I've been out of the pharm business for over a year now and from what I've seen the major rise in their cost basis is due to the marketing/sales required to be competitive. This doesn't add to the value of the compounds or treatments but does add to the corporate accounts under our current system. The system does respond to economic pressures eventually and some gov regulation is helpful. Unfortunately, we all pay higher prices. Worldwide price controls will mean that the US will be paying more for innovation/new treatments to keep the system rolling. No simple solutions.
Economic fallout ....
- Thread starter TerryinMD
- Start date
Dave,
Another part of this is the for profit managed care companies can't cherry pick healthy enrollees anymore. Look at the companies pulling away from the Medicare HMOs. You can't pay the stockholders, pay huge salaries to upper level employees and insure older or chronically ill people.
Another part of this is the for profit managed care companies can't cherry pick healthy enrollees anymore. Look at the companies pulling away from the Medicare HMOs. You can't pay the stockholders, pay huge salaries to upper level employees and insure older or chronically ill people.
Cowboydoc,
Another reason in the big cities (probably in some rural areas too) is the cost of providing care for people with no insurance. There are lines hours long in most major city hospital emergency rooms for non-emergency care. It's all part of the vicious circle - the more people that can't afford health insurance, the more uninsured turn up at the emergency room.
I'm a dyed in the wool Republican, but healthcare is one instance where I have to think there is a very carefully controlled role for the government to provide a basic service. Those carrying health insurance end up paying for everyone one way or another anyway.
Perhaps tort reform (limiting right to sue) for health insurance just like some states have for auto insurance? That should knock the cost down somewhat.
Patrick
Another reason in the big cities (probably in some rural areas too) is the cost of providing care for people with no insurance. There are lines hours long in most major city hospital emergency rooms for non-emergency care. It's all part of the vicious circle - the more people that can't afford health insurance, the more uninsured turn up at the emergency room.
I'm a dyed in the wool Republican, but healthcare is one instance where I have to think there is a very carefully controlled role for the government to provide a basic service. Those carrying health insurance end up paying for everyone one way or another anyway.
Perhaps tort reform (limiting right to sue) for health insurance just like some states have for auto insurance? That should knock the cost down somewhat.
Patrick
MikePA
Super Moderator
<font color=blue>I'm a dyed in the wool Republican, but healthcare is one instance where I have to think there is a very carefully controlled role for the government to provide a basic service. </font color=blue>
I am as well. My only concern with this approach is that politicians, being politicians, will slowly expand the program just as they've done with Medicare. Then we'll end up in the mess Great Britain is in; long lines, poor care, program cost increases.
Another item that drives up costs is mandated benefits. Just recently chiropratic (sp?) became a mandated benefit here in PA. Here in PA we also have a malpractice insurance crisis that is driving docs out of the state. A resident (OBGYN) at Hershey Medical Center (owned by Penn State) said they are seriously considering going to NC to practice. The annual malpractice premium in NC is $10,000. Here in PA it'd be $100,000! /w3tcompact/icons/shocked.gif because we have no limits on pain and suffering awards.
Back to Terry's original post...I find it appalling that people would find out about things on the Internet before hearing it from the company. I would send an email/letter to the HR/Benefits department (or whomever is responsible for administering the program and the news about same) and politely pointing out to them the error of their ways.
I am as well. My only concern with this approach is that politicians, being politicians, will slowly expand the program just as they've done with Medicare. Then we'll end up in the mess Great Britain is in; long lines, poor care, program cost increases.
Another item that drives up costs is mandated benefits. Just recently chiropratic (sp?) became a mandated benefit here in PA. Here in PA we also have a malpractice insurance crisis that is driving docs out of the state. A resident (OBGYN) at Hershey Medical Center (owned by Penn State) said they are seriously considering going to NC to practice. The annual malpractice premium in NC is $10,000. Here in PA it'd be $100,000! /w3tcompact/icons/shocked.gif because we have no limits on pain and suffering awards.
Back to Terry's original post...I find it appalling that people would find out about things on the Internet before hearing it from the company. I would send an email/letter to the HR/Benefits department (or whomever is responsible for administering the program and the news about same) and politely pointing out to them the error of their ways.
