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?

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected]