oleeb's picture

    The Insurance Industry Profit Protection And Enhancement Act

    According to Sen. Bernie Sanders, 18,000 Americans die annually because they do not have access to our medical system.  A million people declare bankruptcy annually due to their inability to pay medical bills.  Medical expenses are now the number one cause of bankruptcy in America.  Countless Americans are routinely denied medical care they need and that their doctors have recommended because of the effort of insurance companies to maximize their profits at the expense of the health of the American people. 

    Currently, insurance companies are firmly and unquestionably in the driver's seat when it comes to healthcare decisions in the United States: not doctors, not patients.  The insurance companies ration care based on how much profit they wish to generate, not on any basis even remotely related to the interests of those who need healthcare in America.  Given these indisputable facts, why are our political leaders making preservation of the current system the central priority of alleged healthcare reform legislation?   

    Along with numerous others, I've been advocating that progressives in Congress should kill any healthcare reform legislation that does not include a strong public option that will force the insurance companies to improve their practices or lose their businesses. Yes, lose their businesses. That is what is supposed to happen when actual competition is introduced in any marketplace: somebody wins and somebody loses. The winners are those that provide the best value to the consumer in relation to how much they are spending on the product or service. That's supposedly the reason why capitalism is worth having. 

    Our current, for profit healthcare system is more mercantilist than capitalist.  No genuine competition between insurance companies exists  nor does any substantive choice exist for consumers.  So the beneficial aspects of a capitalist approach for society have been eliminated.  Instead, we have a noncompetitive marketplace designed to guarantee profits for the broker (not the provider) of medical services and no other genuine choice for those who need to access the medical system.

    The opponents of substantive and meaningful healthcare reform are doing all they can to maintain a competition free marketplace for the insurance companies that are bleeding our families and businesses white. Their primary tactic is to preserve the status quo in a form as close as possible to the form in which it exists today. They are accomplishing this goal by eviscerating every bill in Congress to the maximum extent possible and watering down every aspect of legislation that would negatively impact insurance company profits and the profits of the associated parasitical businesses.  All those industries have grown obscenely and unjustly rich at the expense of the people of the United States.

    The strategy at the moment is to bamboozle the public into believing that a bill that does little or nothing to reform our healthcare system, but much to protect and increase the profits of the insurance parasites is actually healthcare reform when it clearly is not.   The insurance and associated interests have flooded the halls of Congress with their legalized bribes (campaign cash) in order to buy just enough loyalty to scuttle any threats to the continuation of their outrageous practices and the obscene profits that result from them. Remember, insurance companies are nothing more than middlemen who profit from transactions to which they add not one scintilla of value to any medical service: ever.  Yet they decide what is and is not allowed, what will or will not be paid for based upon how much profit they wil make instead of the healthcare needs of patients.  It's simply an immoral basis upon which to operate a healthcare system.

    Protecting the interests of these companies who have been profiting off the denial of care to sick people for decades is the most shameful and perverse aspect of the charade going on in Washington over healthcare reform. In addition to all the Republicans in Congress, among the ranks of those protecting the insurance and other parasitical interests and opposing meaningful healthcare reform are all the corrupt, cowardly Democrats such as Baucus, Reid, Lieberman, Landrieu, and all the other alleged moderates and Blue Dogs who bow and scrape to the power and wealth of the insurance industry. I would include also the DLC Democrats at the top of the food chain at 1600 Pennsylvania Avenue including especially Rahm Emmanuel and David Axelrod who are doing all they can to convince Americans and progressives particularly that "any" bill is better than no bill when that is simply not true. "Any" bill might be better for the short term interest of the political hacks at the White House and for protecting the President's political fortunes at this moment in time, but in the long run, a faux healthcare reform bill will do far more damage to Democrats from the President on down the line than anything else including losing an honorable fight for a good reform bill and any progressive with the slightest common sense ought to be able to discern that this is the case.

    If it is true, as the President said last week (and I believe it is), that this is a moral issue then it is clear that the advice of the political hacks is not acceptable.  Why?  Because, at it's heart, if all we get is an insurance subsidy bill without a strong public option it isn't reform at all and there will be no benefit for the American people worth the heavy price paid for "any" bill at "any" cost.  

