Health Care System

Re your interview of Leonard Schaeffer (Opinion, Feb. 6): Blue Cross had to convert to a for-profit entity in order to gain “access to capital.” Since the taxpayers of California had a vested interest in Blue Cross because of decades of tax-exempt status, the state mandated that Blue Cross make a donation of $3 billion to a foundation as a condition of that conversion. The price was worth it to Schaeffer, since that conversion provided him with a lucrative benefits package characteristic of executives of other for-profit managed-care intermediaries. It was a bad deal for Blue Cross members, since it resulted in the loss of funds destined for their health care.

Medicare has been proven to be effective in controlling health care inflation while consuming a much lower percentage of funds in administrative costs. Wouldn’t it be better to eliminate the wasteful middleman entities, such as WellPoint/Blue Cross, and instead direct our health care dollars to patient care through a publicly administered program for everyone?

DON R. McCANNE MD

San Juan Capistrano