Romney’s Massachusetts health plan: worse than nothing

Basically, just a new way to shovel more profits to the insurance companies.


You should read the details. But here is the bottom line:

Blue Cross and other insurers that lobbied hard for the law stand to gain billions from the reform, which shrinks their contribution to the state’s free care pool and will force hundreds of thousands to purchase their defective products. Meanwhile, new rules for the free care pool will drastically cut funding for the hundreds of thousands who remain uninsured, and for the safety-net hospitals and clinics that care for them. (Disclosure–we’ve practiced for the past 25 years at a public hospital that is currently undergoing massive budget cuts.)

Health reform built on private insurance isn’t working and can’t work; it costs too much and delivers too little. At present, bureaucracy consumes 31 percent of each healthcare dollar. The Connector–the new state agency created to broker coverage under the reform law–is adding another 4.5 percent to the already sky-high overhead charged by private insurers. Administrative costs at Blue Cross are nearly five times higher than Medicare’s and 11 times those in Canada’s single payer system. Single payer reform could save $7.7 billion annually on paperwork and insurance profits in Massachusetts, enough to cover all of the uninsured and to upgrade coverage for the rest of us.

Of course, single payer reform is anathema to the health insurance industry. But breaking their stranglehold on our health system and our politicians is the only way for health reform to get beyond square one.


1 Comment

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One response to “Romney’s Massachusetts health plan: worse than nothing

  1. James J. Stewart

    I assume that this site allows submitters to say whatever statistics they feel will impress without citing any source for their statements. The Mass. plan is not going to work and it is a fiasco, but not because of administrative costs. There isn’t a Blue Cross plan in the US with 31% administration cost.

    The problem is that people like you want someone else to pay for what happens to you. You want that care now and you want it to be the best. Spokesmen/women for taking healthcare out of the private sector routinely can’t seem to understand that the uninsured are not people without healthcare.

    We are all human beings and we all face the same kinds of risk every day. Some are prudent enough to make preparations for that risk – others spend every dime they make and then some and expect the government or someone else to bail them out.

    We are, as a society, buying far too much health insurance. If we used the same standards with auto insurance, we would have a $5.00 copay for windshield wiper replacement, $10.00 for tires and $7.50 for an oil change. Insurance and the need for insurance is only for the unexpected, and normally, the catastrophic.

    What is the administration cost if you pay for your $70.00 prescription with cash out of your own pocket?

    The problem – we have too much insurance and we expect someone else to be responsible. Government run or government mandated health insurance won’t solve that.

    In the states that mandate auto insurance, in over 80% of those states the percentage of non-compliance with mandated auto coverage exceeds the percentage of medically uninsured people.

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