Monday, July 14, 2008

In thinking about medical care for my debate, I have been thinking about the shenanigans of the insurance companies.

The Marginal Revolution blog points to an insurance policy to cover businesses whose insurance providers refuse to pay. How long will it be before people with people will need to buy comparable policies for their medical care.

"New Product Covers Legal Costs If Buyers Decide to Challenge Claim Denial." Sclafane, Susanne. 2008. National Underwriters Property and Casualty.
The risk that a claim won’t be paid -- a potential downside that every buyer of insurance faces -- was an uninsured exposure until recently, according to the developers of a new policy to provide coverage so that risk managers can contest such rejections.

The new coverage, available to businesses of all sizes, will pay up to $250,000 in legal expenses associated with contesting the denial of an insurance claim under a commercial policy.

We know that wrongful coverage denials occur in our industry. There’s a reason coverage attorneys exist today,” Mr. White [Jason White, a managing director for Professional Services Group of Swett & Crawford, in the Los Angeles office of the Atlanta-based wholesale brokerage] said, explaining the impetus for the product launch. In fact, he noted, the idea came from a coverage law firm—Surdyk & Baker in Chicago.

2 comments:

Sandwichman said...

So what then if your insurance refusal insurance provider refuses to pay? Infinite regress, anyone?

Jack said...

The need for a reinsurance system to back up the first insurance system is in and of itself evidence of the need for a single payer, nonprofit,ie govt administered, health financing system. And no, that's not socialized medicine. It's private health care providers being paid through a not for profit health care insurance system. The 30% that we currenlty allow the health insurance industry to skim off the top could be reduced substantially by a Medicare model of helath care financing.