CEOs Get Paid While Patients Suffer: Our Current System is Broken
By John Batson, RN
According to local reports, five CEOs of local hospitals in Western New York earn salaries collectively totaling over $6 million in compensation and benefits annually. Five executives of local health insurance companies in Western New York earn similar compensation packages totaling more than $5 million annually. Executives who lead some of the largest healthcare and health insurance organizations are amassing great personal wealth while everyday New Yorkers are facing life and death medical decisions.
If they have so much to pay themselves why are costs for patients only increasing? Hospital executives state some of the most significant factors increasing the cost of healthcare is low insurance reimbursement, chronic disease prevalence and rising drug costs. Insurance companies also claim rising drug cost are due to inflation and regulatory factors. All the while our local, state, and federal government officials encourage us to trust our current healthcare system. When these power brokers take their seats at the table to discuss healthcare cost, access, and services the most important partner is missing from the conversation: The patient. They should be the focus of our collective efforts.
The current system is broken. The best solution is a single payer health insurance model. While health industry leaders point fingers at opposing sides, people are needlessly burdened, suffering and unfortunately dying as a result. They are more interested in protecting profits than people. Unfortunately, the public will need to brace for more troubling times. Patients are navigating more frequent insurance denials because health insurance corporations have now leveraged artificial intelligence algorithms to review claims. According to published reports some of the AI software can review as many as 50 claims in 10 seconds. These denials aren’t reserved for the most expensive procedures. Unsurprisingly, some insurers have denied up to 49% of claims for even the most basic health needs such as maintenance medications and testing procedures.
Several months ago, my 7-year-old daughter was exhibiting respiratory cold symptoms. Like any other parent I kept her home from school and called her pediatrician. It was recommended she come in for an assessment since strep throat was prevalent in our area. Thankfully, her result was negative, and she recovered quickly. A few weeks later I received $75 bill for uncovered laboratory services. The notice stated her strep culture didn’t receive prior authorization. I was livid and couldn’t understand why my claim was denied. I immediately submitted an appeal which was approved after 2-3 weeks of waiting. I can only empathize for the people who are denied for expensive or life-threatening medical needs. A single payer health insurance model is the best option to provide comprehensive healthcare. The current methods of healthcare delivery simply doesn’t put the patient first.
The article first appeared in NYSNA's Single Payer Healthcare Committee newsletter.