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‘Kiss Your Insurance Company Goodbye Forever’

From the New Republic (of all places):

Insurance Companies as We Know Them Are About to Die And here’s what’s going to replace them


Americans hate health insurance companies…. The good news is you won’t have insurance companies to kick around much longer. The system is changing. As a result, insurance companies as they are now will be going away…

[B]ecause of health care reform, new actors will force insurance companies to evolve or become extinct. The accountable care organizations (ACOs)… and hospital systems will begin competing directly in the exchanges and for exclusive contracts with employers. These new organizations are delivery systems with networks of physicians and hospitals that provide comprehensive care…

Today there are hundreds of these organizations being created and gaining experience within government-sponsored programs or getting contracts from private insurers. They are developing and testing ways to coordinate, standardize, and provide care more efficiently and at consistently higher quality standards. Over the next decade many of these ACOs and hospital systems will succeed at integrating all the components of care and provide efficient, coordinated care. They will have the physician and hospital networks. They will have standardized, guideline-driven care plans for most major conditions and procedures to increase efficiency…

In other words, these ACOs are the death panels.

The key skill these ACOs and hospital systems lack—the skill insurance companies specialize in—is the actuarial capacity to predict and manage financial risk. But over the next decade this is something they will develop—or purchase… Then they will cut out the insurance company middle man—and keep the insurance company profits for themselves…

In January 2012 Jeffrey Liebman and I predicted in The New York Times the end of health insurance companies by 2020. We might have been a bit optimistic—or provocative. But it is certain they will end. Insurance companies will largely cease to be the middle man—taking premiums, paying providers, saying no to consumers, and making a profit—that we blame…

Instead we will be able to turn to these merciful ACO bureaucrats.

So be prepared to kiss your insurance company good-bye forever.

Along with any control over your medical treatment.

This article was posted by Steve on Tuesday, March 4th, 2014. Comments are currently closed.

3 Responses to “‘Kiss Your Insurance Company Goodbye Forever’”

  1. Rusty Shackleford says:

    “The key skill these ACOs and hospital systems lack—the skill insurance companies specialize in—is the actuarial capacity to predict and manage financial risk.”

    Yup, and, even more than now with my insurance company (BC/BS), I will become just a more obscure number. A statistic. When I’m a tax-paying provider of money for the apparatus, they will repair me, but only enough so I can do my work and keep paying taxes. After I retire, not so much. Need a hearing aid? “What is it that you do that makes you need to hear?”, they’ll ask. And, because I cannot hear them and don’t answer, will mark, “no response” in the form. Because they will have, as their main source of employment, uneducated minorities and spanish-speakers to “help” me get the “care” I need.

    Yes, let’s bureaucratize the whole flippin’ universe and make sure everyone has a Form B1911/Y so they can be counted.

    *sigh*…I put up with that crap in the military. I really wanted it to go away when I got out and to see it encroaching on everything I do just makes me wish for a deserted island with food and drink a-plenty. But there’s noplace left to go. The socialists, even when they lose, they win and they NEVER SHUT UP.

  2. GetBackJack says:

    If memory serves France’s Age of Bureaucrats ended badly. And I mean really really badly …

  3. Mithrandir says:

    1. We always knew democrats had their eye on universal health care. Ted Kennedy campaign on it in 1978: http://www.youtube.com/watch?v=LhYtMmw9OVk,

    …and even before that in 1854: http://en.wikipedia.org/wiki/History_of_health_care_reform_in_the_United_States

    For Republicans not to take note, EVER, and try to reform it before the democrats ruined it, makes both parties to blame, and by my count, 1854 to 2014 = 160 years.

    Republicans only need to keep their ear to the ground, to listen for rumblings of what democrats will try to do in the next 5, 10, or 160 years later, and pounce on it. All those trial balloons are not failures in the eyes of democrats, they are eliminating failure, and “progressing” towards success. -and they will get it, 100% of the time, because Republicans are deaf, asleep, afraid, or too stupid to stop it.

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