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  • Thanksgiving Special from MediBid for Physicians & Patients November 26, 2014
    Happy Thanksgiving from MediBid! MediBid is offering 25% off annual registration to give thanks to all of the freedom fighting doctors and facility administrators we have out there! We have a large group of self pay patients looking for quality …
  • Fraser Institute: Waiting Your Turn, Medical Wait Times in Canada 2014 November 26, 2014
    The Fraser Institute study, Waiting Your Turn: Wait Times for Health Care in Canada, is Canada’s only comprehensive measurement of wait times for medically necessary health care. Based on an annual survey of physicians practising in 12 specialties in each …
  • Why You Should Eat More Prunes November 24, 2014
    Many people are not fans of prunes, yet sales of “dried plums” are on the rise. Prunes have been a popular digestive remedy for decades with their fiber, stool loosener, and natural laxative compound. They are a sweet treat for …
  • ACA Architect Gruber Insults Voters November 21, 2014
    MIT economist Jonathan Gruber (an architect of Obamacare) has emerged in a handful of videos insulting the American public. In one video, Gruber discusses how voters’ “lack of economic understanding” enabled a politically unpopular tax on “Cadillac” health plans to …
  • Are You Vitamin D Deficient? November 19, 2014
    Many Americans believe they are not at risk for Vitamin D deficiency because they eat D-fortified foods. These foods do not contain enough Vitamin D to benefit your health. Vitamin D is not a regular vitamin, but a steroid hormone …
  • Ambulance Drones Could Help You Survive a Heart Attack November 17, 2014
    Heart disease is the #1 cause of death in the United States. The odds of surviving a heart attack outside of a hospital is only 8%. Four out of five heart attacks occur at home where there is no emergency …
  • Eugenics in America – In the Name of Science November 17, 2014
    Marilyn M. Singleton, M.D., J.D. presents at the AAPS 71st Annual Meeting, September 5, 2014, Charleston, South Carolina
  • Supreme Court to Examine Issue of Obamacare Subsidies November 14, 2014
    The Supreme Court will decide the fate of Obamacare yet again. This new case challenges the key issue of subsidies used to assist in purchasing insurance in the exchanges. This decision to hear the King v. Burwell case has surprised …
  • Apples to Protect Against Obesity November 12, 2014
    An apple a day may be as beneficial as daily statin use. Apples and pears reduce the risk of stroke by more than 50%. A new study has found that the bioactive compounds in apples not absorbed during digestion boost …
  • Diabetes Awareness: Testing & Treatment is Important November 10, 2014
    Diabetes mellitus, known commonly as diabetes, is a metabolic disease where a person has high blood glucose (sugar) because they do not produce enough insulin or the body’s cells do not respond properly to insulin. Glucose cannot enter our cells …
  • Tau Protein Causes Alzheimer’s, Not Plaque November 7, 2014
    A new study has discovered that the protein tau (the “tangles”) is the main cause of Alzheimer’s disease, not plaque as was previously believed. Tau determines how much amyloid protein stays in the cell and how much is secreted outside …
  • Direct Primary Care Reduces Healthcare Costs November 5, 2014
    Direct primary care benefits both the patient and the physician. Many people could afford medication if they could afford the office visit it stems from.  Clinics that take insurance have to hire extra people and invest in special technology in …
  • The Problem and Solution for Our Healthcare System November 3, 2014
    by Timothy D. Wingo, MD; Owner – Atlas Healthcare, PA It is obvious to everyone that the healthcare system in our country is broken and getting worse. What is not so obvious is what it would take to fix it. …
  • 3 Steps to Get Rid of Heartburn and GERD Forever October 31, 2014
    Heartburn and GERD are caused by too little stomach acid and bacterial overgrowth in the stomach and intestines. There are three steps to treat heartburn and GERD without drugs and keep them from returning. Reduce factors that promote bacterial overgrowth …
  • OMTEC 2014 – Keynote Interview with Industry Leaders (Installment 5 of 5) October 31, 2014
    Original, essential content from OMTEC. Industry leaders Michael Butler, Dirk Kuyper and Mike Matson discuss the intricacies of supplier relationships within the orthopaedic industry.
  • OMTEC 2014 – Keynote Interview with Industry Leaders (Installment 4 of 5) October 31, 2014
    Original, essential content from OMTEC. Industry leaders Michael Butler, Dirk Kuyper and Mike Matson discuss the intricacies of supplier relationships within the orthopaedic industry.
  • OMTEC 2014 – Keynote Interview with Industry Leaders (Installment 3 of 5) October 31, 2014
    Original, essential content from OMTEC. Industry leaders Michael Butler, Dirk Kuyper and Mike Matson discuss the intricacies of supplier relationships within the orthopaedic industry.
  • The Wasting of Taxpayer Money October 29, 2014
    by G. Keith Smith, MD If you are looking for proof of the fact that the wonderful folks in D.C. are more interested in lining the pockets of their pals than demonstrating good stewardship of the loot from the robbery …
  • Giving Birth in America is Most Expensive in the World October 27, 2014
    While a woman is preparing for giving birth, one worry she doesn’t want to have is about the cost of delivery. Insured women are finding that some policies do not cover maternity care, services that most often do not have …
  • Physicians are Not Medicine’s Top Earners October 24, 2014
    Physicians are the most highly trained members of the medical industry’s force, yet have median compensation.  The largest salaries go to the Medicrats who oversee the business of medicine. Insurance CEOs average $584,000 compared to surgeons ($306,000) or a general …

Market Based Patient Care

by Ralph Weber

Health plans are expensive because medical care is expensive. Will shopping across state lines for insurance fix that? It’s a nice sound bite, and will allow the insured to drop some of their own state mandates, but the biggest input to the cost of a health plan, is the underlying cost of the medical care financed by this plan. If you buy a plan in Shreveport, and use it in San Francisco, it will trend up in costs.

