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Anger Transference

July 8, 2009
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

With all of the discussion about health insurance in the news, I took a step back last week to reflect on why there is so much public anger with insurance carriers over this issue.  Don’t get me wrong, the insurance carriers have some things going on that should be of everyone’s concern, starting with the mounds of process paperwork, lack of industry standardization and the pre-existing conditions issue.

With that said, is it enough to justify the public outrage that we see taking place today? I have become convinced that there are a large number of people that are not really interested in a viable solution; they just want it for everyone, for “free.” That is fact is where the problem lies. After much debate, I have come to believe that our anger, for the most part, starts at the “payment point,” meaning the money that we all (including me) shell out for the insurance. So, the anger is directed at the insurance companies. As I have said in several entries, the insurance cost is a reflection of the cost of the care. So, with that in mind, imagine that insurance no longer exists and everyone must now pay for their care directly. 

Let me point out the obvious, people would begin to pay closer attention to the actual cost of the care, not their co-pay or the amount deducted from each paycheck, but the actual cost of the care. Living here in America, we know what follows next, competition. Doctors and hospitals would be competing against one another on price and quality. The same could be said for physical therapy and chiropractic care and, well, you get the point. The pressure of public outrage would then be focused on the actual problem.  Those that are unable to compete on price and quality will no longer be in business. Yes, I said it. Healthcare is a business; it’s a service for a price. It always has been, it’s just that most of us have been shielded from that fact. The good news is that innovative and highly skilled people would be attracted to greater rewards rather than the diminishing interest we seem to be experiencing today with potential new doctors.  We are heading toward a system that will decrease interest in the medical profession. As I have pointed out before, Canada is an excellent example of this point.

Until we address the actual problems, insurance companies included, there will not be a solution. Politicians from both parties have demonstrated that they don’t understand the root of the issue and they are looking for populist solutions.  They are throwing numbers around that are often distorted or totally inaccurate without any awareness of how insurance actually works. If you think that things are expensive today, wait until they are “free.”  We all deserve better.

Thanks for spending your valuable time with me today!

Chris Garlasco

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