The Los Angeles Times concludes a three-part series on the health insurance system with an article that highlights the friction between providers and insurance companies. Collecting what’s owed can get expensive, as any business owner can attest. But when insurance companies delay and/or deny payments, it can effect patient care.
The Times found that consolidation of insurance companies has “created de facto monopolies,” which makes collection even more difficult. The top 10 insurance companies covered 27 percent of insured people 20 years ago. Today, four companies, including Aetna and Cigna, cover over 85 million people. This gives insurance companies leverage when deciding what to pay and what to deny and providers little power to negotiate. Consequently, doctors turn away patients and/or opt out of insurance networks. Patients end up caught up in the billing wars.
Given the rising cost of health care, development of new medical technology, and advancements in treatments, the problem likely will get worse before it improves.