    A bad bill is, in fact, worse than no bill. It's that simple.  Why?  Because we will be stuck with a set of "reforms" that do little or nothing to improve the situation for the average citizen and the schemes being proposed are onerous. A bad bill will provide all the ammunition the forces of the status quo need to prevent any further "reform" for the next generation or more.  And please, don't hand me that cliche of not letting the perfect be the enemy of the good. We are, after all, only talking about including a strong public option when we should have been talking about a single payer plan all along.  So that tired line is nothing but pure BS employed by cowards to cover up their failure, or is it betrayal? 

    Whenever DC Democrats start using that canard you know it means the people are about to get screwed... again. Besides, that perfect vs good analogy isn't what is shaping up anyway. What is shaping up is that the corporate Democrats who have led our party to defeat, retreat and humiliation time and again are making the bad the enemy of the good. The good, at minimum, includes a strong public option. No public option means there's nothing else in the bill that can make up for the failure to include that feature. Period.  So, how is it in the best interest of the Democrats and the nation to go down that road once again with the corporate Democrats whose rotten leadership has been demonstrated over and over and over?  Well, the fact is, it isn't in the best interest either of Democrats or the nation and we shouldn't follow the corporate/DLC Democrats over that cliff.

    Last night on Countdown with Keith Olbermann, there was a segment on the day's developments regarding the healthcare reform legislation in DC. One part of the segment had a clip of testimony being given at a healthcare forum on the Hill by Wendell Potter, the former Communications Director for CIGNA, one of the largest of the health insurance companies. He knows from his many years as an insider in the industry exactly how these companies play the game, what they're up to and why they do what they do. He was very direct in his statement about what the failure to include a strong public option means and by extension, it is clear that defeating a bad bill (one that doesn't include a strong public option) would be better than passing a health insurance subsidy bill as is clearly the intention of the administration and Democratic Congressional leadership at this point.  Here is what Mr. Potter said:

    If Congress goes along with the so called solutions the insurance industry says it is bringing to the table, and acquiesces to the demands it is making of lawmakers and if it fails to create a public insurance option to compete with private insurers, the bill it sends to the President might as well be called "The Insurance Industry Profit Protection And Enhancement Act."

     

    The quote from Mr. Potter is at about the 1:35 mark in the clip and can be seen at the following url:

    http://www.msnbc.msn.com/id/3036677#32868158

    Between now and whenever a bill nears passage, the best thing progressives can do is to apply as much pressure as possible to the wishy washy, corrupt corporate Democrats in Congress by calling them and insisting they support a public option just as a strong majority of Americans do and also to contact the progressives in Congress and encourage them to hold fast and kill any legislation that fails to include a strong public option and not to settle for less.

     

    Comments

    Well stated Oleeb! Thanks for this post.

    I am communicating with congress and white house every day on this issue now. I can't fax every day. I don't own a fax machine so I do call and email as well.

    I had an idea. We can't stop using health care and medications in protest because it would compromise people's health.

    We could however try to organize a day of 'no shopping'. We could plan a day where we all plan ahead and we do not shop in any stores or restaurants. If we could organize across the nation. Maybe we could circulate a petition type statement where people sign on to commit to this and choose a date that is far enough out to give the most time to gather support and yet a date that would have impact during the process.

    If we could get labor, moveon, and DFA, and other organizations we might be able to get people to do this. Why? Because they don't have to go anywhere. Show up for anything... just sign on and participate by not shopping on that day.

    The goal would be to have big numbers on the committed to demonstrate the numbers of people who refused to shop, eat out, etc. And it would be felt economically which is the only thing I can think of. Thoughts?


    I know that there are many drafts out there and one bill is yet to have hand over another bill, but a private insurance mandate just seems a bit strange to me. Ok, I can't afford insurance so the government will spot me to get private insurance? WTF?

    I'd rather keep my insurance, but if need it be able to snag a public one. The auto insurance health insurance analogy just seems weird for me, someone who rides a bike to work....




    Hmmm....

    "No Shopping Day in Support of the Public Option"

    Pick a date.

