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                        Mt. Holz Science Fiction Society
                    Club Notice - 12/03/99 -- Vol. 18, No. 23

       Chair/Librarian: Mark Leeper, 732-817-5619, mleeper@lucent.com
       Factotum: Evelyn Leeper, 732-332-6218, eleeper@lucent.com
       Distinguished Heinlein Apologist: Rob Mitchell, robmitchell@lucent.com
       HO Chair Emeritus: John Jetzt, jetzt@lucent.com
       HO Librarian Emeritus: Nick Sauer, njs@lucent.com
       Back issues at http://www.geocities.com/Athens/4824
       All material copyright by author unless otherwise noted.

       The Science Fiction Association of Bergen County meets on the
       second Saturday of every month in Upper Saddle River; call
       201-447-3652 for details.  The Denver Area Science Fiction
       Association meets 7:30 PM on the third Saturday of every month at
       Southwest State Bank, 1380 S. Federal Blvd.

       ===================================================================

       1. Last week I  said  why  I  think  that  the  Health  Maintenance
       Organizations (or HMOs) were not just facing conflicts of interest,
       they really were in the conflict of interest business.  Essentially
       they  are able to turn a profit by the denying what is the best but
       also the most expensive health care.

       I  suppose  originally  HMOs  saw  the  huge  increase  in  medical
       spending,  paid  for  in large part by corporate benefits packages,
       and they  said  they  could  help  corporations  manage  the  cost.
       Perhaps  at  one  point  it  seemed like a good idea.  But the HMOs
       threw themselves right in the middle of a situation where life  and
       death decisions were being made and said that they could be trusted
       to make those decisions.  For a money-making corporation to go into
       the life and death decision business sounds on the face of it to be
       foolhardy.  And it really is.  And it is particularly true in  this
       litigious  society.   They  would  have  to  have a private army of
       lawyers  to  fight  off  the  litigation  and  the  inevitable  bad
       publicity  that  they would be getting.  Doctors make the same sort
       of decisions, but it is easier to trust a  single  person.   It  is
       difficult  to  trust the anonymity of a corporation and to know the
       corporation innately has to please its stockholders and to  make  a
       profit  by saving on healthcare costs.  The astronauts used to joke
       about how insecure they felt sitting on top of  a  rocket  made  of
       some  huge  number  of  parts,  each provided by the lowest bidder.
       Anyone who gets his healthcare from an HMO knows how the  astronaut
       felt.

       The  HMOs  currently  have  immunity  from  patient  and   survivor
       lawsuits.   Perhaps  they  should  since juries are tending to give
       large awards when individuals sue large corporations.  Juries  also
       know  the  lawyers  will  take a large cut of the proceeds and they
       want some to be left over for the injured parties.  Right  now  the
       laws  mostly  stand  in the way of individuals suing their HMOs and
       the  HMOs  are  generally  protected  by  a  somewhat   sympathetic
       Congress.   That  cannot last.  When the public starts to see their
       elected  officials  siding  with  the  corporations  against  them,
       suddenly Congress will have a change of heart and suddenly being in
       the  healthcare  control  business  will  become  very  much   less
       profitable.

       In the end I think people will realize that the  HMOs  are  not  an
       effective  tool  against higher medical costs.  Sooner or later for
       the HMOs to avoid being  stung  to  death  by  lawsuits  they  will
       probably  be  forced  to  make  much the same set of decisions that
       personal doctors would have made and perhaps they will have  to  be
       even  more  liberal  than  private  doctors would have been.  Every
       decision they make that is more conservative than a private  doctor
       would  have  made  opens  them up to the possibility of litigation.
       The cost of medicine will return to what it would have been without
       the  HMOs PLUS the cost of more liberality to cover themselves PLUS
       the cost of the operating expenses of the  HMO.   The  corporations
       will  see  that  going  with  the HMOs was short-sighted.  It was a
       short-term savings that will cost more in the long run.  When  that
       happens  the  same  corporations that flocked to HMOs to save money
       will probably decide that health  care  is  just  too  expensive  a
       benefit.   They  will  stop  offering it altogether and perhaps the
       better companies will sweeten salaries a  little,  but  not  nearly
       enough  to  cover  health  care  costs.  Then we will find a lot of
       people just not able to get health care.  Rather than  forestalling
       that day the HMOs have hastened it.  [-mrl]

                                          Mark Leeper
                                          HO 1K-644 732-817-5619
                                          mleeper@lucent.com

            The average dog is a nicer person than the average 	    person.
                                          -- Andrew A. Rooney