Reply to post: Re: Pity they were caught

IT giant CSC coughs up $2m after helping New York City bill Medicaid for child therapy rather than insurance cos

Anonymous Coward
Anonymous Coward

Re: Pity they were caught

"Wait, this is the tyranny that was paying for the treatment, despite people having insurance for it?"

Think of the US health insurance industry as a middleman that takes a very large cut out of any health transaction. For every $1m billed directly to MedicAid, claiming the same via insurance would have likely required an addition 10-20% for hospital administration, 40%-60% for insurance company fees and administration and anyone without the necessary insurance to be denied treatment. And if there are any medical supplies or medicines required, the costs spike considerably higher. I believe this case focussed on Speech and Language Therapy - private therapy costs for NYC and London are similar but the costs for those services on insurance are approximately 5-6 times higher.

Insurance companies may have missed out on additional revenue, but the rest of the US healthcare is so broken BY THE INSURANCE INDUSTRY that it needs significant reform.

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