Difficulties With Insurance Carriers Lead to High Cost of Healthcare

With the cost of delivering quality healthcare onthe consistency with which these "Insurance
the rise, insurance companies continue to add toCompany Supervisors" seem to have more
the problems facing physicians nationwide. Manydetailed information available to them. In the end,
people believe doctors spend the majority of theirit often takes more than one insurance company
time on golf courses while earning millions ofrepresentative and 45 minutes of time to receive
dollars. That may have been true in the past, butrelevant information pertaining to just one
today there are formidable obstacles preventinginsurance claim.
those that provide care from collecting their fees.With this being the case, one can see how the
These days many physicians are forced toterm "wasteful healthcare spending" is so
write-off a large portion of revenue due to thecommon today. It seems as though the insurance
unreasonable practices of insurance carriers.companies are wasting time and money every
Insurance companies employ teams ofday. Insurance companies profit billions of dollars
representatives responsible charged with theeach year while making it extremely difficult for
receipt, processing, and servicing of insurancehealthcare providers to receive reimbursement
claims. When healthcare providers submitfor the services they perform. Even after
insurance claims, they are forced to follow-uphealthcare providers verify coverage and obtain
vigorously in order to ensure that they receiveprior authorization, insurance companies still delay
reimbursement. The process of submitting andpayments and deny claims.
following up on claims is marred with holes andA recent report from PriceWaterhouseCoopers
inconsistencies making it difficult to communicatestates that "inefficient claims processing" is the
with insurance carrier representatives. Aftersecond largest are of wasteful healthcare
navigating through a maze of automatedspending, costing as much as $210 billion annually.
responses, healthcare providers and their billingThe New England Journal of Medicine reports that
representatives are lucky to actually reach a livebilling and overhead expenses consume as much
person. Once reaching a representative, all theas 43% of a physicians annual revenue. With
information previously submitted must then bestatistics that these, it's no wonder the cost of
re-verified as if none of the previous entries werehealthcare is spiraling out of control. Insurance
recognized.companies are profiting while individuals can hardly
As if the process had not been time consumingafford coverage, and helathcare providers find it
and difficult enough, healthcare professionalshard to turn a profit. Surely something is wrong.
usually realize that the person on the other sideAlthough healthcare professionals are focused on
of the line only has basic information available toreducing costs and expanding coverage, they
them. What's worse is that they usually expectcannot do it alone. If we are to be successful
providers to simply accept the lack of informationcontrolling the rising costs associated with
available and move on. In most cases, providershealthcare, insurance companies and government
and their staff must demand the help of aregulators must commit to change. Only through
supervisor just to receive any sort of reasonablea concentrated, coordinated effort will we achieve
insight in to the matter at hand. What's funny isaffordable healthcare.