The Sacramento Bee
October 29, 2003
Health plan a sign of future?
Blue Cross offers lower premiums — but higher costs down the line.
By Lisa Rapaport
The day after insurance giants Anthem Inc. and WellPoint Health Networks
Inc. announced a merger deal that could create the biggest health plan in
America, WellPoint’s largest subsidiary unveiled a new product that many say
indicates where this huge insurer may lead the health care market.
Continuing the race to create health plans that lower premiums by charging
patients higher fees for doctors and hospitals, Blue Cross of California
said Tuesday it will sell a new individual health plan called RightPlan. It
has monthly premiums as low as $70 in Sacramento, but it requires patients
to pay $40 for doctor visits and 40 percent of hospital bills.
One aspect of RightPlan that Blue Cross officials said is essential to achieving low premiums is cause for particular concern in the medical community. Blue Cross intends to market the policy to people ages 18 to 34 — the most likely to be uninsured — but the plan does not include maternity coverage.
Known as consumer-driven health plans, policies such as RightPlan have cropped up with greater frequency in recent years as insurers have responded to demands from consumers and employers to curb steep premium increases.
… many health experts believe this latest Blue Cross offering is a good
indicator of what lies ahead.
At Blue Cross, officials would not speculate on whether RightPlan was a sign
of things to come. Spokeswoman Kellie Bernell said the company’s goal in
expanding its selection of consumer-driven plans in recent years has been to
reduce the rolls of the uninsured by offering affordable premiums.
The focus on fees for doctors and hospitals in these plans misses other aspects that may appeal to consumers, Bernell said. RightPlan includes discounts on gym memberships and weight-loss programs, as well as access to acupuncture and other types of alternative medicine.
Anthony Wright, executive director of Health Access, a patient advocacy group based in Sacramento:
“In California, Blue Cross has been a leader in pushing more costs to consumers. They do this and keep diluting the value of insurance. The point of insurance is to not worry about your bank account when you go to the doctor, and insurers seem to increasingly be missing this point.”
http://www.sacbee.com/content/news/medical/story/7688509p-8628347c.html
Comment: The crisis in affordability of health care is of great concern to nearly all Americans. The most visible manifestation of this crisis for the average, relatively healthy individual is the premium paid for health insurance. The insurance industry is acutely aware of this perception and has responded by designing products with affordable premiums. Although these have been targeted to the individual market, employers are now showing interest in these consumer-driven products in order to reduce the costs to them of their health benefit programs.
The United States is unique in its refusal to establish national policies that would contain the exploding health care costs while equitably distributing our finite resources amongst all of us. Without such policies in place, controlling premiums can only result in shifting costs to individual patients. But how many families can afford to pay 40% of the costs of a major hospitalization? The fundamental concept of insurance is being challenged by these consumer-driven programs. Policy studies supporting the importance of health insurance coverage lose their validity when cost sharing becomes unaffordable.
Unfortunately, this movement in health care reform plays into the hands of the ideologues. By shifting costs to individuals, the role of governmental public programs would be reduced. But these ideologues are not only opposed to a greater role of government, they also oppose any collective, societal effort to reduce exposure to the costs of untoward health events.
Pooling risk through nonprofit insurers is a collectivist approach that diminishes the role of individual responsibility in meeting fundamental needs. Although they use the “consumer empowerment” rhetoric, in reality they support the concept that those who “refuse” to achieve success and independence through individual effort should not share in the rewards common to the rest of us.
Let’s not fall into the trap of entering their deceptive rhetorical world which would continue to lead us down the path toward expansion of their highly flawed, inhumane policies. Our simple rhetoric of affordable, comprehensive health care for everyone instead should redirect us down the ethically-sound path toward health security for all.
