COMMERCIAL INSURERS DOUBLE DOWN ON HOSPITAL ATTACKS
The following information was released by the
President and CEO,
It'sbeen a little more than fourmonths sincecommercial insurance company executives weresummoned to
The response from
Thesewebsites, the ads they are paying for, and the messages they are delivering are filled with half-truths at best.But to a public frustrated with a growing national affordability crisis, andtopoliticians who want to be responsive to theirconstituents'needs, truthdoesn'tseem tomatter as much as action.
Whileit'sregrettable thatthese commercial insurance companiesare choosing todouble downand spend bigtodeflectattention fromtheir profits and responsibilities, hospitals are fighting back.
At the state level, CHA is supporting several bills to hold commercial insurers accountable. Senate Bill (SB) 1037 (
This all makes fora critical moment in health care. If the response tothe public'sdesire for more affordable health care is based on lies or half-truths disseminated by a commercial insurance industry that rakes in tens of billions of dollars in profits every year, then it will be communities and patients that suffer as health care providers get squeezed.
Politicians should not be fooled by theseslick,well-funded campaigns.
Here'sthe truth.When it comes to hospitals, theyareindeedthe most expensivehealthcare setting. And with good reason: They are open 24 hours a day,365 daysa year;theycare fora growing number ofpeople with the most complex illnesses and injuries(car crashes, heart attacks, strokes, cancer, and so much more); they provide strong, high-payingjobs (even when adjusted for cost of living, Californianurses are the highest paid in the country
In fact, hospitals have little-to-no control over their expenses, with prices for 53% of their costs dictated by the local labor market, and with entities outside the hospital directly controlling the price for the remaining 47%. Hospital spending is composed of:
53% Labor costs
15% Supplies (pharmaceuticals, medical equipment, gowns, gloves, bandages)
19% Purchased services (electronic health records, food, laundry services, and building repairs)
13% Other expenses (leases, financing costs,insurance costs, etc.)
Still,hospitals are doing their part to keep costs in check. Adjusting for
Few dispute that the nation's health care system needs toevolveso itworksbetter forpatients and families, and hospitals stand ready to do their part.It'sjust too bad that commercial insurance companies would ratherplay a tired blame game than cooperate on actual solutions.


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