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NAVIGATION PNHP RESOURCES
Posted on January 5, 2006

To avoid the cruelest cut of all

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By Glenn Hameroff
Community Voices
Daytona Beach News-Journal
January 04, 2006

I was dismayed to read in The News-Journal on Saturday that as many as 65,000 local residents may be denied access to Flagler Hospital. This recent episode, coupled with the estimated 45 million Americans without health insurance, causes me to wonder why our government permits health care to be rationed based upon wealth. When health-care emergencies occur, a few extra minutes can mean the difference between life and death. It is particularly disturbing that this accident waiting to happen is the result of squabbling over money between two health insurance entities.

The significant issue, in this threat to reduce access to Flagler Hospital, is the rate of reimbursement that the Florida Health Care managed care plan pays to the Flagler hospital. On the surface this conflict seems to be waged by accountants employed by the hospital and the health-care insurer. The reality is that our health insurance edifice is hampered by the waste created by having more than 1,200 private health insurance companies in the United States. The conventional wisdom that competition ensures efficient use of scarce resources does not hold sway in the health-care delivery system.

A logical analysis of the realities of our health-care delivery system results in the conclusion that we would be better served by a single payer health-care insurer. Health care is a human right, not a battle between an insurance company and a hospital. The efficiencies achieved by employing economies of scale could go a long way to reducing the number of uninsured Americans.

According to popular belief, the existence of hundreds of companies ensures greater competition and lower costs. A fundamental tenet of the conventional wisdom alleges that if you really want to screw things up, let the government run the industry. References are made to the post office as an example of the chaos and inefficiencies that would result. Yet when you examine the facts regarding the costs of handling a medical claim, Medicare is the most efficient health-care insurer. Private insurance providers cost anywhere from five to 20 times Medicare’s per unit expenses. This fact should be widely revealed to the American people.

Hameroff, a retired history teacher, lives in Palm Coast.