Health care or wealth snare

The following are notes I took this morning on a presentation on health care fraud titled "Lifting the veil:  The Citizens Federation’s discoveries of financial mischief by insurance executives and regulators".  It was given by Buddy Robinson of the Citizens Federation at the Lake Superior Freethinkers meeting.

His talk was based on "Who Is Minding the Store", a report by the Citizens Federation.

Added up numbers and found that non-profits took profits.  Put into reserves which became excessive – twice the safe amount and four times the required amount.

Reserves went into investments which in turn increased reserves.  Insurance companies didn't report this to Minnesota legislature.

Several Minnesota counties are dealing directly with the state for employees' health care.  Some are now considering opening to public.

Strange things found about financial reporting.  CEO compensation reported at half actual - Health Partners

Money from state increased at greater rate than payments to providers.

Overpayment reimbursement not in contracts but if fraud involved then overpayments can be recovered.

Insurance companies don't want to divulge payments to providers.

State allowed companies to police themselves.

Motivation?  Medica contracts with former parent UHC, giving it 2/3 of income.

Insurance companies use government money to subsidize commercial policy losses.

Private insurance was to save money; it wound up costing a lot more.

Are HMOs too big to fail or jail?

End of my meeting notes.

So much for the efficiency of private enterprise.  Efficiency (sometimes) in lining corporate management pockets!

I gave as my comment Adam Smith's "The proposal of any new law or regulation of commerce which comes from this order…"  See "The Invisible Adam Smith".

Do we really need people who think like this?

“Why do we have state parks, city parks, county parks and regional parks?  Of course we value our parks and open spaces. It’s one of our great gems. But do we really need four different bureaucracies dealing with that?”
– Annette Meeks, CEO of the conservative Freedom Foundation of Minnesota and the Republican candidate for lieutenant governor in 2010, quoted in "Minnesota budget standoff a battle over big-spending legacy", Duluth News Tribune, 2011-07-08.

I don't think Ms. Meeks understands that different levels of government serve different needs.  Do we want the county or state running Enger Park, the Rose Garden, or Chester Bowl?  We in Duluth would like to control our own parks.  Would the people of Hennepin County like the state to run its extensive park system?  I think they would want to determine how they are run.  Conversely, should Lake County control Gooseberry Falls when it is a treasure for people all over Minnesota.

Does she think that we shouldn't have four bureaucracies dealing with city streets, county roads, state highways, and the Interstate?  Each serves a different constituency.  Would she want a county deciding that an Interstate in the county should be a two-lane road?  Would she want the federal government deciding to put an eight-lane highway where her house is?

I think she is mixing "efficiency" (spending the least possible money) with "effectiveness" (meeting the needs of customers or citizens).