Daily News Updates - Health Insurance News

2nd Opinion on Health Insurance reform, Pt.2 -- Industry Speaks Out

Here, now, is the “industry view” as reflected by a group of health insurance providers (including big players, like Aetna Health Insurance), health care providers, and the major drug wholesaler McKesson Corp. This group is “highly critical” of several of the “Commonwealth”s proposed ideas. Speaking for Aetna, the chief executive, Ron Williams has this to say: "At the end of the day, I think we should get everybody in the system." He goes on to say that he would “stop short” of supporting the mandate of employers. This group proposed it’s own plan in a Chicago briefing. Items included were to change payment systems to reward quality instead of quantity. They also proposed creating a greater public awareness about quality care and pricing. The current system we have now generally rewards doctors and hospitals on quantity, things like how many tests and procedures are administered and how long is a hospital stay. The greater the quantity, the more they are paid – efficiency out the window. Quality – not even a factor. I believe the theory is that this would drive down prices (prices and costs are not the same in a free market economy). The goal being "At the end of the day, I think we should get everybody in the system." Aka. Provide some form of health insurance for everyone.

Although the Commonwealth plan proposed placing performance and technology improvement measures on the health care providers, Denis Cortese is not optimistic. Denis Cortese is the chief executive of the prestigious Mayo Clinic hospital system. Denis believes the Commonwealth model of utilizing Medicare to cover health insurance is “a terrible idea. He states that "Medicare is paying for the inverse of value." They haven’t gotten the delivery system right in 30 years. No suggestion of an alternative to provide health insurance for those 47 million was given.

Continued…