The US "Health Insurance" Industry is Trying to
Destroy America...
Opinion by Consumer Advocate Tim Bolen
Friday, December 9th, 2005
The
US Health Insurance Industry is vying with "Big
Pharma" for the title of America's "Public Enemy
Number One."
For a
while, I believed that "Big Pharma," alone, in
their murderous greed, was responsible for the problems
of "health care" on Planet Earth. And, frankly,
in most parts of the world - I'd say that's still true.
But,
not in the USA...
Here,
the Health Insurance Industry is giving "Big Pharma" a run for it's money - and a LOT of money that is.
I've
been watching the health insurance industry for years.
It's common knowledge that health insurance companies go
out of their way to deny payment for medical services.
That's a given. It has become obvious that the industry
is corrupt. So much so that there is a whole
counter-industry in place just to deal with them -
attorneys who specialize in suing them, billing
services, expert witnesses, etc. Even special
government agencies to monitor them. But, frankly,
nothing is working to remove the corruption. And, I'm
about to tell you why that is...
It's
all about the money. Huge amounts of money.
Distributed long before claims are paid out.
Ninety-one percent (91%) of the cost of "health
insurance" goes nowhere near paying for health
care. and American Industry, by law, is required to buy
into this system, if they have over 200 employees. No
wonder US industry is "outsourcing" labor to
Guatemala, Costa Rica, Thailand, etc. They are trying,
themselves, to survive.
Why
Health Insurance Companies Don't Pay Claims...
Since
I became a consultant to the Plaintiff in the "Cavitat
v. Aetna" Federal lawsuit I've had the opportunity to take an
even harder look at how health insurance companies
operate - and I'm appalled.
Frankly, by the time the money paid into health
insurance company funds is divided up there is little
left to pay claims - only, by my estimate, less than ten
percent (10%) of the total premiums paid to the
industry.
What? Less than ten percent (10%)?
Yup.
How
could that be? Easy. I've made you an example. It
works like this:
(1)
A health insurance policy is sold to a company, lets
call them "Acme Widgets." Since Acme Widgets has
over 200 employees in the US they are REQUIRED by
Federal law to provide insurance for their employees.
Lets say, for purposes of discussion, that Acme Widgets
has a thousand employees (1000). The policy will cost
Acme Widgets $14,700 per year, per employee - for a
total of $14,700,000 per year before they even pay wages
and salaries.
(2)
The insurance agent that sold them the policy gets forty
percent (40%) of the total sale as his commission - for
a total of $5,880,000 - leaving now, only $8,820,000 for
claims. Yup - 40%.
(3)
Then a ten percent (10%) profit to stockholders is
deducted - $1,470,000 - leaving now only $7,350,000 for
claims.
(4)
Then the employees that "administer" the plan at
the health insurance company take their cut - thirty
five (35%) percent - $5,145,000 - leaving now only
$2,205,000 to pay claims.
(5)
Then there are additional administrative costs deducted
- like campaign contributions, payments to contractors,
etc. - six percent (6%) - $882,000 - leaving now only
$1,323,000 to pay claims - nine percent (9%) of the
total premiums paid.
Nine
percent? Hardly what Americans think they are getting.
If you work this out on a per-employee basis, out of the
$14,700 per employee fee for insurance, only $1,323 is
available per employee for health care each year.
Talk
about "rip-off." One visit to an Emergency Room
on a Saturday with a cut on your kid's arm from falling
off their bicycle will catch you a bill for $5,000.
Never mind when your wife finds a lump in her breast...
or your heart starts to act funny.
Yup.
Ninety-one percent (91%) of the cost of "health
insurance" goes nowhere near paying for health
care. And American Industry, by law, is required to buy
into this system, paying whatever the health insurance
industry wants, if they have over 200 employees. No
wonder US industry is "outsourcing" labor to
Guatemala, Costa Rica, Thailand, etc. They are trying,
themselves, to survive.
Nope - the health insurance industry isn't worth
saving. The entire State of California is in the
process of solving this problem. You can read what's
happening by clicking here.
Aetna
Insurance company is livid that I've been
broadcasting about the "Cavitat
v. Aetna" Federal lawsuit. Their attorneys act like ADD/ADHD
kids strung out on red food coloring, preservatives, and
processed sugars, every time one of my pieces about "quackbusters" Baratz or Barrett, hits the internet. And they go off like
an El Queda car bomb every time I mention the word "Aetna."
As
you may remember - Aetna sent thugs to my neighborhood ("Is
Aetna threatening my family?"), allegedly "to
personally deliver a subpoena," one that had already
been delivered. Obviously trying to scare me off.
Why
would they do that? Because, I'm scratching too
close to the itch.
The "Cavitat" case is right on point, I think. The
information coming out of the investigations about the
relationship between the "quackbusters" and the medical insurance industry
will serve the North American Health Freedom Mo
Nope
- the health insurance industry isn't worth saving.
Stay
tuned...
Tim
Bolen - Consumer Advocate
Copyright 2005 by Bolen Report
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