iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Bob Cesca

Bob Cesca

Posted: October 14, 2009 05:04 PM

Punishing the Health Insurance Cartel for Extortion and Fraud

What's Your Reaction?

The health insurance cartel tipped its hand this week, and, for that, they deserve to have it chopped off.

If there was any lingering doubt about the ethical bankruptcy of the cartel, we now have incontrovertible evidence in the form of a new report commissioned by the health insurance lobby. Among other things, the report threatens that if health care reform passes (presumably unchanged from the Finance Committee version of bill), the cartel will raise premiums by 111 percent.

What the cartel didn't mention, however, was the obvious: if health care reform doesn't pass, they'll raise premiums anyway -- and if history is any indication, premiums will rise by roughly the same amount. In fact, if nothing is done to regulate the cartel, the average family's annual payout to health insurance premiums will skyrocket from $13,000 to $24,000 by 2019.

They didn't mention that at all.

Good people.

They're not even shy about it anymore -- their naked extortion and fraud. It's that scene torn from an action-adventure movie in which the villain convinces a hostage to acquiesce to a demand, only to shoot the hostage anyway.

What makes the whole thing especially despicable is the fact that the independent research firm that was commissioned to perform the study revealed yesterday that AHIP (America's Health Insurance Plans -- the cartel's lobbyist wing) didn't provide them with all of the details of the Finance Committee bill. Consequently, PricewaterhouseCoopers only evaluated the impact of parts of the bill.

This admission only amplifies the otherwise patently false and misleading conclusions of the study. But, predictably, none of this prevented the Republican members of the Finance Committee from quoting the report during yesterday's pre-vote session, nor did it stop AHIP from referencing the report in their statement following the Finance vote.

So not unlike the coercive give us your money or die business model of the cartel itself, the health insurance lobby is using verifiably false information and outright threats against members of Congress, the White House and, not to mention, you and me, in order to stop health care reform from becoming law. They're playing with our lives here. And, as Keith Olbermann pointed out last week, they're exploiting our natural will to live, while also exploiting the darker political instincts of our elected representatives as a means to preserve their status as a largely unregulated cosa nostra (the real cosa nostra at least has RICO to keep them in line).

Oh, and by the way, it's worth repeating that the Finance bill is still mostly crap. So throw in the fact that they've made us have to temporarily defend the Baucus plan as another line item on the cartel's lengthy syllabus of trespasses.

So what should happen now?

My first instinct -- and this is why I wouldn't last very long in elected politics -- would be to nationalize the industry. Sorry! They want to threaten us? Then suck on this. Nationalize Aetna, WellPoint, CIGNA, UnitedHealth and the others, and be done with them once and for all. Americans could "keep the insurance they have" but the government would control all of it. And since the cartel doesn't "produce" anything, it can't be defined as socialism since the government isn't necessarily controlling the means of production.

But that's just me.

Short of that, let this be the inciting incident that coalesces congressional Democrats around a robust public insurance plan. No triggers, no more compromises. A public option that pays Medicare rates and is available to all Americans -- everyone.

President Olympia Snowe and Vice President Joe Lieberman might not like it, but the House of Representatives certainly will. By my count, we can lose Snowe, Lieberman and the others and still pass health care reform with 50-plus-Biden (following 60 votes to break the Republican filibuster). But we can't pass health care reform without a public option because the Progressive Caucus in the House won't allow it to pass. This being the reality of the floor votes, let's stop pulling punches and stick it to the crooks who are threatening everyone with extortion.

Next, Harry Reid should insert into the Senate bill a version of Senator Wyden's free choice amendment allowing everyone, regardless of current employment status or income, to buy into a plan from the exchange (which includes the public option). Open up the public option and the subsequent affordable premiums from the exchange to all Americans.

And finally, the Senate ought to strip the health insurance cartel of its shocking exemption from anti-trust laws. I'm not entirely sure how they managed to swing this exemption in the first place, but dammit, I would love to be refunded all of the additional cash I've paid out over the years to companies that weren't even required by law -- like every other industry save for baseball -- to compete for it. Fortunately, we learned today that Senators Schumer and Leahy worked with Harry Reid to make this happen. While we're here, I would also include a cap on premiums at around 10-20 percent of the rate of inflation, but again, that's just me. I'm a little pissed and fed up.

