Letter: HMOs oppose patient protection laws

Tuesday, Oct. 20, 1998 | 9:57 a.m.

In opposing patient protection legislation HMO executives have repeatedly cited what have been shown to be greatly exaggerated projections of additional costs which might cause loss of coverage for some people. They also have played on public sympathies by stating that there are likely to be more lawsuits with patient protection laws, even though those suits would be for the benefit of the health care consumers.

One important cost factor, however, is always carefully avoided in their arguments. That is the outrageous portion of HMO premiums being diverted from patient care to corporate profits and executive compensation packages. For example, data from the HMOs themselves obtained through required disclosures to the Securities Exchange Commission show that for the top 25 HMO executives annual salaries in 1997 ranged from $3.7 million to $61.2 million.

When allegations are made that HMOs are more concerned with generating profits than in paying for quality patient care this sort of evidence certainly must be considered. When HMO executives complain about costs of consumer protection and legal fees, it is obvious that their concerns are inconsistent and self-serving.

Wallace J. Henkelman, Registered nurse