Chee says the doctors and hospitals should not blame the insurance companies for their problems. He points to three factors raising costs for health care providers. Medicare reimbursement was cut dramatically and has yet to be fully restored. That cut into doctors' incomes and hospital incomes in a major way across the board and across the country. There are new medical procedures and new imaging technologies, and to remain competitive, doctors and hospitals have to offer the latest and greatest medical services.
Pharmaceuticals are the single fastest growing cost area in health care.
It's a fact of life that as we get older we use more health care. The sheer volume of people receiving medical care is on the increase and will continue to increase. It's a huge burden on the system. Chee said Blue Cross is caught in the middle. The insurance companies must negotiate favorable deals with the hospitals and with employers and individuals buying coverage.