[quote]Zap Branigan wrote:
Lorisco wrote:
Professor X wrote:
Lorisco wrote:
You still don’t get it Bro. It is called competition.
If you have a service you are trying to sell and someone comes and sells that same service for less, people start to use the cheaper service instead of yours. Then at some point you are out of business. This is called the market rate.
In healthcare there is no limit on price and hospitals and other service providers set their price based on RVU’s (Relative Value Units). And the thing is that there is no standard for RVU’s. Each service can and does make up what they feel they should change with little rationale behind it. The only guideline is that you cannot control the market by working with competitors to control the price.
This is false. In my practice, my prices for services are set by insurance companies. I am not sure where you are getting your info.
No, it’s true. The price set by the insurance company only applies if you want to be part of their provider network. If you don’t you can set whatever price you want. But if you want the extra volume that an insurance company can provide, then you have to play ball and except their rate.
Now if the consumer of these services had to pay for them directly they would go to the cheapest place and soon prices would drop due to competition. Basic!
Again, this is bullshit. In practices that avoid insurance companies and accept “fee for service”, the doctors usually charge higher fees. Anyone who truly understands how much control these insurance companies have would probably go ahead and accept the higher fees because insurance companies are attempting to not only control price but the quality of the services.
Your comment is accurate but irrelevant in terms of consumer economics. When you join and insurance network you are voluntarily agreeing to their rates. But if there were no insurance companies your rates would voluntary be lower due to what people could afford because if they weren’t, and a competitor had lower rates, you would loose business. That is why you joined an insurance company, because they offer consumers lowers rates than you charge normally. If this was not the case than people would just come to you without insurance and pay your normal rate.
But because the insurance plan is cheaper for people they use network dentists and not you. So you have to become part of the network to stay in business. (I’m not saying this is fair or the best way to do it, I’m just saying that this is the way it is)
I may diagnose a patient as needing a service that may cost more. Even though the cost is higher, I may truly believe it is the better option…however, the insurance company won’t pay for that service because they have already deemed all issues even similar as needing a certain type of restoration. They won’t pay for any other options.
I agree. Quality is sacrificed sometimes for cost. No question. It is a problem with the current system.
Why do you think so many GP’s are leaving the medical field? This isn’t Mc Donald’s. You are paying for quality in health care, not just a simple service. With insurance companies in control, you can be sure that quality will based on that of the lowest bidder.
I agree to some extent. However, quality is not that expensive. Vet’s go to school as long or longer than most medical doctors and dentists and yet their services cost much less than medical services. It is because there is not much pet health insurance driving up the prices.
But if you were paid by the government in a single payor system, you think you would get paid more that in the current system? Not on your life.
You guys are both right and are seeing the same things in slightly different ways.
The main problem with our current system is the insurance companies keep too big a share of the money.
I think the best solution would be to have individuals pay their own way for almost all services and then carry a low premium/super high deductible insurance for real catastrophes.
More money would go to the doctors, patients would save money and most of the insurance executives would have to get new jobs.
I live in a nice town with a nice hospital and a couple health insurance companies have big headquarters in the area. The insurance execs have nicer houses than the doctors. Something is wrong with that.[/quote]
I agree with you. However, for your plan to work people will have to take some responsibility for their own health. And in case you haven’t looked out the window lately, we live in an entitlement society. Everyone wants someone else to take responsibility for them, their health, and their lives in general. Individual responsibility is not a popular concept in the US.
So everyone wants the very best healthcare money can buy as long as it isn’t their money that is buying it.
This is why universal healthcare will not work in the US, because quality and access will drop when the financial incentive for doctors and healthcare service companies is removed.