Long-term insurers corrupt

April 2, 2007 —

Long-term health insurers engage in some of the most vile, repugnant and damn-near insane business practices imaginable. Last week, The New York Times printed one of the finest pieces of journalism I've read in a long time with the article "Aged, Frail and Denied Care by Their Insurers." The article used the case study of Mary Derks and Jacqueline Wheeler of Conrad, Montana to examine how long-term health care insurers are systematically screwing over helpless Americans

The author of the article, Charles Duhigg, balanced the rather emotional trials of Wheeler and Derks with a biting attack on long-term health insurers, especially Conesco. The company's stock value must have dropped 30 percent

Derks and Wheeler were subjected to absolutely inhuman treatment by the company that was supposed to make life in the infirmary bearable. There story, in a nutshell, reads like this: Derks is 82, and has been hospitalized over a dozen times for her diabetes and hypertension, she decided, with encouragement from her family, to enter Beehive Homes, an assisted-living facility. When she filed with Conesco to help pay for her care, she was denied, time after time, based on some of the most ridiculous clauses ever.

The assisted-living facility was not approved (even though it had a state license). She wasn't sufficiently infirm to enter an assisted-living home (she took 37 pills a day). Even when her doctor wrote a letter to Conesco saying "This is medically necessary!!!" This has been filled out three times! This person needs assistance!!!" she was denied treatment from Conesco, a company that is apparently run by Satan.

Her family, the Wheelers, ended up paying around $70,000 for her care at Beehive Homes over a four-year period, appealing to Conesco all the while. They ended up selling part of their tractor dealership to pay for everything.

Since its inception, Conesco has collected around 6.6 billion payments from its clients. Even if I was to assume that those payments were $1 each - fairly unlikely, I think it's safe to say - we are talking about a very, very well-off company here.

But you know, while Conesco may be a morally bankrupt institution, I think there is a bigger issue at work here that Duhigg references, but never fully explains the significance of: Medicare is dying. The cost of health care for America's rapidly aging population is becoming too much of a burden for the state, so legislators and pundits alike are encouraging people to buy health packages to cover the costs of the tremendous amount of health care required late in life.

The Association for American Physicians and Surgeons reported in 2005 that the Medicare drug benefit, meant to relieve will cost the federal government up to $724 billion dollars. For purposes of comparison, NASA will cost taxpayers around $16.3 billion in 2007.

The situation is grim. It's like being stuck between a rock and a punch to the face. How the hell does Canada do it?