May 2000
Volume 64 |
Number 5
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ADMINISTRATIVE UPDATE
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| Ability Insurance
Available |
Barry M. Glazer, M.D., First Vice-President
Types of Insurance
We buy insurance to cover the costs that we cannot afford to
bear ourselves (or choose not to bear ourselves) in the event
of an unexpected occurrence or large loss. Based on that, many
of us purchase life insurance, homeowner's insurance and automobile
insurance. On some policies, we may have a "deductible," an amount
for which we will assume the risk ourselves, in order to reduce
our premiums.
As medical professionals, most of us probably also purchase
professional liability insurance and disability insurance. Through
our disability insurance, we have a different kind of "deductible"
-- we choose a waiting period before benefits begin that might
range from a month to a year. Again, we do this to reduce our
premium by assuming some of the risk ourselves.
Ability insurance
What can we do to protect ourselves from loss of income while
we are not disabled? What kind of insurance do we buy for
protection against the intrusions of government and third-party
payers into what was once the singular bond between patient and
doctor, but has now become a three-way relationship, where patient
and doctor feel like second-class partners? How do we protect
ourselves from others who, with less education, attempt to enter
our profession through the back-door of expanded scope-of-practice
legislation?
I maintain that there is a sort of "ability insurance,"
a way we can pay "premiums" and obtain some measure of protection
from these losses. This insurance is obtained by becoming an active
member of your professional societies and supporting their political
action committees (PACs). Before you groan and stop reading, please
let me explain how it works.
ASA and the American Medical Association (AMA) recognize that
their members want as a primary membership service all the protection
that can be provided against the direct and indirect economic
losses caused by decreased reimbursement and unqualified competitors.
Working to provide this protection is one of the primary activities
of each of these organizations.
PACs, the Legislative Process and Politics
Because of the enormous role that our state and federal governments
play in determining our success in providing this protection,
each of these societies has formed a PAC. These PACs do not guarantee
success in the political arena, but they provide a measure of
our interest in the legislative process.
In order to do their work, legislators must be elected and re-elected.
They must therefore "be politicians," constantly concerned about
re-election and responsive to their constituencies. That is the
nature of our governmental system, like it or not.
A contribution from a PAC sends a "message" to a legislator
that we want to be in partnership with that legislator in both
the role of politician (getting re-elected) and the role of legislator
(enacting laws that affect us all). Most legislators receive such
messages from many special interest groups that sometimes will
have conflicting interests. Legislators must attempt to balance
the concerns where conflicts arise.
PAC contributions do not buy us votes, but they do gain us access
to legislators. Without such contributions, legislators may conclude
that we are not participants in the political process and that
we therefore do not deserve partnership status in the legislative
process. In the absence of our professional societies and their
PACs, legislators would respond only to the other special interest
groups, from whom they do hear.
Benefits and Premiums Are Related
Unlike a real insurance policy, the "ability insurance" that
you purchase does not have clearly defined benefits. Sometimes
we find things that are "not covered" in spite of our best efforts.
There is usually a "deductible" constituting the balance of risk
that we must assume ourselves by our personal political efforts.
Like disability insurance, there is usually a waiting period during
which we may realize no benefits.
The "premiums" that must be paid are your professional society
dues that are set by ASA and AMA, for instance. For these premiums,
a limited amount of "base" coverage exists. The "premiums" also
include your voluntary contributions to the PACs sponsored by
these societies, and here is where you may be a factor in how
much additional coverage our specialty will get.
Those in medicine who do not join professional societies and/or
PACs still benefit -- they receive the benefits of these organizations,
just as the uninsured patient receives medical care. But please
think of how you regard those who have the means to purchase insurance
but have chosen not to do so, and ask yourself if you think that
it is right to be in a comparable category within our profession.
In ASA, where members contribute an average of roughly $250
each to our PAC, approximately 90 percent fail to make a contribution
in any amount whatsoever! In other professions, contribution rates
range from 50 percent to nearly 100 percent and may have average
individual contributions of $500 to $1,000! Therefore, they collectively
average 10 to 100 times as much "premium" per member compared
to ASA -- sometimes even more!
Those in medicine have received good coverage with high-priced
"ability insurance" and probably have seen a positive return on
this insurance investment. The time has come for medicine to step
up its own investment in protecting its interests. Please help.
Contributions to ASAPAC may be sent to the ASA Executive Office,
520 N. Northwest Highway, Park Ridge, IL 60068-2573, or fax (847)
825-1692. There are also usually about three yearly mailings to
remind you.
Do not spend another day without maximizing our profession's
coverage, a coverage that provides us with the vital protection
that our individual and collective futures require!
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