News for October 8 — Intermediaries Raise Health Insurance Costs

Intermediaries raise health insurance costs: https://www.aol.com/profits-most-america-baffling-health-174845152.html . This of course is no surprise to those of us attempting to manage health care costs. The Economist article points out the financial effects of industry consolidation. In 2022, the combined revenue of the nine largest players was 45% of the entire industry, up from 25% in 2013. This does not translate into high quality care or even improved care. We have the worst healthcare outcomes of all developed countries, with a per capita healthcare cost double their average .

My professional view for many years has been that insurers add no value, and in fact detract value, from US health care delivery. As the article notes, these companies take between 15% and 20% of the claims they process as revenue. They are the obvious player to eliminate to reduce our costs and improve care.

I would like to see a future where the federal government delivers “basic” healthcare services to all US citizens, with insurers restricted to providing “supplemental” coverage. The universal provision of quality healthcare would improve US healthcare outcomes and mostly remove employer expenditures from basic healthcare. Costs would be covered by a payroll tax, so that employers would still pay (probably less than the current average employer cost). The savings from cutting out the intermediaries would be sufficient to cover those not currently covered.

Global warming raises fungus risk: https://www.inverse.com/health/this-dangerous-infectious-disease-could-radically-change-over-the-next-century .

WSJ: Rising business bankruptcies: https://www.wsj.com/economy/big-company-bankruptcies-hang-over-economy-2c316d74 . As usual, the Journal’s economic analysis is completely off the mark. Any CFO with a brain loaded up on long-term debt with a low interest rate. In that scenario, rising rates don’t hurt the company. It’s their operating model which is failing.

Israel declares war on Hamas: https://apnews.com/article/israel-palestinians-gaza-hamas-rockets-airstrikes-tel-aviv-ca7903976387cfc1e1011ce9ea805a71 . This has gotten ugly quickly, and will get uglier. There are already over 1000 casualties, 700 Israelis and 400 Palestinians. Civilians are a significant portion of these casualties, and that is likely to continue. The Israelis must demonstrate to their population that they will be safe in the future, and therefore they will labor to destroy Hamas. WSJ: More: https://www.wsj.com/world/middle-east/israel-strikes-hamas-and-hezbollah-sites-hunts-intruders-in-the-south-f8f40203 . Still more: https://www.wsj.com/world/middle-east/israel-war-hamas-attack-ade2a861 . These stories are exactly why Israel will focus on the annihilation of Hamas. The case for Iran’s involvement: https://www.wsj.com/world/middle-east/iran-israel-hamas-strike-planning-bbe07b25 .

Timing of the attack: https://www.nbcnews.com/news/significance-hamas-chose-attack-israel-now-rcna119351 . This is a quite reasonable hypothesis, because deeper relations between Saudi Arabia and Israel will isolate Iran in the Middle East.

WSJ: Afghan earthquake kills over 2400: https://www.wsj.com/world/asia/powerful-earthquakes-kill-more-than-2-000-in-afghanistan-this-is-a-huge-disaster-54a6f522 .

WSJ: We refuse to say the truth about Orange Julius: https://www.wsj.com/us-news/law/donald-trump-trial-new-york-fraud-ae68650 . This is just a fluff piece by the Journal. OJ may not take the criminal indictments as personally as the New York fraud case, but he will when he receives jail time. Also, the New York case points out that OJ’s self-described identity as a successful businessman is built on a big lie. He’s not as wealthy or successful as he claims. Gee, not a surprise.

Antarctic sea ice melt accelerates: https://www.aol.com/antarctic-sea-ice-melts-time-131028629.html . As this ice disappears, less of the sun’s energy is reflected back into space, further warming Earth.

University of Miami drops out of Top 10 as coach Mario Cristobal makes unbelievable mistake: https://sports.yahoo.com/yahoo-top-10-miami-tumbles-out-of-rankings-after-all-time-coaching-blunder-by-mario-cristobal-055823146.html . However, this is not a one-off mistake. Cristobal was the Oregon coach for 3 years before heading to Miami, and he made similar season-destroying mistakes here.

WSJ: World record men’s marathon: https://www.wsj.com/sports/kelvin-kiptum-marathon-world-record-eliud-kipchoge-f12622ed . Following the astonishing women’s world record time last month, this race adds considerable credence to the idea that new shoe technology is substantially lowering times for elite runners.

Michael Chiarello passes at 61: https://variety.com/2023/tv/news/michael-chiarello-dead-food-network-1235748613/ .