During the year-long healthcare debate, I did not hear ONE person ask why medical care is so expensive. They barely even asked why health insurance was expensive, but if 85% of the premium for health insurance must be paid out in medical costs with the new medical loss requirement, and we have not addressed the cost of medical care, then insurance premiums will CONTINUE to rise at an unsustainable rate. Enacting health insurance reform without addressing the cost of medical care, is like putting a new roof on a building which was in an earthquake.

Here’s how the Feds put the fix on health care pricing.

It all starts with a Federal agency called the Center for Medicare Services (CMS).  They set the reimbursement rates for some 14,193 medical procedures.  How they come up with these figures is based on a “secret formula” calculated like most government methods of accounting. Then CMS pays the AMA (American Medical Association) to produce and manage “secret codes” called Current Procedural Terminology codes (CPT codes).  The AMA then sells these codes to all doctors and hospitals, and insurance billing clerks.  Altogether, they receive annual income reported to be $69.9 million, to manage these codes. Insurance companies then use the reimbursement rates as a starting point in determining how much should be covered as an insurable benefit under the term, you no doubt recognize: “co-insurance”.

In any business model where prices are fixed and paid by a third party, the patient (consumer) and doctor (provider) both have an incentive to consume more services than may be needed in order to gain maximum benefit. This is why these programs have become entitlements, rather than indemnity programs. If patients travel to Kansas for a bunionectomy or to New Jersey for a knee replacement, or Oklahoma for a Coronary Artery Bypass Graft, and you allow doctors and hospitals to compete across state lines, with their own rates, THEN you will achieve fair market rates, and sustainable costs.

Each doctor and hospital has different costs for different procedures, and each medical provider includes different services with any given procedure. When a third party arbitrarily decides to pay Dr. X in Los Angeles the same as they pay Dr. Y in Miami, some doctors will be overpaid for certain procedures, and underpaid for others. Patients will receive “cost effective” procedures, which may not be what they really need. How many times have you turned on the TV and heard a vendor offer, “If you have Medicare, we’ll get it paid for, or you get your scooter free.”? Would you get one if you had to pay $25,000 of your own money? Take your car to a body shop and get an estimate to fix a dent. Then say: “oh, I forgot to mention, I have insurance”. The price will suddenly go up. This is because both the consumer and the provider are spending other people’s money.

So how can we address the costs of medical care? By allowing doctors and hospitals to compete across state lines, not just insurance companies, and by having the patient see the true cost of the care, and direct their own care. A key element completely missed in healthcare reform.

In recent years, an industry known as “Medical Tourism” has emerged, and is projected to grow at an estimated 35% per year. Medical tourism brokers send people overseas with “promised” savings which compare “billed rates” in the US to “paid rates” overseas. There often exists an added incentive for these brokers to send you overseas in the 20% to 80% or more that they get in kickbacks from the facility they send you to. These kinds of kickbacks are illegal in the US, so these brokers usually won’t refer you to a US facility. Deloitte estimates that by the year 2017 as much as $599.5 billion per year of medical care revenues could be lost from the US, in favor of overseas facilities.  There is a very important place for overseas medical facilities in caring for US patients, but they are often not competitive on price. When US doctors and hospitals are permitted to set their own rates, they can usually compete very favorably with overseas facilities. A service such as MediBid.com allows patients to shop domestically as well as internationally, and define their own criteria for medical care.

The status quo, and the reformed healthcare model lack transparency, as well as financial incentives for both provider, and consumer to reduce costs. In order to reduce costs while encouraging technological improvements, we need to introduce competition among doctors and hospitals.

Ralph F. Weber, President of MediBid, was born in Vancouver, Canada, and grew up in Thailand, Nepal, and Germany. After starting an international health insurance brokerage in Canada, Ralph’s wife was injured by a 2 ½ year wait for surgery, and his son sustained a head injury which was not treated because of the lack of a CT machine at the hospital in Canada. In 2005, Ralph moved to California to obtain surgery for his wife, and expanded his brokerage there. In 2006, Ralph participated in a healthcare forum with presidential hopeful, Rudy Giuliani. Ralph later contributed healthcare reform policy to Mayor Giuliani, and state assemblyman, Mike Villines. Driven by a passion for greater access, transparency, and value in healthcare, Ralph and a group of private investors started MediBid. MediBid does what politicians have failed to do to healthcare for decades: To control costs, expand access, and offer quality choice and value to patients through a free market system. MediBid allows patients to shop for medical for medical care in a free market system.

 

Self Funded



At MediBid, we restore market forces to medical care. Doctors get to set their own rates based on their training, experience, and outcomes, and patients get to shop for medical care across state lines and international borders. Many times with MediBid, you will find procedures that are more effective than procedures allowed, or covered by health plans. Transparency and competition are the only way to achieve reasonable costs. Many of our employer clients offering group health insurance through MediBid save $5,000 per employee per year. Those are substantial savings. Patients are saving an average of 48% vs. insurance discounted rates, or 80% vs. retail. Contact us for more information.
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