This Health Insurer Denies MORE Claims Than Any Other Insurer by FAR! Must be bad, Right??

There is a health insurance entity that denies claims at nearly twice the average rate of all other insurers...It is called Medicare.

"According to the American Medical Association’s National Health Insurer Report Card for 2008, the government’s health plan, Medicare, denied medical claims at nearly double the average for private insurers: Medicare denied 6.85% of claims. The highest private insurance denier was Aetna @ 6.8%, followed by Anthem Blue Cross @ 3.44, with an average denial rate of medical claims by private insurers of 3.88%"

There has been some improvement by Medicare, but it still trails behind the private providers denial rate...

"In its 2009 National Health Insurer Report Card, the AMA reports that Medicare denied only 4% of claims—a big improvement, but outpaced better still by the private insurers. The prior year’s high private denier, Aetna, reduced denials to 1.81%—an astounding 75% improvement—with similar declines by all other private insurers, to average only 2.79%.:

My question is simple, why can't politicians fix what they are already responsible for before tackling a whole industry? If they could reform just ONE major social program (Medicare?) and get some credibility then perhaps they could get the trust of the American people to press for more reforms. Too much to ask for?

Cap and Trade---Easy illustration of how it works....

Here is a very short, simple explanation of the "Cap and Trade" solution to carbon emissions. If you are taking Microeconomics this is something we will look at in detail. Cap and Trade seeks to put a numerical quantity of allowable carbon emissions by industry. It is different from the other solution to reducing carbon emmissions, which is a direct tax on the consumption of carbon based fuel (i.e. tax on gasoline). This type of tax is also called a "Pigovian Tax". BOTH solutions will raise the cost of fossil fuel based energy for people/businesses. One (Cap and Trade)is more subtle than the other (Pigovian Tax).
  Bottom line: Cap and Trade identifies a QUANTITY of allowable carbon emissions and the Pigovian Tax puts a PRICE on carbon emissions...

Cap and trade

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How Did Your Favorite Movie Do At The Box Office???

A list of the Highest Grossing movies of all time in 2009 dollars (adjusting for inflation over time). I find the estimated production costs (in 2009 dollars also) very interesting as well....

How Long Would You Work For A Big Mac???

In minutes, how long does it take to buy a Big Mac in different parts of the world.  This is a different take on the "Big Mac Index" we learn about in AP Macroeconomics.  It is measure of productivity and the purchasing power of your earnings. The Big Mac is used because it is relatively uniform in its finished form across the world, with some modifications for local tastes...

Bottled Water vs. Tap Water??? Read this before you make up your mind...

The use of bottled water vs tap water has been a topic of discussion, formally and informally, in school lately.  This article in the the NYTIMES  "That Tap Water Is Legal but May Be Unhealthy" may give us a reason to pause (not to raise any alarm as to the safety of our water here).  This article is instructive in that it shines light on the ability, or inability, of a Federal bureaucratic agency to adapt to changing situations as it relates to Federal legislation.  In this case, it is the EPA applying a law passed 35 years ago (The Safe Drinking Water Act of 1974) to current conditions.  Many chemicals that did not exist when the law was passed are now found in drinking water in different parts of the country.  The inertia of the bureaucracy and industry pressure seem to prohibit the inclusion of many of these contaminants.  The article is informative AND gives a perspective on the efficacy of federal enforcement/regulation in an important part of our everyday life.

Unemployment by various demographic characteristics...

Informative interactive graphic  in the NYTIMES on how various groups organized by different demographics are doing in terms of unemployment. Lots of ways to view the data...

Christmas is Economically Inefficient...

Have you ever recieved a gift for Christmas that you would have never bought for yourself, even if you had the money and inclination to do so?  If I buy you something for $100 and it is something that you would have never paid more than $50, is this an efficient outcome for you AND society?   The only way it would be so is if the gift value, or sentimental value ,you received from the gift-giver is equal to the $50 you would be willing to pay for that gift PLUS $50 in sentiment you recieve from recieving the gift. You have to factor out the value lost to society if you do not use the gift to its maximum value.  If you dont use it, or under-utilize it, then there is a loss to society in terms of the multitude of resources used to produce the gift.  We have a mis-match in what the giver pays for a gift (the cost in societal resources) and how much the recipient values the gift (societal cost in resources PLUS sentiment).  Do I really do you a favor, or show you sentiment, if I buy you a gift that you dont value and will not use? Have I really done society a disservice by spending money and sending a market signal that the particular gift is useful and/or desirable?  Give this a thought on Christmas morining as you are opening your gifts...Hope I did not ruin the holiday for you, but this is what knowledge of economics will do to you...:)

Can you hear me NOW???

In a recent post I suggested that Congress reached a new low by injecting itself into BCS Bowl bruhaha.  Seems like they have better things to do, however they have exceeded my low expectations by tackling the apparently serious problem of TO LOUD T.V. COMMERCIALS! I did not realize this was a problem that Congress needed to address with Federal legislation.  Some Congressional representatives have nothing else to do on the taxpayers dime...

