Defense Base Act Compensation Blog

The Modern Day DBA Casualty

Insurers Deliberately Confuse Consumers

Posted by defensebaseactcomp on August 30, 2011

It’s about time the government took action to end these companies’ practices that — yes, I’ll have to say it again — “make it nearly impossible to understand, or even to obtain, information we need.”

“Insurers make promises they have no intention of keeping, flout regulations designed to protect consumers, and make it nearly impossible to understand — or even to obtain — information we need.”

This was deliberate, I told the committee, because the more confused and ill-informed consumers are, the more money insurers make off of them

Center for Media and Democracy’s PR Watch  by Wendell Potter

Wendell Potter Former Head of PR for Cigna

A couple of years ago, when Sen. Jay Rockefeller of West Virginia asked me to testify about little-known health insurance industry practices at a hearing of his Senate Commerce Committee, I initially was reluctant. I knew that if I was completely honest, my life would change forever.

What he was asking me to do was to disclose practices that have contributed to the growing number of Americans without insurance, the even faster growing number of us who are underinsured, and the phenomenal increase in insurance industry profits over the years, even as the ranks of those without coverage swelled.

The purpose of the hearing was to determine what Congress could do to require insurance companies to provide more pertinent and comprehensible information to their enrollees and prospective enrollees to help them understand what they were buying. What could the government do, the senators wanted to know, to help consumers figure out their benefits, compare different policies, and truly understand what would be covered and what wouldn’t, and what their total financial obligations would be, including out-of-pocket costs, in the event of sickness or injury?

I agreed to testify in hopes that, as an insider — an insurance industry executive for two decades — I might be helpful as members of Congress drafted this important part of larger legislation to reform the U.S. health care system, especially the health insurance industry. Without disclosure, it’s hard to understand what you’re paying for — and what you can count on in return.

Please read the entire article here

Two long-time advocates of greater transparency joined me on the panel: Karen Pollitz, then research professor at Georgetown University’s Health Policy Institute, who would later join Health and Human Services (HHS) Secretary Kathleen Sebelius’ consumer information and insurance oversight education team, and Nancy Metcalf, senior editor at Consumer Reports. Both of them encouraged the senators to require insurers to provide not only useful and understandable information but to do so in a standard format. Without that, they argued, consumers still would not be able to compare one health plan with another.

Insurers Deliberately Confuse Customers

I couldn’t have agreed more. In my remarks, I told the committee how insurers deliberately confuse their customers and dump the sick — all so they can satisfy their Wall Street investors.

I went on to say that insurers “make promises they have no intention of keeping, flout regulations designed to protect consumers, and make it nearly impossible to understand — or even to obtain — information we need.”

This was deliberate, I told the committee, because the more confused and ill-informed consumers are, the more money insurers make off of them

One Response to “Insurers Deliberately Confuse Consumers”

  1. Quotes from Numerous Federal Court Judges Prove Insurance Company Doctors’ ignore life threatening medical conditions including Brain lesions and Multiple Sclerosis, cardiac conditions of many patients, and a foot that a new mother broke in 5 places.

    Multiple Judges prove MetLife is also very fond of endangering Psychological claimants lives !!

    Obama and Bush’s DOL and DOJ Directors have seen this evidence but will do nothing to stop these crimes even though the patients may die before their case is heard by the Courts !!!!

    The quotes can be seen at the following website :

    http://www.deadlyorganizedcrimes.blogspot.com

    You can see how multiple insurance companies are committing identical crimes in five different types of insurance by going to :

    http://www.treasonevidence.blogspot.com

    You can see how these companies commit frauds and rig bids to increase sales by going to :

    http://www.bidriggingandhealthcarefraud.blogspot.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: