Another way to reduce “medical losses” - pay out less insurance for life saving drugs
The drug companies and health insurance companies provide a criticial service to the people. They can act either in benevolent ways, ensuring that the most people get the best health care possible, or they can act like mafia extortion men, holding health and happiness hostage for ever-increasing amounts of money. I think it’s clear which way they have leaned, especially in the recent past.
Case in point, this article from the New York Times. It describes a practice that insurance providers have put into place, in which for specific drugs which are expensive, the insurance pays a percentage of the cost rather than everything above a limited co-pay.
From the article (emphasis mine):
No one knows how many patients are affected, but hundreds of drugs are priced this new way. They are used to treat diseases that may be fairly common, including multiple sclerosis, rheumatoid arthritis, hemophilia, hepatitis C and some cancers. There are no cheaper equivalents for these drugs, so patients are forced to pay the price or do without.
These are not “optional” drugs, nor is this a case of people choosing name-brand over generic because of some sense that they are better. These patients need these specific drugs to be healthy. This policy has a terrible impact on people already struggling with serious diseases:
There must be a mistake, Ms. Steinwand said. So the pharmacist checked with her supervisor. The new price was correct. Kaiser’s policy had changed. Now Kaiser was charging 25 percent of the cost of the drug up to a maximum of $325 per prescription. Her annual cost would be $3,900 and unless her insurance changed or the drug dropped in price, it would go on for the rest of her life.
Of course the insurance companies sell this using a populist message: make the sick minority pay for their drugs, and your premiums will be lower. Never mind that this goes against the very purpose of insurance.
I’m not quite sure who to blame here. The drug companies are almost definitely overcharging for these drugs, based on a business model that relies on double-digit profit margins and advertising budgets that outstrip research budgets. Insurance companies are literally parasitic, profiting by making America sicker. The only real option is a comprehensive overhaul of health care, which I hope the next Administration can push through.
