Re: The Factors Fueling Rising Healthcare Costs 2006

[Guest guest]

Is this really true? that insurance companies on the whole are only skimming off 3% into profit? And that their administrative costs are only 6%? ReaLLY? LynnTo: From: lockek@...Date: Sat, 2 Feb 2008 15:56:30 -0700Subject: The Factors Fueling Rising Healthcare Costs 2006

This article explains some of the issues.

http://www.ahip.org/redirect/PwCCostOfHC2006.pdf

The Factors Fueling Rising Healthcare Costs 2006

Locke, MD

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[Guest guest]

Lynn,

I read the same thing and couldn’t

believe this either. Remember, the research was funded by the insurance

industry. Then again, maybe I’m jaded. I know the non-profit hospitals in

my area work on a 5-8% margin. I can’t imagine the insurance companies

making less than that. Then again, maybe the CEOs salaries are considered part

of the “business expenses” and not part of the profit.

The Factors Fueling Rising Healthcare

Costs 2006

This article

explains some of the issues.

http://www.ahip.org/redirect/PwCCostOfHC2006.pdf

The Factors Fueling Rising Healthcare Costs 2006

Locke, MD

Climb to the top of the charts! Play the word

scramble challenge with star power. Play now!

[Guest guest]

Medicare MCOs taking 10-15% of premium, Medicare separate takes 3%

Matt in Western Pa

The Factors Fueling Rising Healthcare Costs 2006

This article explains some of the issues.

http://www.ahip.org/redirect/PwCCostOfHC2006.pdf The Factors Fueling Rising Healthcare Costs 2006 Locke, MD

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[Guest guest]

The consumers reports article had a different percentage for profits and administration. I can't find it right now either. Also I have seen somewhere (med econ? fp management?) some breakdown by insurance co of their administrative costs and profits. KrisWho's never won? Biggest Grammy Award surprises of all time on AOL Music.

[Guest guest]

. Then again, maybe the CEOs salaries are considered part

of the "business expenses" and not part of the profit.

.

I have long figured that The CEos' make millions in various ways like stiock options etc i mean come on.pardon my cynicsimi believe not a shred of anything they say ever.I suppose i do have to admire them The cleverness of their evil knows no bounds.

-- If you are a patient please allow up to 4-8 hours for a reply by email/please note the new email address/e mail may not be entirely secure/ MD

ph fax

[Guest guest]

Even by these industry-provided numbers, I'd say administrative costs

are 11%, although they split 5% off as " Consumer services, provider

support, & marketing "

Haresch

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> Is this really true? that insurance companies on the whole are only

skimming off 3% into profit? And that their administrative costs are

only 6%? ReaLLY?

> Lynn

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> To:

> From: lockek@...

> Date: Sat, 2 Feb 2008 15:56:30 -0700

> Subject: The Factors Fueling Rising

Healthcare Costs 2006

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> http://www.ahip.org/redirect/PwCCostOfHC2006.pdf

> The Factors Fueling Rising Healthcare Costs 2006

> Locke,

> MD

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> _________________________________________________________________

> Climb to the top of the charts! Play the word scramble challenge

with star power.

>

http://club.live.com/star_shuffle.aspx?icid=starshuffle_wlmailtextlink_jan

>

[Guest guest]

Sounds about right from what I've read previously. Even 3-6% is a lot

of money when you remember that total health care spending was about 2

trillion dollars, or 16% of our GDP. 6% is certainly wasteful,

considering that medicare overhead is supposed to be about 2% or less.

But the fact is, that changing how the system is administered or

removing profit margins is not going to solve the spiraling cost

problem. Here in Minnesota all HMOs/Care Plans are required to be

" not-for-profit " and it doesn't help much. More people are simply

spending more money on more care, and the things they ask for are more

expensive all the time. Think of all the new and improved things that

we spend money on, common now that weren't 10-20 years before:

Statins/Stents/2s/ARBs/CT Scanners/MRI machines/Laproscopic Gastric

Bypass/You name it.

The question is, did we get 6.7% healthier/happier/longer lived for

that 6.7% $ increase last year?

The only way to control costs will be to limit the development of new

and expensive technologies with minimal life-extending benefit by

halting demand through the " rationing " of care in some way, but I

don't see any US politicians working on that one.

.

>

> Is this really true? that insurance companies on the whole are only

> skimming off 3% into profit? And that their administrative costs are only

> 6%? ReaLLY?

> Lynn

>

> ________________________________

> To:

> From: lockek@...

> Date: Sat, 2 Feb 2008 15:56:30 -0700

> Subject: The Factors Fueling Rising Healthcare Costs

> 2006

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>

>

>

>

> This article explains some of the issues.

>

>

> http://www.ahip.org/redirect/PwCCostOfHC2006.pdf The Factors Fueling

> Rising Healthcare Costs 2006

> Locke, MD

>

> ________________________________

> Climb to the top of the charts! Play the word scramble challenge with star

> power. Play now!

[Guest guest]

It's easy to find out, it's public information.

________________________________

From: on behalf of Brady, MD

Sent: Sat 2/2/2008 6:53 PM

To:

Subject: RE: The Factors Fueling Rising Healthcare Costs

2006

Lynn,

I read the same thing and couldn't believe this either. Remember, the research

was funded by the insurance industry. Then again, maybe I'm jaded. I know the

non-profit hospitals in my area work on a 5-8% margin. I can't imagine the

insurance companies making less than that. Then again, maybe the CEOs salaries

are considered part of the " business expenses " and not part of the profit.

The Factors Fueling Rising Healthcare Costs

2006

This article explains some of the issues.

http://www.ahip.org/redirect/PwCCostOfHC2006.pdf

<http://www.ahip.org/redirect/PwCCostOfHC2006.pdf> The Factors Fueling Rising

Healthcare Costs 2006

Locke, MD

________________________________

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power. Play now!

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[Guest guest]

by the way, that is not skimming profit, that is earning profit just like we do.

________________________________

From: on behalf of Lynn Ho

Sent: Sat 2/2/2008 5:39 PM

To: practiceimprovement1

Subject: RE: The Factors Fueling Rising Healthcare Costs

2006

Is this really true? that insurance companies on the whole are only skimming

off 3% into profit? And that their administrative costs are only 6%? ReaLLY?

Lynn

________________________________

To:

From: lockek@...

Date: Sat, 2 Feb 2008 15:56:30 -0700

Subject: The Factors Fueling Rising Healthcare Costs

2006

This article explains some of the issues.

http://www.ahip.org/redirect/PwCCostOfHC2006.pdf

<http://www.ahip.org/redirect/PwCCostOfHC2006.pdf> The Factors Fueling Rising

Healthcare Costs 2006

Locke, MD

________________________________

Climb to the top of the charts! Play the word scramble challenge with star

power. Play now!

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