's were up 128%.

<...>

HMO premiums increased by about 10% to 12% last year on average, about two to three times the rate of inflation, Mercurio said. At the same time, medical cost increases fell from 7.8% to 6.4% last year, said Isabelle Roman-Barrio, a senior financial analyst at New Jersey-based A.M. Best Co.

"There's a lot of talk of medical care and technology and pharmaceuticals rising in cost, so that managed care companies feel justified in raising their rates," Dr. Holmes said. "But rates are far exceeding the the costs are going up."

Yay! Insurance companies are reaping tremendous profits while rates go up, deductibles go up, co-pays go up, and maximum payouts come down.

Between the drug industry, oil companies, and insurers, they're all one big happy Bush-loving circle jerk!


BTW, tort reform anyone?

[havocmom]

1. Wouldn't ya love to see ads on TV with that couple the insurance industry

used to fight Health Care Reform? I would love to see the couple that made America SOOOO afraid of 'government health care rationing' on TV again, raging about how their HMO is withholding care they need. Why, they might be said to be RATIONING HEALTH CARE, just like they warned us the government would do if we went to a national health care program!

Guess it's all about who gets to do the rationing, and who gets to cash the premium check$, huh?

[Roland99]

2. Government share of health costs grows

Impact of Medicare prescription benefit studied
http://www.cnn.com/2005/HEALTH/02/24/health.costs.ap/index.html

WASHINGTON (AP) -- Within a decade, the government will be footing the bill for nearly half the nation's medical costs, its share propelled higher by the new Medicare drug program, administration economists estimate.

At the same time, total health spending -- both private and government -- will take an ever-larger portion of America's economic output, said the report from the Centers for Medicare and Medicaid Services.

<...>

This year, 76 percent of all drug spending -- a projected $223.5 billion -- is expected to come from private health insurance and out-of-pocket co-payments.

That privately paid portion will fall to 59 percent next year, when the new Medicare benefit starts and there is a shift to Medicare from private payers and from Medicaid, officials said.

And the fiscal conservatives move us closer and closer to higher taxes and socialized medicine.

Amazing.

[wryter2000]

3. This is obscene!

Not just denying patients medical care they need, but squeezing doctors, too! No one should make a profit off health care.

[ender]

6. i disagree.

doctors should "make a profit", absolutely, positively.

nurses should "make a profit"

pharmacies, pharmaceutical companies, etc should make a profit.

should there be an insurance middleman that is for-profit? no.

[wryter2000]

9. Profit

Making a decent living so that you can put something away, buy a home, etc. etc. isn't what I meant by profit. If you provide a service, you deserve to be compensated. What I meant is that no corporate entity should make a profit.

I work for a non-profit health care organization, and we routinely make more than we spend on regular expenses. But we use that "margin" to build new facilities. I don't want that margin going to shareholders or excessive salaries for administrators.

[AP]

7. Screwing labour, whether it's a doctor, nurse, or the employees who have

to accept these crappy health insurance plans.

[Dr Ron]

4. They're the problem

Bush bashed Kerry's health care proposals claiming it was a government take over of health care and gave lip service to having doctors and patients making the decisions,not government bureaucrats.

Even ignoring the Bush lie (as Kerry's plan was not a government take over), he also diverted attention from who it really is that is taking way decisions from doctors and patients. Medicare has very limited regulations over what can be done. It's the HMO's, not government plans, which are trying to micromanage and make the decisions.

Of course it is Bush whose plans tend to push people towards HMO's (or to lose meaningful coverage). It's also Bush's government which interferes with measures such as restrictions on stem cell research, abortion, and birth control.

[Roland99]

5. And it only takes insurers/drug companies a bit of effort to...

persuade a few politicians to make life easier (read: more profitable) for them.

[bemildred]

8. How about "Mangled Care", can we call it mangled care? nt

[lovuian]

10. HMO's make money and Hospitals go Bankrupt!!!

The Hospitals are in such bad shape!!!

So many uninsured and the ones who have money are getting the shaft!!!

A sick person doesn't need this crap!!!