Insurers reaping record profits

Whatever the battle over the fix, something's got to give.

I am among the increasing number of insured workers who forgo or delay health care due to costs and budgeting. With everything else going up - gas, food, and premiums ranking highest - Americans are going to the doctor less often, making shorter hospital stays, and skipping out on expensive drugs. That was confirmed in January by two of the largest insurers, Cigna and United Health, commenting on hefty fourth quarter profits.

So while we pay more for less care, insurers are raking it in.

The industry as a whole reported record-breaking profits three years running. According to a New York Times report on May 13, premium increases have reached double digits, citing increasing costs and an uncertain future. Meanwhile shareholders have enjoyed more dividend payouts. That's not to say doctors are in the same boat; their expenses have increased and medical office budget-cutting is more common.

Between 2008 and 2010, the number of insured workers with $2,000 deductibles doubled, according to the nonprofit Kaiser Foundation. Yes, new technologies cost more and there has been waste. Yet U.S. health insurance costs have outpaced inflation, GDP, and national income, and remain the highest among industrialized countries.

Here's a wild thought: What if health insurance companies were to go nonprofit?

Forget mandatory insurance, government-managed care, or other controversial proposals. Currently, insurers are for-profit businesses. Legally their boards' No. 1 priority is to "enhance shareholder value." If an insurance company were to become a nonprofit entity, it could then balance financial health with following a mission like other nonprofits, such as "optimum and efficient medical care" for members. Medical, not financial, motivations would thus reign over coverage and cost decisions.

Remove the profit element, do nothing more, and we could see meaningful change without sacrificing a black bottom line.

Sholeh Patrick is an attorney and a columnist for the Hagadone News Network. Email [email protected].