As a small claims payor I am always keeping my eyes open for experienced claim processors by searching resume boards. The last few months I have seen a large number of adjusters that used to work for Anthem. Normally you don't see adjusters leaving the large carriers as they pay great and have better benefits and retirement opportunities. Seeing a couple let alone a dozen is rare. In speaking with a few of them I was told they outsourced their claims processing to the Philippines and India. This got me wondering what this foretells of the future.
If you're a carrier and you're locked into 15% of revenue, do you spend that money on claims adjusters to control your claims cost, and thus reduce your revenue...
...or do you auto-adjudicate as many claims as you can, 70-80%+, then outsource the remaining claims to some low cost foreign country? They won't do as good of a job (meaning they will pay more in claims then they should) but that actually increases their revenue, a perverse reward for a job poorly done.
This has been the Medicare model for decades and resulted in the most inefficient and fraud ridden program in the country. But if no one is directly paying the bill who cares? Medicare beneficiaries pay a minute fraction of the actual cost of their benefits so they don't care if 10%+ is lost to fraud. If the majority of the exchange members are going to be subsidized they won't mind either. The only people that would care are workers actually paying federal taxes, a minority when it comes to voting.
From the anecdotal evidence I have seen so far, it appears private insurance is adopting the worst qualities of Medicare already, before the exchanges even start.
For claim processors, 60% of expenses going to salaries is normal; if you drastically reduce that the business goes from low margin commodity to very profitable very quickly.
Senin, 26 November 2012
Langganan:
Posting Komentar (Atom)
Recent Posts
Popular Posts
-
For those in the path of Hurricane/TS Sandy (and/or for those who may face other severe weather conditions) the Insurance Information Instit...
-
So it appears that women "of a certain age" may well benefit from not one, but two shots of the good stuff: " A glass or two...
-
I've always subscribed to the conventional wisdom that emptying a full bladder as soon as (practically) possible was always the "wa...
-
HHS Secretary Shecantbeserious may be relaxing some privacy rules: " The Department of Health and Human Services says patients should h...
-
Nina Kallen hosts this week's outstanding collection of risk-related posts , with a twist: she's nicknamed this edition "the...
-
■ First the bad news. From the Annals of the Much Vaunted National Health System© comes this alarming development: " Almost half of Bri...
-
HHS is spending $700 million of YOUR money to teach you something your parents did not. In an effort to save Obamacare the government is hop...
-
An overarching theme here at IB has been that health care costs drive health insurance costs. While this may seem obvious to us, it bears ...
-
FoIB Michael Cannon , the Cato Institute's Director of Health Policy Studies, alerts us to this outstanding video that perfectly illustr...
-
It amazes me how often I see comments like this from Jodi Kantor of the NY Times: " By summer 2009, with the country still stunned by e...
0 komentar:
Posting Komentar