FierceHealthcareFierceHealthITFierceHealthFinanceFierceEMRHospital ImpactFierceMobileHealthcare   FiercePharma

Blues suggest that public health insurance poses threat

Tools
Tags
government healthcare
Single Payer System
Medicare
Innovation
Financial Incentives
Blue Cross Blue Shield of America

Now here's a shocker: top execs from leading Blues plan are arguing that a public insurance plan will be bad for competition and could sneak in (gasp!) a single-payer system.

The main theme of yesterday's Blues conference was that government health plans "thwart innovation," apparently by, among other things, discouraging the plans from creating pilot projects that help them improve care.

For example, the CEOs of plans in Michigan, Missouri and New Jersey spoke about projects focused on wellness and patient-centered medical homes and wellness, which have lowered costs and improved outcomes.

If there was a government-run plan on the horizon (I guess Medicare doesn't count), such innovations would be impossible. The CEOs argued that Blue plans and other commercial payors would end up paying higher rates due to cost-shifting from public plans, limiting the commercial plans' ability to innovate.

That's their argument and they're stickin' to it. How about you--do you think the introduction of more public insurance would flatten the Blues or other commercial payors?

To learn more about the presentation by the Blues:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
PA Blues call off long-awaited merger
Blues say new financial incentives needed for reform
Blues study examines impact of cost-shifting

Bookmark and Share
Get Your FREE FierceHealthcare Email Newsletter:
Comments (6) | Post a comment

Comments

An absurd argument of course. Public plans throughout the developed world as well as in the US (Medicare, Medicaid and the VA) are certainly as "progressive" as private insurers, whose main contribution is maximizing administrative costs. The innovation we need most is eliminating unnecessary expense and the private insurance market provides the most obvious target - which they understand very well and attempt to counter with this sort of PR.

How can they do this:

"Starting April 1, Blue Cross' specialty pharmacy network will include just two vendors: Triessent, from Prime Therapeutics, and Fairview Pharmacy Services (for selected drug categories).

Triessent: Will supply the complete suite of all specialty pharmacy drugs to Blue Cross members

Fairview: While Fairview can supply a complete suite of specialty pharmacy drugs, they are contracted to supply drugs to Blue Cross members in these three categories:

Hemophilia
Infertility
Growth Hormone

It is important to note that the members whose groups provide access to the specialty pharmacy network will be responsible for 100 percent of the cost of their specialty drugs if they do not receive them through one of the specialty drug vendors."

And then say that? Especially when they own Triessent! First they want to create their own monopoly then they cry foul when they could end up on the loosing end!

what a bunch of self serving, short sighted malarkey. I know that in both Canada and in Great Britain their are innovations and studies and whole hearted efforts to provide high quality health care in an efficient and economical manner.
Maybe they are really saying that Americans are dumber than the people and resources in these other nations with single payer systems?
Maybe thay just don't want to compete, Competition is the American Way, bring it on baby.

It blows my mind that these private companies say they are worried about competition from the government. What's next? Fedex and UPS complain about competing with the Postal Service? Blackwater worries that the Army will put them out of business?

You cannot extol the virtues of the free market and at the same time refuse to compete.

Most of these brainwashed fools don't understand that insurance company expenses account for 4% of total healthcare spend in the US. If we want to save money why don't we just have a group of "Government" hopsitals and "Government" physicians, and pay them what they are paid in the UK, Canada, etc.

Basic economics- when competition decreases, prices increase. No one wastes more money then the govt. because what, are they going to loose their job? NO. Health insurance is out of control and needs reform but this is not the way. Private insurance has to keep costs competitive otherwise you go to another insurer- what happens when there is no one else to go to?

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.