“The best kept secret about managed care was that the so-called health care costs “saved” by the self-styled care managers ended up being shared with insurance administrators and their self-insured employer/clients – the sponsors and fiduciaries of their own employee’s benefit plans.”
“As we noted earlier, Preferred Healthcare’s president, Robert K Lifton, was quoted in Barrons: “the company actually has been able to save customers at least 30% of their health care costs and it splits those savings with the employers.”
“To this day, despite toady assurances to the contrary, the managed-care process has done nothing to lessen medical costs for the patient or improve the quality of healthcare delivery for the country.”
-The Managed Healthcare Industry – A Market Failure by Jack Charles Schoenholtz, MD- , page 409
TRANSLATION: Managed Care, i.e, PPO networks, do not save money. It is a complicated scheme designed to enrich third party intermediaries, funded by ignorant consumers who have no idea of the fraud brought upon them.
We should all thank our medical providers for sharing part of our “savings” with third party intermediaries – nothing like spreading the wealth – “Hey doc, thanks for seeing me! My insurance will be crediting your account $400 for that service you charge $1,000 for. Part of the $600 savings, of course, will be coming out of your $400 to pay various parties to the scheme to defraud me and you. So your net payment, on your normal $1,000 charge will be around $200.”