The Largest Cartel We All Unknowingly Participate In

Pssst, God Father, Justin’s At It Again!

Cartels: “an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition………………

By Justin McNaughton on Linkedin

Cartels: “an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.”

We associate the word cartel with drug cartels, which are criminal organizations with the intention of supplying drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises.

There is a greater cartel operating among us, and most of us unknowingly participate. It’s the US healthcare system, and the cartel is the insurance companies (synonymous with carriers or payers).

Provocative statement I know, but allow me to explain.

Insurance companies create networks by contracting with clinicians that are then sold to employers on a monthly basis (network access fees) for patient/employee access, and then simultaneously contract with sponsors (employers) to design health plans around the “in-network”, which further perpetuates the scheme. They do not provide prices and they make more money as prices go up, all for the shareholders. Clinicians must sign these contracts to be in the network, or they risk obsolescence and the patients and employers think this is a benefit.

We could undo this overnight with some fairly simple and practical methodologies.

 

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