YOU WANNA CUT MEDICAL COSTS? Get rid of the unnecessary overhead. Cut out the use of insurance for first-dollar coverage. Why? Because it leads to this “divisional wedge.”
In the last 30 years the number of claims people, analysts, customer service reps, management for those people, and management for the managers at insurance companies have skyrocketed. All those people have to justify their jobs. How do they do it? Just like all good bureaucrats! They request more and more paperwork. Most offices have a 4 or 5 to 1 ratio of employees to Doctor or provider. One of those is the nurse, all the rest are paper pushers. If there are two or more providers in an office, you can bet that there will be at least one nurse whose job is making sure that all the requested tests, Xrays, referrals and other paperwork is completed so that all the insurance companies are happy. On average, every insurance company has twice the number of staff that the office has. All those people provide absolutely NOTHING to the care of the patient, but they all have to be paid! If we are to have any hope of improving the system, we have to cut out all the middlemen and women who just handle paper.
Spotted at Joe Huffman’s place. You can read the whole thing there.