Tuesday, December 15, 2009

Health Insurance vs Auto Insurance: England vs. New Zealand

English Rugby: Slow, methodical, grinding, and ultimately plays percentages.

New Zealand Rugby: Fast, creative, open, and wonderfully plays fitness levels.

Health Insurance: Slow, methodical, grinding, and ultimately plays percentages

Auto Insurance: Fast, creative, open to all, and wonderfully plays the numbers game.

[NOTE: Each insurance has very different cash flow issues. However, IMHO, if we go to a federal guarantee issue, then Health will look at lot like Auto...see below.]

Law is what governs how these insurances work, even though England and New Zealand play under the same set. Here, the difference is in Underwriting. [The process where the insurance company assesses the risk the insured poses to the financial bottom line of the company.]

I've complaining lately on how difficult MD's offices are when requesting medical records. They don't seem to understand that their inefficiency prevents people from getting insurance in a timely manner. Don't they get that the more insureds, the more customers they'll have? The insurance company wants all of a person's med records before they'll make a decision. Especially, if they see something on a person's MIB (Medical Information Bureau report) but don't have any mention of the incident on the app.

Auto insurance can issue a policy based on a quick set of info: DL number (for the driving record), the auto's make, model, year, mileage, etc. etc. The key here is the driving record.

Auto Insurance can use the driving record, and the VIN# to get all the info they need to make a decision.

Health Insurance will not go just off the MIB. They want the full records.

Change the law, and Health Insurance will change.

Why can Auto get away with this? Because their industry invested in system to provide them information, and the Law states that everyone with a car needs to buy auto insurance.

Not everyone with a body needs to buy Health Insurance?

Get it?

Again, these do not cash flow the same. However, IMHO, here's how our "federalized" public option plan will work.

You'll have a gatekeeper, like an HMO, just like the Auto Insururer sending out a claims adjuster for the car. You'll be told what they'll fix, and how much they'll pay. The insurance company will then give you a list of preferred MDs, like preferred auto body shops. Then, you decide how to spend the money.

The idea that they drive to you, check out the car, and hand you a check, is a GREAT ruse to get you off their balance sheet in two seconds. Health Insurance companies are itching for that, especially if the whole country is obliged by law to buy health insurance.

Change the law, and change insurance. Thank God that doesn't apply to Rugby.

No comments:

Post a Comment