The Banality of Profit-Based Health Insurance

With apologies to Hannah Arendt. From an interview by Bill Moyers of Wendell Potter, a former healthcare executive:

...that was my problem. I had been in the industry and I'd risen up in the ranks. And I had a great job. And I had a terrific office in a high-rise building in Philadelphia. I was insulated. I didn't really see what was going on. I saw the data. I knew that 47 million people were uninsured, but I didn't put faces with that number.

...certainly, I knew people, and I talked to people who were uninsured. But when you're in the executive offices, when you're getting prepared for a call with an analyst, in the financial medium, what you think about are the numbers. You don't think about individual people. You think about the numbers, and whether or not you're going to meet Wall Street's expectations. That's what you think about, at that level. And it helps to think that way. That's why you-- that enables you to stay there, if you don't really think that you're talking about and dealing with real human beings.

Related to this (well, sorta), a lot of the financial crisis can be laid at the feet of people who took jobs that enabled them to behave like sociopaths. Until we reduce the incentives to take such jobs (and high marginal tax rates that force people to think long-term as opposed to makingextracting a quick bundle and getting out would be a good start), we're not going to solve many of our current problems--even though, to return to healthcare, most of us know what has to be done.

More like this

A lot of the media coverage of the healthcare debate lately has focused on the politics, probably because journalists feel like they've already spent several months explaining the various aspects of proposed reform. But there are a few things that bear repeating, because not everyone seems to…
We had a talk yesterday at lunchtime from an alumnus who graduated with a physics degree, got a Ph.D. in Physics, did a couple of post-docs, and then decided to give academia a miss, and went to Wall Street where he's been a financial analyst for the last 12 years. He talked, mostly for the benefit…
I've spent part of this morning doing some fairly serious research on health insurance in the United States, and who doesn't have it. My curiosity on the subject was stirred up by a couple of things: after looking at a lot of DonorsChoose proposals from schools with high poverty rates, poverty is…
To his credit, economist Brad DeLong "who stands here repentant" lists "five things that I thought I knew three or four years ago that turned out not to be true." I would like to visit each of them, since I think highlights economics' need for 'economic natural history' and sociology. Over to…

Related:
http://www.grist.org/article/2009-07-17-mrsa-gets-worser-fda-get-seriou…

Another industry, with much of it concentrated in a few hands, in which 'efficiency' has known increasing costs, antibiotic resistance.

It's not profit that's the problem, it's _concentrated_ profit _removed_from_ the practice.

Maybe the rule of thumb is, if the largest investors in a business don't suffer whatever damage results from its business practices, it's too big.

By Hank Roberts (not verified) on 19 Jul 2009 #permalink