    Get it viral.

    ~OGD~


    Well, perhaps the mandate idea seems weird to you because it is a weird idea that is only in play because our leaders do not want to upset the powerful insurance companies. This is a way for weak government leaders to cover more people without incurring the wrath of the insurance interests. Those interests are mollified because they are being handed lots of profits that they don't have to do a thing to "earn" but they are not being asked to do anything different other than eliminate the pre-existing condition exclusion. It's a really great deal... for the insurance companies. Not much of a good thing for the people. A public option is a much, much more desirable alternative, not to mention single payer which is what we ought to be striving for.


    The only way a mandate is justifiable is if it is affordable which it totally is NOT in this bill. This is regressive taxation weighing most heavily on the working class.

    It is impossible to be both liberal and a Democrat. Impossible.


    I will if I get more feedback. I was thinking a lot about this today. I would like to know more about the schedule in congress before picking a day.

    I was thinking that if we could make something like this work, even partially... we could build on it and use this to demonstrate about ending wars, torture, and other major issues.

    Isn't that part of what they did in Iraq, protested by preparing and having days where they would not shop at all?

    I would like to hear more pro and cons etc on the idea from folks before expending energy.


    No bill at all is better than anything we are likely to get. Obama is too weak to get it done. What we needed was a nasty old pol like LBJ! Americans are such idiots!


    Synch, this is a great idea. It would have to be far enough ahead so that we could organize it well. How about just before Christmas?

    We could make up widgets and banners for websites, etc, and send them to Moveon and every other place we could think of.

    Great idea. I'm in.


    Good idea if we can sell it. Key is to not go off half-cocked. We can't be a headline on Fox/Beck about how it fizzled, so need to really organize it.

    How feasible is it realistically? I am wondering...


    The working stiffs will have a new tax, insurers will be able to steal more money and privatizing SS was a better idea.

    THIS BAUCUS SUCKS


    Well in actuality the most important part would be getting a big enough number of people on board. Seems very feasible for one day.

    I mean, can you go one day without shopping anywhere... forgoing McD's etc.? to demonstrate support for a public option?


    No time atm to read this post, however, I did sit back last nite an skimmed the 200+ page bill.

    *There's bronze, silver, gold and platinum packages the industry has to offer to the public.
    *An obscure reference to a maximum of 13% of a person's salary for insurance premiums - I suspect if your policy costs more, you get to drip into the Federal Reserve for the difference.
    *Everyone must acknowledge on their tax form to the IRS every year what they spend on health care insurance.
    *A $h1tl0ad of rules and regulations regarding what Medicare and Medicaid will do - but nothing saying what your bronze plan will do ... strange.
    *Health wellness and prevention is only mentioned in Medicare/Medicaid - completely absent from the insurance industry.

    That's about as far as I got. Going to sit down later today and cherry pick out specifics from each section to see exactly what it says,and whom it applies to. So far my impression it's a windfall for the industry in that it forces everyone to have insurance under penalty of law, doesn't require the industry to provide any level of service as well as any cap on premiums depending on income level. And any rules or regulations are strictly aimed at government health care services.


    I wish I could rec'd this about 1,000 times. The D's are being set up by the R's and their corporate owners to ensure any reform fails and for the near/mid terms puts the kabosh on any attempt to regulate the health care industry.

    My take away passage from oleeb's outstanding post is;

    "Our current, for profit healthcare system is more mercantilist than capitalist. No genuine competition between insurance companies exists nor does any substantive choice exist for consumers. So the beneficial aspects of a capitalist approach for society have been eliminated. Instead, we have a noncompetitive marketplace designed to guarantee profits for the broker (not the provider) of medical services and no other genuine choice for those who need to access the medical system."

    That gets right to the heart of our problems and must be changed or the for profit health care industry will, morally and fiscally, bankrupt our country.


    What Glenn Beck will say is a foregon conclusion. There were 1.7 million people on the Mall 9/12. Maybe we did not know waht figure he would pull out of his butt, but we knew he would lie. It's about what CNN says and the networks. FOX is detached from reality. They are not an entity one could hope to change. Hope they dissolve.


