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Article #874

Re: Health Care Insurance Reform

#874
From: Alan Jeddeloh
Date: Thu, 28 Jan 1993 18:00
42 lines
2473 bytes
In article <1993Jan26.170516.3949@fylz.wa.com> fyl@fylz.wa.com (Phil Hughes) writes:

> (summary of some of the problems with the current health care non-system)
>...
>General:

 - Price gouging by drug companies.  Companies milk a product until its
   patent runs out, then RAISE the price when generic equivalents become
   available.  When the government dictates a discoount for government
   programs, the company simply raises the list price so the government
   program pays the old list price.

   Drug prices in the US run from 2 to 10 times the price for the same
   drugs in other countries.

 - Lack of meaningful competition in the industry.  Doctors and hospitals set
   prices for procedures and supplies.  Insurance companies attempt to control
   costs by limiting payments, and the patient is left holding the bag _ex
   post facto_.  (When was the last time you comparison (price/service) shopped
   for a doctor or hospital?)

 - Multiple-dipping for routine diagnostic tests.  For example, suppose you
   see a doctor because of chest pains.  The doctor decides he wants to see
   a chest X-ray.  The billing(s):
    (1) Office visit to doctor ($25-50)
    (2) X-ray charges from hospital (technician, supplies, etc.) ($50-100)
    (3) (Surprise!) bill from radiologist who actually read the X-ray
	(or from "Radiology Professionals, PC") (another $25-75)
    (4) (Insult to injury) "New patient" setup chages from radiologist
	(yet ANOTHER $25-50)

 - Doctors owning the labs they refer the patients to.  For example, most
   MRI machines in the US are owned by partnerships in turn owned by doctors.
   The doctors thus have an economic incentive to order diagnostics.  At the
   same time expensive equipment like MRI machines proliferate and there is
   to true competition between providers.
   
--
    Alan Jeddeloh      W:(503) 685-2991  H:(503) 292-9740
    Tektronix, Inc.; D/S 60-850; PO Box 1000; Wilsonville, OR 97070
    Alan.Jeddeloh@tek.com 
    You can put the children to bed, but you can't make them sleep!
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Message-ID: <2592@shaman.wv.tek.com>
Path: arc1-ca.pugleaf.net!sparky!uunet!news.tek.com!shaman!endeavor18!alanj
References: <1993Jan26.170516.3949@fylz.wa.com>

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Path: arc1-ca.pugleaf.net!sparky!uunet!news.tek.com!shaman!endeavor18!alanj
From: alanj@endeavor18.tek.com (Alan Jeddeloh)
Newsgroups: pnw.general
Subject: Re: Health Care Insurance Reform
Message-ID: <2592@shaman.wv.tek.com>
Date: 28 Jan 93 18:00:51 GMT
References: <1993Jan26.170516.3949@fylz.wa.com>
Sender: news@shaman.wv.tek.com
Distribution: pnw
Organization: Tektronix, Inc.
Lines: 42