Private HMOs cost more to Medicare: study

[deadparrot]

CHICAGO (Reuters) - Private insurers in the Medicare insurance program were paid 12.4 percent more by the government than the health care provided would have cost under traditional Medicare, a report released on Thursday said.

Payments to private insurers were $922 more per enrollee in 2005 than they would have been to the government-run program, the report by the nonprofit research group the Commonwealth Fund said.

Private managed-care companies have taken a bigger role in Medicare, the health insurance program for 43 million elderly, after recent changes pushed by President George W. Bush and the Republican-led U.S. Congress.

Supporters argued that the extra payments were needed to lure insurers to the program, and that competition would drive efficiency at lower costs.

http://news.yahoo.com/s/nm/hmos_medicare_dc

[goddess40]

1. DUH - private means somebodies making a profit

so it drives the cost up and in the case of insurance it drives the cost way up as do hospitals that like to make mega profits.

[mom cat]

3. Spot on!

[ThomCat]

5. It's amazing that when people talk about privitizing services

they forget about the profit margin, and pressures from stockholders and wallstreet.

[Dr.Phool]

9. It applies to other gov't services too.

My wife works for the "privatized" agency in Florida that handles foster ghild care and adoptions in 2 counties. To make it on budget, the same employees were re-hired at lower wages and no benefits.

2 years ago, they skimped and scraped to stay within their budget. Their reward. The budget was cut by $5 million dollars the following year. Caseloads were increased waaay over the maximums. If they were still a state agency, they could request a supplemental increase. But, not when they were under contract. And btw, their caseload nearly tripled the year they took the cut. And, it's a fixed dollar amount. Not a per child rate.

[qwlauren35]

2. What's the alternative?

Are they talking about the Medi-gap?

Which are the "private" insurers? Are there "public" HMOs or "public" managed-care companies?

[GoldenOldie]

7. It's the Privatization of Medicare

The Government (We The People), have quietly contracted out the Medicare functions for Arizona State Retirees....I am sure it has also been done for other large groups. I know this to be true because my s/o and I have been helping my sister who was diagnosised with pulmonary fibrosis and retired with her Medicare and as a State employee with full medical benefits. Prior to her retirement, her employers group insurance was first payer and Meicare second. Upon retirement she was expecting it to reverse and she fully understood, who paid what and when. The State Retirement personnel informed her that 2006, Medicare had contracted with Secure Horizons (State Employee Insurance Co), to handle all functions.........Nothing is handled by Medicare and if you have complaints regarding why a bill was not paid......Good Luck in getting anyone to talk to.

It appears that once again, the "IN" thugs are stealthly doing their dirty tricks in DC.

[Gormy Cuss]

8. Private insurers, using an HMO format to cover the Medicare- eligible

Humana is one of the big providers.
It's not Medi-gap, but one of the selling points of the HMO/PPO option is that there's no need for Medi-Gap because it's like any other managed care plan and covers all but the low co-pays.

[denverbill]

4. What BS.

If extra payments were required to 'lure' insurers in, that proves they can't compete on cost against publicly run insurance.

I say if some private company wants to attempt to provide the same coverage to all eligible Medicare recipients (not just the healthiest ones) and they will accept even $1 LESS than it costs the govt per patient, then go for it. Otherwise, it proves that they cannot compete, and the myth of competition driving efficiency is bull.

[ThomCat]

6. Exactly.

They should be restricted to a maximum of what government coverage costs, and they should be required to provide at least the same service.

[Selatius]

10. Efficiency my ass.

It is a boondoggle. We were sold down the river when this piece of legislation written by corporatists was passed by Congress and signed by Bush.

[nealmhughes]

11. Lordy, Lordy, Miss Rand has learnt a new word! From the grave!

"Efficiency." "Altruism is a vice." "He had to destroy the building to save it."

Bunch of pseudo-intellectual shit to justify greed. One old bat god PO'ed becuase Bahtushka's drugstores got socialized in Petersburg and went on a 60 year rant...

I guess some people don't want to admit they are greedy pigs.