How Similar is Wall Street to the Health Insurance Business
Posted Jun 07 2009 10:42pm
This is a rather long but very informative “diary” written with both opinion and fact as to why our current health insurance plan is not working. Some of the facts mentioned that I found interesting was the budget of AARP for example which is 1 billion a year and 700 million of that is derived from selling insurance and further goes to state that AARP is a broker disguised as an advocacy group.
The article also states that insurance carriers divert on the order of $350 billion of insurance premium money from actual medical care, the size of the peacetime Pentagon budget. Myself I have posted quite a bit about Ingenix, a subsidiary of United Health Care and this article also goes into detail about some of what has occurred therein as well.
Most of the Insurance carriers also have Venture Capital investment areas too, and that of course it not money going to pay for medical services, but rather for technology they feel that will help cut costs. Some of the technology just might in fact do that, but the sad end of the entire story is that it has not been a partnership with providers and hospitals, but rather a feeding frenzy. One senator, heading an investigation even asked the CEO of United Health Care how he was able to sleep at night.
Just a thought, but why didn’t the Health Insurance business bail out Wall Street? They have some very large reserve cash funds and perhaps totaled all together are 2 or 3 trillion sitting around as rainy day funds. These funds are required by law, but some states were even challenging the amounts that were being socked away.
Most people are unaware how similar the major health insurers are to our failed Wall Street firms. They are corporate cash cows and have virtually no fiduciary responsibility and few activities for protecting or improving health or the health care system.They will devote their vast resources to prevent any meaningful health reform . They have controlled Congress and the mainstream media. The only cure is vigorous popular support for a single payer, Medicare for All reform.