A CONVERSATION BETWEEN PHYSICIAN FRIENDS:
Our conversation then migrated to a discussion about the relationship between health care providers and the insurance industry. My friend commented that the general perception at his insurance company is that the relationship is adversarial at best, and that providers are the main reason that health costs are so high. We talked about this for a very long time. I pointed out that most physicians and practices are making less now than they ever have, but that the insurance companies are making more than they ever have.
Newspaper and journal headlines nationwide have reported on the record profits of a number of large health insurance companies in t...

A CONVERSATION BETWEEN PHYSICIAN FRIENDS:
Our conversation then migrated to a discussion about the relationship between health care providers and the insurance industry. My friend commented that the general perception at his insurance company is that the relationship is adversarial at best, and that providers are the main reason that health costs are so high. We talked about this for a very long time. I pointed out that most physicians and practices are making less now than they ever have, but that the insurance companies are making more than they ever have.
Newspaper and journal headlines nationwide have reported on the record profits of a number of large health insurance companies in the past few years. The CEO of United Health Care (reportedly America's largest health insurance company) personally earned more than $90 million in 2003 and more than $120 million in 2004 in salary and incentives. Other company executives also received multimillion dollar packages. I haven't seen the 2005 or 2006 figures for United Health Care executives, but I suspect that there will be similar findings.

Profits and Performance Over Patients
My friend admitted that a large focus of his insurance company's day-to-day operations is to increase profits and decrease expenses—this, from a company that is nonprofit. All profits the insurer does earn are "reinvested" into programs and services within the company. Profits also are invested in a number of other places to increase income for the company to ensure a good long-term profitability plan. Of course, the executives of this company make pretty good money, too.
I find it interesting that the insurance company considers us health care providers to be the "enemy," but that incomes for us and our practices have been declining steadily for years. MORE AT: http://physician-assistant.advanceweb.com/Editorial/Content/Editorial.aspx?CC=81403