The "Stuff" Revolution Started in 1985!

Here are two graphs that support my "rant" on stuff (similar to George Carlin's(language warning!!) and emprically confirms my thoughts about the decade of your birth (late 1980's/1990's) as a period in history that will be studied for its economic advancement.  They show that 1985 is a seminal year.  In that time the size of houses AND garages started to grow rapidly.  I am not sure what came first, however, the increase in the size of houses or the explosion of the production of "stuff" to put in them.  Regardless, it is evidence that life changed in the US in 1985.  Now I need to find a graph of the construction of min-storage facilities to go with these and I will have visual evidence to go with my lecture on why we are dependent on the production of "stuff" in the global economy...

The Sun rises in the East, the Sky is Blue and....

Congress is going to raise the statutory national debt limit by 1.8 Trillion dollars to a new limit of approx. 14 Trillion dollars...This is roughly the current National debt (red numbers below).  As I suggested in class, it will be embedded in a Pentagon funding bill that few will vote against.  Republicans will fuss about it and grandstand, but they know it will pass AND they will get their pet projects inserted in the latest spending bill which is the reson they need to raise the debt limit this much in the first place.  Disgusted with both parties...What is an American who wants responsible, limited government to do?

The national debt is divided into two major categories, Pubic Debt and Private Debt.  Public debt is the amout of debt the Federal Govt essentially owes to ITSELF, in the form of Bonds ("IOU's) that are in public various trusts fund, i.e. Social Security trust fund ($2.244 trillion), Federal Emplyees Trust Fund ($738 billion), Military Retirement Fund ($249 billion), etc.  Basically these are funds owed to government trust funds that have money in them because of taxes collected today from the future beneficiaries of these funds.  The total owed to these funds is approx.  $7.109 trillion.  The Private Debt is debt owed to individuals (domestic and foreign), private investments funds, and other governments.  Of the total amount of the debt owed to the pubic approx. 50% is held by foreigners (counties and individuals), which amounts to about $4.280 trillion. Of this amount China owns 25% and Japan 23%, so roughly half of debt owed to foreigners is owed to two countries (OPEC countries are not too far behind).

This is a Painful Issue..

This week myself and 3 JWAC members (Alex Baker, Ben Martin, Haley Bupp) went to view a documentary called "The Greatest Silence: Rape in the Congo".  I know, it sounds like a peculiar thing.  I had NO IDEA what a problem this was.  Rape is being used by the Congo military AND "rebels" from within the Congo and from surrounding countries (Rwanda, Uganda, etc).  The conflict is mainly in the Easterm part of the Congo where it is commodity rich---oil, gold, diamonds, and  mineral called Coltan (80% of the world's supply is in this area) which is used in the circuit board of the cell phone you are using.  The central government is weak and cannot stop the rebels, and even their OWN military, from raiding these areas to gain access to these commodities and sell them on the world market.  These groups terrorize the local villages to force them to leave.  When they enter a village they pillage and brutally rape and torture women and children in front of the husbands, then kill the husbands.  It is a horrendous situation.  Coincidently, there is an article in today's New York Times that reminds us that unspeakable violence is STILL taking place in our world today.  We made an excellent contact at the documentary viewing and JWAC will try to bring them to campus to further inform us on this human rights issue...PLEASE JOIN US!! Help create awareness of these types of issues!!

Forget 2012---THIS is the sign of the coming Apoclypse!!

China passes the US in the purchase of New Cars. This is actually a good sign for the US.  The Chinese have been notorious savers and there are signs that consumption spending is increasing as the emerging middle class flexes its economic muscle.  As incomes rise they will buy not only more Chinese goods and services but more imports (perhaps even from US businesses!).  In addition, with a depreciated dollar there is an incentive to buy US goods/services.  Gee, maybe even our cars! 

What do the 3 Stooges and College Football Have in Common???

Seriously, dont they have better things to do...Seriously....

Helping the Developing World One Village at a Time...

Women taking control in an area that traditionally leaves them with out social/economic power to be independent.  This is one reason why we are in Afganistan (at least how I rationalize it in my mind) and why we need to "finish the job". If we don't then these women, will lose any hope of living a "free" life and to progress in society.  We all know the horror stories of the Taliban rule.  It seems safe to assume that life will return to the way it was for women in the area.  Why do "feminists" seem reluctant to speak out against this? I mean really speak out and take action.  We need to support efforts like this, not with mis-guided aid that benefits contractors and foriegn suppliers, to build a confident and self-sufficient Afganistan.  I know these micro-economic activities are taking root ALL over the world in developing countries.  Why dont we hear more about them? Numerous organizations, from CARE to non-profit entrepreneurs like http://www.indegoafrica.org/ are making life better one village at a time.  I actually hope governments DO NOT get involved in this. Best left to people who REALLY care about genuine development....

Walmart Practices blatant discrimination...

Example of 1st Degree Price Discrimination in Microeconomics...Walmart is trying to capture as much Consumer Surplus as possible!!