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It\’s the American way: invest your money to secure your future. Put money into your IRA, 401-K, 529; invest online and maybe you can strike it big.
Publicly held companies are increasingly under pressure to produce in the short-term to keep their investors happy. The bottom line is to achieve as high of profits as possible. Long-term plans are often given up to maximize
So what happens when these companies are inserted into a dysfunctional healthcare system? Insurers, pharmaceuticals, and device manufacturers are among the publicly-held companies through which a huge amount of cash is flowing. Is it any wonder why reform is slow to happen?
Think about it. What are things in the system that bother you the most?
- Direct to consumer marketing by pharmaceuticals.
- The influence of drug reps on physician behavior – prescribing more expensive medications due to their influence.
- Physicians taking large stipends from device manufacturers.
- The influence of Pharma on the FDA.
- The \”authorization\” process keeping patients from procedures and keeping money from physicians.
- The incredibly high salaries of CEO\’s of insurance companies and pharmaceutical manufacturers.
What is the reason for these things? I don\’t think there is an evil conspiracy behind it. I see companies doing what they need to do to make a profit. This isn\’t wrong. These companies are morally obligated to maximize the financial returns for their investors. and they give best return when they take the most money out of the system. This is not evil, it is what they are supposed to do.
So should we really believe that a system can be reformed where some of the biggest players in the industry are doing everything they can to take as much money as possible? We can\’t expect them to act any other way – not because they are greedy and evil, but because of the high pressure to produce on the short-term. All of those with these companies in their portfolio expect it.
I am aware of the fact that some of the insurance companies are non-profits: specifically Blue Cross/Blue Shield. Why this has not caused them to have a bigger view of things is difficult to say. In my experience, they behave exactly the same as the for-profit companies; they delay payment, deny procedures, and require paperwork just like the publicly traded companies.
To me, this is one of the best arguments for more government involvement in this area. To say \”it should be a free market\” sounds nice to some, but there isn\’t anything to suggest that less regulation would cause cost to come down – it would simply make profits go up. The goal of healthcare should not be to provide a good investment opportunity for people. One of the biggest challenges ahead of anyone who is going to try to reform healthcare will be to plug the holes where money is spilling out of the system.
Even if it hurts my portfolio.
While I am certainly no expert in this area – my biggest frustration is the fact that our government cannot deal with the responsibilities they have now….let alone add a new one – especially health care.
I was raised with the idea that when you prove yourself responsible in one area – you will be given more responsbility. I don’t think the government has proven them responsible in any area lately – and that is really sad! If the government will step up and enforce the laws already in place (i.e., illegal immigration) – then, maybe more consideration will be given to allow them a say in our healthcare.
While I am certainly no expert in this area – my biggest frustration is the fact that our government cannot deal with the responsibilities they have now….let alone add a new one – especially health care.
I was raised with the idea that when you prove yourself responsible in one area – you will be given more responsbility. I don’t think the government has proven them responsible in any area lately – and that is really sad! If the government will step up and enforce the laws already in place (i.e., illegal immigration) – then, maybe more consideration will be given to allow them a say in our healthcare.
Kelly, I think if you look at the research regarding illegal immigration, you’ll find that the effects of it on our economy and prison population are negligible, and are actually beneficial in some instances. I don’t have any of these reports handy, but it’s really not my area.
Rob, I’m not sure but I’d be willing to wager that the people in charge of BlueCross/BlueShield (and lots of other entities) make quite a bit of money, similar to CEOs making large amounts of money compared to those in the trenches at pharma companies.
Let’s not forget that non-profit and not-for-profit do not mean nobody is making money!
Kelly, I think if you look at the research regarding illegal immigration, you’ll find that the effects of it on our economy and prison population are negligible, and are actually beneficial in some instances. I don’t have any of these reports handy, but it’s really not my area.
Rob, I’m not sure but I’d be willing to wager that the people in charge of BlueCross/BlueShield (and lots of other entities) make quite a bit of money, similar to CEOs making large amounts of money compared to those in the trenches at pharma companies.
Let’s not forget that non-profit and not-for-profit do not mean nobody is making money!
I am not suggesting the government take over healthcare insurance, just regulate it better. Just as Teddy Roosevelt regulated the monopolies of his day, it is the government’s duty to prevent practices by corporations that hurt the population. That is why I said that we should have “more government involvement.” They need to do their job – which I don’t think involves running healthcare, just regulating it better.
I am not suggesting the government take over healthcare insurance, just regulate it better. Just as Teddy Roosevelt regulated the monopolies of his day, it is the government’s duty to prevent practices by corporations that hurt the population. That is why I said that we should have “more government involvement.” They need to do their job – which I don’t think involves running healthcare, just regulating it better.
Great post. An interesting read and well written.
Keep em coming!
Great post. An interesting read and well written.
Keep em coming!
EEG – you must not live here in Texas! They may be beneficial in some areas but, did you know that “Of immigrants and their young children (under 18), 47.4 percent either have no insurance or have it provided to them through the Medicaid system compared to 25 percent for natives and their children.” (from the Center for Immigration Studies). It’s frustrating to watch a friend of mine, who is a single mother, not be able to get Medicaid for her and her child because she makes too much money….which is basically NOTHING! They live in a 600 square foot, 1 bedroom apartment in a “not so safe” part of town. There are several of us who help them with groceries and emergencies. But, those that are here illegally – get their “government insurance” given to them.
Rob, I really wish the government had the integrity to regulate some of the health care issues – and maybe I am just really frustrated at the moment and disheartened with our government!
I really, really enjoy your blog!
EEG – you must not live here in Texas! They may be beneficial in some areas but, did you know that “Of immigrants and their young children (under 18), 47.4 percent either have no insurance or have it provided to them through the Medicaid system compared to 25 percent for natives and their children.” (from the Center for Immigration Studies). It’s frustrating to watch a friend of mine, who is a single mother, not be able to get Medicaid for her and her child because she makes too much money….which is basically NOTHING! They live in a 600 square foot, 1 bedroom apartment in a “not so safe” part of town. There are several of us who help them with groceries and emergencies. But, those that are here illegally – get their “government insurance” given to them.
Rob, I really wish the government had the integrity to regulate some of the health care issues – and maybe I am just really frustrated at the moment and disheartened with our government!
I really, really enjoy your blog!
Maximize profits, just take all the money they can, out for shareholders, is that how we think about human life. The problem is these executives don’t see a person, it could be a widget, same thing. This is why the profit motive doesn’t work for healthcare. Remember any care given is considered a loss in their mind. I’m sorry but these people are evil, if they have lost their basic sense of humanity. Some believe they will be judged before God when they die, I guess they can say “it was just business”. I’d like to see how that goes over.
Maximize profits, just take all the money they can, out for shareholders, is that how we think about human life. The problem is these executives don’t see a person, it could be a widget, same thing. This is why the profit motive doesn’t work for healthcare. Remember any care given is considered a loss in their mind. I’m sorry but these people are evil, if they have lost their basic sense of humanity. Some believe they will be judged before God when they die, I guess they can say “it was just business”. I’d like to see how that goes over.