To: John Kitzhaber, Oregon Governor
Gov. Kitzhaber: Get health insurers to cut the waste
OSPIRG
Before health insurers are allowed to hike premiums, they should be required to:
- Demonstrate a clear plan to cut waste, boost prevention, and pass those savings back to consumers.
- Show the math behind the proposal to raise rates.
- Notify customers when a rate hike is proposed, and outline how customers can participate in Oregon's rate review process.
Please create and enforce rules to make these reforms a reality.
Why is this important?
When I read a recent news story about how one hospital charged $1000 for one toothbrush, I admit to being skeptical. But then my friend’s wife accidentally cut her finger and was charged $1000 for one tube of skin adhesive -- medicine you can buy online for $40.
Turns out, overinflated medical prices wasted an estimated $105 billion in America in 2009. And that’s the tip of the iceberg. Excessive administrative costs and paperwork wasted $190 billion. Duplicate treatments and medical errors wasted $130 billion. Overall, roughly one-third of all health care spending is waste. (source: Institute of Medicine)
Insurance companies should focus on cutting this waste, but too many of them just raise premiums and expect consumers to foot the bill.
That's why we're calling on Governor Kitzhaber to require insurers to do more to cut this waste, before they are allowed to raise premiums.