    As Ezra Klein notes, this Baucus plan is more or less the same as the GOP plan of 1994, proposed by Chafee. Enough said, really...

    On the bright side, now Baucus is no longer sitting on HCR until it dies. The bill will get voted on and then the game's in Conference. Hope Reid picks the right negotiators.

    Great post Oleeb.


    Good post! We should at the very least keep a list of the senate health insurance "enablers" and campaign against them when they run again.Health reform to me simply means national health vs Insurance Company profit at any cost paradigm.Anything that contributes to business over peoples life and livelyhood is immoral and cannot be sustained.


    oleeb, I've parsed the first 15 pages of the Baucus bill and fired off a memo-for-record with my Senator.

    I'm one of your supporters from Nevada and currently I'm working overseas supporting the troops in Europe. I would appreciate a bit of your time concerning the health care issue before Congress.

    I've begun reading the America’s Healthy Future Act of 2009 bill put together by the Senate Finance Committee under the leadership of chairman, Senator Max Baucus. I'm quite unhappy with the contents I've read in just the first 15 pages. Sir, with all due respect, what I've read is horrible!

    First, the bill discusses the spectrum of existing state rating limitations from pure community rating, to adjusted community rating, and then rate bands. I would have thought the pure community rating would have been the way to go simply because premiums would not vary based on any characteristic, including health, age or gender. However, this bill supports rate bands which allow premium variation based on health. These variations are typically expressed as a percentage above and below an established index. So if an established rate band is, say +/- 25 percent, then insurance carriers can vary premiums, based on health factors, up to 25 percent above and 25 percent below the index. It's extremely narrow in its' scope. That's not what the change the public are expecting when they hear health care reform.

    Secondly, these rate bands still punish the public for health issues they have no control over, such as aging. Note in the bill that a smoker can be penalized 1.5 times more than the cost of the primary premium for the average person. However, if you're over a specific age, say 50, then you're penalized 5 times more than the cost of the primary premium for the average person. Odd isn't it that someone who elects to engage is a habit that is the known cause of serious health related issues later in life is only penalized a third to a fourth of what it will cost someone who just grows old naturally. Luckily being here in Europe where the socialized medicine keeps the cost of health care extremely reasonable, I only pay $365 a month for health care insurance - my COBRA was $275 until it ran out. Can you imagine what I would have to pay for health care insurance if I were in the States - I estimate, at 5 times what I pay now, it would be in the neighborhood of $1800 a month. That's not health care I can believe in.

    Those are just two examples off pages one and two. I'm sure there'll be even more depressing Titles, Sub-Titles and Parts to weed through in order to fully understand just how much of the public trust has been left shipwrecked on the shoals corporate and capitalist lust and greed. At least Gilligan's Island was a comedy. This is seriously becoming a theatrical farce in the making. As a Nation, I know we can do better than this. Please don't disappoint me.

    Of course I had to get out the axle grease and lub it up just to make sure it doesn't end up in the bit bucket as a crank e-mail of no concern. I'll post any substantial reply if they bother to send one.



    Isn't that too late? We need to do it before the votes. Also, just not shopping isn't enough. We need to go to stores with arm bands, hats, and flyers and NOT buy ANYTHING. Talk to people about why; advocate. There will be people shopping, and there will be people working in the stores. We have to take the tone that we are there to EDUCATE; not just protest.


    I tend to disagree with one thing you stated here, Libertine:

    The D's are being set up by the R's and their corporate owners to ensure any reform fails and for the near/mid terms puts the kabosh on any attempt to regulate the health care industry.

    I'm afraid the D's are willing participants in this kabuki theater.

    They have pretended to be in favor of legitimate health care reform, but they have offered tepid support at best for anything that might bear negative impact on the health insurance industry's ability to maintain rapacious profits. Indeed, perhaps the greatest puzzle throughout this health care reform debate has been the D's unwillingness to pursue single-payer or the public option despite polls showing overwhelming support for both. They have simply rolled over on anything like the public option, crying that the Repubs and the Insurance Industry just won't let them get it done.

    "WE've worked hard at this," the Dems will tell us. "Let's celebrate the fact that we finally arrived at a bi-partisan bill."

