Elizabeth Barrette (ysabetwordsmith) wrote,
Elizabeth Barrette
ysabetwordsmith
  • Mood: busy

Sauce for the Gander

It occurs to me that insurance companies (in general, but especially health insurance) have gotten into a habit of promising things they never deliver. "Bait and switch" is generally illegal, and grounds for lawsuit or complaint to chamber of commerce, Better Business Bureau, etc. And insurance companies often wind up owing people huge amounts of money that they refuse to pay. That's grounds for setting a collection agency on them.

I don't expect this sort of tactic would work very often; the companies are too rich and powerful. But if a LOT of people started suing the insurance companies and turning collectors onto them, it would drive them nuts, maybe even make them stop being so horrid. And halting that kind of attack would be a giant game of whack-a-mole, because there are millions of dissatisfied customers out there.
Tags: economics
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  • 29 comments
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ysabetwordsmith

Hmm...

ysabetwordsmith

September 12 2009, 17:54:43 UTC 11 years ago

>>Majority rules does not apply to science. A thing works or it doesn't.<<

If only it were that simple. That rule applies to many sciences that deal only with the abstract or concrete aspects of the world. It does not apply to many sciences that involve living things, and pretty much does not apply to any science involving humans. You just can't pin down all the variables. Even in conventional medicine, drugs and other treatments work well for some people, marginally for some, and not at all for others. This is especially true in some fields, such as cancer or mental health. And frankly a lot of those treatments are little better than placebos.

Conventional medicine works badly for me. I've had so many experiences where a thing worked poorly, not at all, or backfired that I approach only with great reluctance and an expectation that whatever they try many not work. That tends to subtract the placebo effect from everything, which means that very little works even close to as well as it's supposed to. And then people do not want to believe that when I tell them, until they have seen one of the bizarre results, which as you may imagine is not a demonstration I wish to furnish.

It makes me more flexible about what I consider "works" and "doesn't work." I approach everything with both hope and skepticism. If it works, I keep using it; if not, I try something else.

>>They couldn't stay in business if they didn't have many customers convinced that they provide services as advertised. They're like the chiropractors and neighborhood preachers, I think: successful con artists keep the rubes coming back for more.<<

Oh, they're great at convincing people. They sell "peace of mind." Which is great, unless you need to make a claim. Then you're screwed.
bemused_leftist

Re: Hmm...

bemused_leftist

September 12 2009, 18:57:26 UTC 11 years ago

There are two reasons for buying insurance.

1. 'peace of mind' against large bills, which may last only till the first large bill actually happens and isn't paid

2. getting value every few months on small bills, which may last only till the insurance company notices that you're a loss to the company

We'd have to find some figures, but the fact that people do keep buying insurance may be a result of #1 -- they haven't yet made a large claim so
expect it to be paid as advertised. Some people do this in case of their child unexpectedly coming down with something serious. An emotional reason, which may or may not be supported by the odds.

In fact a good many young healthy people have rationally chosen to go without insurance -- which is why Obama's plan will force them to buy it. (Some figures of its cost and payoffs at my LJ.)
ysabetwordsmith

Re: Hmm...

ysabetwordsmith

September 13 2009, 01:19:41 UTC 11 years ago

>>We'd have to find some figures, but the fact that people do keep buying insurance may be a result of #1 -- they haven't yet made a large claim so
expect it to be paid as advertised.<<

Some studies have supported that, yes. Another heavy support is that most bankruptcies (I think it's about 60% now) are for medical bills, and of those, most (about 80%) were from insured people.

>>In fact a good many young healthy people have rationally chosen to go without insurance -- which is why Obama's plan will force them to buy it.<<

No matter how healthy you are, you can still get hit by a car or something like that, so it's always prudent to have access to good health care. However, I'm extremely against any plan that FORCES people to buy health insurance. Most people who can afford it already have it; most people who don't have it can't afford it. And people who hate the industry shouldn't be forced to support the people who are getting rich from it.
bemused_leftist

Re: Hmm...

bemused_leftist

September 13 2009, 07:51:15 UTC 11 years ago

I agree (and so did Obama, during the campaign). Hillary did want a mandate, but she wanted several public options among the choices (as well as keeping your existing private coverage if you liked it).

The bill shaping up, with the mandate but little else, seems the worst of both worlds.
ysabetwordsmith

Re: Hmm...

ysabetwordsmith

September 13 2009, 13:50:43 UTC 11 years ago

A key problem is that there isn't just one bill, but several. The House and the Senate have at least one apiece, plus there's one (which almost nobody knows about) that proposes a single-payer plan. Most of the bills are a nightmare of arcane regulations and expensive jury-rigging. Powerful interests have pretty much ruled out anything that would actually lower costs or improve access and results.

So yes, the trend seems to be toward doing more harm than good. That makes me extremely angry.
cissa

Re: Hmm...

cissa

September 13 2009, 22:02:23 UTC 11 years ago

There's a third reason for buying insurance here in MA: it's legally required.

And this is considered a "model" for the whole country.