Another Health System Becomes an Insurance Company

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There is a trend in the medical world for big healthcare systems to become their own insurers and this may be a really good thing.  We need competition to bring prices down.  Here is another example:

Premier Health, part-owned by Catholic Health Initiatives, took its first step into the insurance business last year. After acquiring a state insurance license in 2013, the system in Dayton, Ohio, offered its own health plan for its 17,000-plus employees and their family members.

Though not mentioned in the article, this situation could go two ways, in my opinion.  One, it could make insurers bring their prices down.  Hooray.  Or, two, since they are pricks, it could make the insurers raises their rates because they will claim that they are left with so many high risk patients.  Boo.

I think the article is interesting and recommend you read the whole thing.  They mention that the this trend may cause tensions between hospitals and insurers and that brought a big smile to my face.  Let them go at it, I say.  Then the doctors can just sit it out and be courted by both sides. Wouldn’t that be nice?

67130cookie-checkAnother Health System Becomes an Insurance Company