    And then they will wrap a bow around this stinking pile of shit and applaud the successful outcome of their health reform that looks like little more than a "Health Insurance Industry Profit Enhancement Act of 2009."

    It is kabuki theater. The GOP opposes anything the Dems propose, especially anything that doesn't serve the interests of the Health Insurance Industry, This keeps their base happy and also keeps the health insurance lobby's dollars flowing into their coffers.

    Meanwhile, the Dems advocate for health care reform, and work REALLY hard to achieve a bi-partisan health care reform bill, but are careful to not gain anything in that reform effort that negatively affects the interests of the health insurance industry. This keeps their base happy and also keeps the health insurance lobby's dollars flowing into their coffers.

    There truly is a bi-partisan cooperation in performing the roles ascribed to the Dems and Republicans in this dance. And it truly is a win-win for both parties.

    But this win-win bipartisanship is accomplished at great expense to the rest of us who so naively thought that Obama would at last bring a little "Change We Can Believe In" rather than the same old corrupt Washington politics.


    I'm heavy into parsing the bill line-by-line and I'm getting some really good cr@p out of it. It's definitely not written in the public's interest.

    Here's a couple of points I gleaned out of the bill so far:
    1. The bill is not for and does not address the fact that personal medical expenses are too much for the average family to bear. They're silent on the issue. Their focus is 2013. They are completely oblivious to the fact there is a crisis happening now. In fact, I get the impression basic rates will increase, not decrease.
    2.The insurance companies ration care based on rate bands developed by each State's insurance commission. Those rate bands revolve around an index which i suspect is the primary premium price for a policy based on someone like, say Jesus divinely healthy. Once an index is established the the auction starts as to how much and insurer may increase or decrease a policy based on specific known facts relating to the health of an individual seeking insurance. This is where the campaign funds really flow in the heath insurance system - at the State level not the Fed's. First, they get the index as high as they can, then they get as wide a swing on the rate band as possible. It's a win-win scenario for the industry. Odd thing is, the rate bands provide the additional income for the business above what they would normally receive for the same service, but has no impact on the outcome - still lousy service.
    3.We saw in the financial markets there were companies too big to fail per the FED and Treasury. With Obama stating on the record we already have a health care system in place so there's no reason to start all over again with a single payer, its just another way for saying the insurance industry is too big to fail too. We need the White House to refocus on the people, not the industry
    4. The serious problem with health care insurance is that at the State level, there wasn't any concerted effort by any one State or States to garner regional or national support to apply financial and legislative pressure to the industry to do better in the areas of coverage and pricing. To be honest and fair, I would blame the States more for the dilapidated condition of the industry than the industry itself - they've always had the power to make the insurance industry perform better and serve the public, but failed to carry out their duty. This bill still keeps the State holding the reins and the freedom to deviate if they so desire within certain parameters.
    6. The market is competitive amongst themselves because it falls under State's Right's an area void of federal regulation. The bill does, however, introduce a national insurance format, but it's all voluntary. Also, there's strict Fed rules and enforcement. So I doubt there'll be any takers in this arena because the Fed's can't be so easily bought off as a State legislator can be.

    The trouble the Baucus's bill is it's focused for 2013 - it ignores the current situations too as if they don't matter and are only temporary. If anything, it should serve as a guideline as what not to do. It's definitely pro-businesses and focus groups and completely void of public interest and support.

    Oleeb, you're on the right track, however, the key parts missing are the Congress critters who understand the issues and can articulate the public's point of view on the issue as sound legislation


    Headline:

    The Insurance Industry Profit Protection And Enhancement Act.

    heh heh heh, quite accurate.

    The public gets the screw and Cigna gets the driver.


    Sleepin says:

    And then they will wrap a bow around this stinking pile of shit and applaud the successful outcome of their health reform....."


    Sleepin proves again to be an astute observer of Congress.


    I've managed to get through all 223 pages of the Baucus draft by skimming. It's a mixed bag of some very good proposals and some very inadequate ones. I particularly deplore the 5:1 ratio of permissible charges based on aging, and I find the premium subsidies for low income earners to be insufficient. I expect that negotiations with other committees in Congress may lead to some improvements.

