Where is the fraud occurring?
Reader comment on: Obama's Health Care Summit and Undercover Patients
Submitted by benjamin Geballe (United States), Feb 25, 2010 15:06
It is my understanding the bulk of the fraud occurs when doctors overcharge for services. This could equally be true for private insurance companies as for the government. It was stated that private insurance has a much lower rate of fraud than the government, but even if that is true, the insurance companies have a much higher overhead cost, some of which we can assume goes towards rooting out fraud and abuse. I think you are advocating getting rid of third parties (insurance companies and the government) and buying insurance on your own. When you write that "they are spending other people's money," this holds true for the government and insurance companies. Sure, some people have co-pays that go with services, but I would imagine the scale of fraud on co-pays is a drop in the bucket compared with charging insurance companies or the government for expensive procedures.
By your logic, insurance will always have fraud and therefor we should not have insurance. What would our health care system look like if we did not use insurance? Each person on his/her own? Luck of the draw? You get sick, you die? You don't get sick, you keep your money? I don't think that is a society I would want to live in, even if I were one of the lucky ones.
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The Future of Capitalism replies:
Give people vouchers or tax credits to spend on health care. Let them spend it how they want. Maybe let them keep some of what they don't use. Once you get above a certain amount full govt. coverage kicks in. If you lie about that, it's tax fraud. No undercover patients necessary.
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