Posts Tagged ‘PRESIDENT REAGAN’

Insurance Companies are as Efficient as Federal Agencies

July 14, 2017

Insurance Companies own Politicians in DC and your state Legislature!

In addition to TV commercials and political contributions, they can’t count beans unless they have Palatial Offices in Marble Skyscrapers.  The first building to be called the tallest building in the world was an Insurance Company Building shown above.  Then, the third building to earn that title was another Insurance Company Building.

The Metropolitan Life Insurance Company Building in New York City became the fifth building to become the world’s tallest.  It is shown above and had 50 floors.  I visited that building in 1961 during my high school senior trip.  It was amazing watching banks of computers with spools of magnetic tape spinning around.

The MetLife Computer was probably a Univac with the capabilities of my smartphone but with a starting price of $7 million.

When I had Blue Cross I received piles of totally unnecessary mail from them. My cost for Blue Cross Healthcare Insurance was almost nothing when I first worked for the Federal Government in 1978. By the time I retired in 1996, Blue Cross was bloated and inefficient like ANY Agency in Federal or State Government.

This is a Blue Cross Building that was the Pennsylvania State Headquarters.  It only had 45 floors but every state has something similar.  I don’t know if this is still in use or if they needed a taller skyscraper?

The way Insurance Companies have a low Profit Margin is by lavish spending, exorbitant salaries and wasting money. Why have a meeting in the office when you can have a meeting on the French Riviera?

Insurance company bean counters make more than surgeons and state CEOs make millions.

If Walmart efficiency and management was present in the Insurance Industry, the Healthcare Crisis would be solved almost overnight!

In my 2007 book, TOP GUN MANAGEMENT, I wrote about waste and inefficiency. I remember when the Massachusetts Blue Cross CEO got a huge multi million dollar raise after losing a large percentage of customers.

Government Agencies and Insurance Companies have no incentive to be cost efficient. The Government simply raises taxes and Insurance Companies simply raises rates when funds are needed.  Are you able to do that in your household?

My last year with the Government I had a six figure surplus in civilian pay. I could have hired temporary or permanent employees or converted the surplus to another budget category.

I had a surplus because I didn’t hire employees I didn’t need or buy wall paintings and a Louis XIV desk for my office.

I turned the excess funds back to the Government. Do you think they went to pay down the National Debt or to fix broken combat aircraft?

They went to a typical Government Director who easily blew the funds.

Who do you think the Government had more respect for, the Director who blew the money or me?  You guessed it!

The famous government leaders you see on TV all the time, for the most part, never met a payroll or worried about paying bills.  They are either bureaucrats or politicians.  Most could not run a lemonade stand.  Couple the inefficiencies in both the insurance industry and the government with fraud, waste and abuse and you have the recipe for disaster.  Not a disaster for the government or the insurance company but a disaster for the taxpayers and subscribers.

Who polices the government and the insurance industry?  Usually the fox guards the hen house.  The government has a completely fraudulent watchdog system called the Inspector General System.  The IG’s almost never substantiate wrong doing but they come down hard on whistleblowers.  The IG works for the agency or military commander, they are not independent.  They are very careful not to embarrass their boss.

States have Insurance Commissioners who are no match for clever insurance executives.  Especially since too many sorry politicians get elected on the backs of insurance lobbyists who scratch their backs.

I think most of the people reading this fully understand why President Trump calls it the Swamp.  President Reagan said government is not the solution to the problem, government is the problem.  The same could be said for the insurance industry as it now functions.

If your Politician will get behind President Donald Trump, America has a chance.  It is unlikely that your politician will kill the insurance company that lays the golden egg.

If your Politician sticks with the Insurance and Hospital Lobbies, we are toast.