    Like others, I would prefer a public option to the proposed non-profit cooperatives, but as I've stated elsewhere on multiple occasions, I don't consider this issue central to reform efforts. I won't belabor the point here, as anyone interested can visit my blog for my reasoning.

    Probably the point I believe most needs emphasis, because it's most often misunderstood, relates to the causes of our current healthcare crisis and the consequent need for reform. They can be divided into two categories - inequitability and cost.

    Inequitability refers to denial of insurance to individuals based on health status, discriminatory rates based on health status for those insured, recissions, lifetime caps on coverage, and a number of other practices.

    Cost refers to the unsustainable trajectory we are on, which currently causes the healthcare system to consume 17 percent of GDP, and which threatens to make adequate care unaffordable for all but the wealthiest Americans.

    Inequitability is an insurance industry problem, and requires insurance industry reform (as proposed in the various bills).

    Cost is a healthcare system problem and requires healthcare system reform, with the various bills taking only tentative steps in that direction.

    To conclude that excessive cost is attributable to insurance industry excess is simply incorrect, and many of the current denunciations therefore seem to me to be mistargeted. Similarly, the current Baucus proposal, for example, can't legitimately be accused of designed to facilitate insurance industry profiteering. In fact, the insurance industry has consistently recorded low profit margins (about 3-4 percent of budgets, reflecting less than 2 percent of total healthcare costs), and their overhead costs, while higher than optimal, are not exorbitant.

    It is true that insurance reform and health system reform are linked, in that insurers currently pass excessive healthcare system cost on to subscribers, but that vexing problem is one that requires complex long-term solutions that focus primarily on healthcare itself, and would not be solved simply by adding a public option, or otherwise squeezing insurers. There is some room for squeezing, but not as much as some commenters imagine.



    Thanks for posting this. I worked pretty hard on a message to Bingaman and got back a terse, but (I think), true response from him (or most likely an aid who reads and answers for him :( ). "He" kind of side-stepped the single payer issue, and focused on a vague kind of response. ("

    Even so, a well thought out statement seems to get read. I was so happy that I'd finally gotten something different than a form letter that's only marginally related to what I'd written.


    Just found it. Nope it was from him. Rock on.


    I love this idea, but let me put on my PR cap for a moment (it's a lovely cap -- black velvet with rhinestones). The most simple questions we need to answer are: Why are we doing this? What statement are we trying to make?

    And then, we have to consider how this will appear. What arguments will the other side have? How do we anticipate those arguments and prepare to answer them? Will it look like we are against labor (after all they are the people who work in the businesses we will not be patronizing)?

    I think you have a kernel of a very powerful idea, but it needs to be filled in with details. Sorry if it seems like I'm raining on your parade. I'm not trying to; rather I'm saying, think it through a little more before moving forward.


    Agreed!


    Impressive amount of work Beetlejuice. Thanks!


    But Fred, let's be realistic. It isn't worth doing the incremental stuff without at least a public option because whatever benefits there might be are negated by the boondoggle of billions in subsidies paid as tribute to the political power of the insurance industry.

    The politics of it all just suck for the people without at least a strong public option. It isn't worth the marginal gains that might be realized (there's no guarantee we'll see any of them) unless there is a direct benefit to citizens in the form of an alternative to private insurance and that is the public option.

    The half measures otherwise proposed for the healthcare system just aren't worth doing from the perspective of the average citizen without the hope of a public alternative coming available to all in our lifetimes. A strong public option and only a strong public option holds out that promise. Anything less and it is as clear as can be that the public is going to get screwed and therefore any bill without at least a strong public option should be killed.


    http://money.cnn.com/magazines/fortune/fortune500/2008/performers/industries/profits/

    Um, Fred... click that link. Insurance is one of the top ten industry performers for profits in 2008. That's just one link. Google tells me that even the %10.8 percent profit margin is a fudged lowball number. The other top industries inclued pharmaceuticals and health care itself.

    If you are going to engage in insurance apologetics, don't manufacture numbers.


    Good point, Sir. My mistake, you are right.


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