Patrick,
You bring up some interesting points about assisting in the cost sharing for less fortunate people and some well-defined Government Roles in controlling the healthcare industry. And as far as tort reform, well, I think that that is long overdue (in many areas - just not healthcare /w3tcompact/icons/crazy.gif).
Limited Government Roles aren't bad, but.... you know how that can turn out. /w3tcompact/icons/crazy.gif Tort reform.... who creates the laws governing tort reform... /w3tcompact/icons/crazy.gif
Now what do you folks know about healthcare insurance profits and their G&A. Do the big insurance houses have a lot of overhead, bonus programs, and large underutilized staffs? We all know that bigger is not necessariliy better.
Terry
You bring up some interesting points about assisting in the cost sharing for less fortunate people and some well-defined Government Roles in controlling the healthcare industry. And as far as tort reform, well, I think that that is long overdue (in many areas - just not healthcare /w3tcompact/icons/crazy.gif).
Limited Government Roles aren't bad, but.... you know how that can turn out. /w3tcompact/icons/crazy.gif Tort reform.... who creates the laws governing tort reform... /w3tcompact/icons/crazy.gif
Now what do you folks know about healthcare insurance profits and their G&A. Do the big insurance houses have a lot of overhead, bonus programs, and large underutilized staffs? We all know that bigger is not necessariliy better.
Terry
MikePA
Super Moderator
<font color=blue>Now what do you folks know about healthcare insurance profits and their G&A. Do the big insurance houses have a lot of overhead, bonus programs, and large underutilized staffs? We all know that bigger is not necessariliy better.</font color=blue>
Typically, you can look at how much of every premium dollar are returned in benefits. Just like charities, returning over 90 cents of every premium dollar is a good rule of thumb.
Typically, you can look at how much of every premium dollar are returned in benefits. Just like charities, returning over 90 cents of every premium dollar is a good rule of thumb.
Mike,
Yes, that's not a bad idea but I know that there will be some repercussions due to the complaints issued by the "rank and file" up the management chain. We have a highly motivated staff with some devoted managers who hate the corporate "geniuses".
Human Resources - hah, in most cases these departments are nothing but a joke anymore. Sorry for the bitterness, but I've worked with three or four companies now that have had terrible HR departments.
Just this week, a friend of ours works for a large credit card processing company. The company changed payroll processing companies. The new company completely fouled up the electronic check deposits for several thousand employees. The HR department WOULD not take any phone calls or unlock their doors to help the employees. The sign on the HR department door simply said, "We cannot help you with this problem." I heard that and was shocked. If they would have said, we know about the problem and are working the issue. That would have bought them a lot of goodwill. But, NOOOOOOO....
Terry
Yes, that's not a bad idea but I know that there will be some repercussions due to the complaints issued by the "rank and file" up the management chain. We have a highly motivated staff with some devoted managers who hate the corporate "geniuses".
Human Resources - hah, in most cases these departments are nothing but a joke anymore. Sorry for the bitterness, but I've worked with three or four companies now that have had terrible HR departments.
Just this week, a friend of ours works for a large credit card processing company. The company changed payroll processing companies. The new company completely fouled up the electronic check deposits for several thousand employees. The HR department WOULD not take any phone calls or unlock their doors to help the employees. The sign on the HR department door simply said, "We cannot help you with this problem." I heard that and was shocked. If they would have said, we know about the problem and are working the issue. That would have bought them a lot of goodwill. But, NOOOOOOO....
Terry
Mike,
<font color=blue>Typically, you can look at how much of every premium dollar are returned in benefits. Just like charities, returning over 90 cents of every premium dollar is a good rule of thumb. </font color=blue>
Yes, but is this the case? /w3tcompact/icons/shocked.gif
Terry
<font color=blue>Typically, you can look at how much of every premium dollar are returned in benefits. Just like charities, returning over 90 cents of every premium dollar is a good rule of thumb. </font color=blue>
Yes, but is this the case? /w3tcompact/icons/shocked.gif
Terry
MikePA
Super Moderator
Terry, I completely understand about your HR department, unfortunately. I am constantly surprised (perhaps that's an oxymoron /w3tcompact/icons/smile.gif) that people give service that they would never accept as a customer. I don't understand. This is something I have to keep reminding the staff in my department of, i.e., "Would you like to receive the same customer service you provide?".