The next several weeks will very likely see new levels of stupid from both Congress and the establishment media. Much of this stupid will revolve around the public option and how exactly the cartel ought to be regulated. As we look forward to violently bashing our heads against our keyboards every time Politico posts another anonymous quote from an intern stationed in the White House basement's steam pipe trunk distribution venue, it'll be crucial to remind our elected representatives about how, in the past, America has risen up to confront enemies both foreign and domestic.

Remind them that we're Americans, and Americans don't easily suffer threats and thuggery, especially when it comes to matters of life and death. Here and now, we refuse to be pushed around and gouged and coerced and, in some cases, killed for the sake of insurance industry profit-margins and executive bonuses, and we expect the politicians who are tasked with serving us to hold accountable the corporate criminals responsible for it.

Bob Cesca's Awesome Blog! Go!

 
 
The health insurance cartel tipped its hand this week, and, for that, they deserve to have it chopped off. If there was any lingering doubt about the ethical bankruptcy of the cartel, we now have in...
The health insurance cartel tipped its hand this week, and, for that, they deserve to have it chopped off. If there was any lingering doubt about the ethical bankruptcy of the cartel, we now have in...
 
 
  • Comments
  • 457
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Bloggers
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (14 total)
10:40 PM on 11/11/2009
In all other forms of business if they fail to meet their claims you don't have to pay. Doctors are held to a different standard. If a prescribed course of treatment doesn't work the patient, their insurance company still has to pay. If we were to change that approach it would put more 'bad' doctors out of business while lowering the cost of health insurance and malpractice insurance. That option is not available for healthcare consumers. It should be.
I know for a fact that insurers care nothing for cost control. They will pay whatever the provider charges with no thought to the quality or the success of the treatment.
On tort reform, the cost of malpractice is because insurance companies hardly ever fight Malpractice suits. They would rather settle the case than risk an unfavorable jury award. Then they will raise the premiums on the doctor until the doctor has to overcharge for his service or give up his practice. However, many malpractice cases have little or no merit and can be fought and won by the insurance company for a good deal less than the cost of a settlement.
I support free enterprise, a free market economy. However, rampant capitalism leads to excesses and abuses. The healthcare and the health insurance industry is just such a situation. Since these industries either fail or refuse to regulate themselves then it becomes incumbent upon the government to exert regulations on behalf of the consumers. On behalf of US.
~;^}>
01:53 PM on 10/21/2009
A public option and busting the insurance racket would be a major victory for the people. I hope the Democrats go through with this. I'll forgive them for not impeaching Bush if they do.

THIS IS THE CHANGE WE NEED.
photo
HUFFPOST SUPER USER
liberalOrgonian
12:59 PM on 10/21/2009
What I do not understand is
If Repubs really believe in PRO life:

Then why don't they support affordable Health Insurance for all?
Doesn't pro life mean wanting things to live?
And how about quality of life!

Abortion rights:
Is it pro life when repubs dictate to a woman she can not abort a pregnancy?
Is it more like control of a woman's body?
Yet they do not want to be supportive of children' needs (s chip headstart etc ).
They say get government out of the way, yet want to climb up into female's uterus and control what happens there.

Then there is war, so how is that PRO life?
There are so many contradictions in this philosophy.
It does not make any sense to me!!!!
photo
HUFFPOST COMMUNITY MODERATOR
tgd
"The more I see of man, the more I like dogs."
12:21 PM on 10/21/2009
"I'm a little pissed and fed up"--my sentiments exactly. Very well expressed!
photo
HUFFPOST SUPER USER
William1950
everything I say could be wrong.
12:55 AM on 10/19/2009
HR676....HR676! or nothing at all.... it's not even on the table, but it is the only way to go... HR676. I have written the President, and any senator and congressman that will take e-mail... HR676!
09:24 PM on 10/18/2009
They are mafia cartel.
09:18 PM on 10/18/2009
I've been wondering recently if it would be possible to get enough people/businesses together to stage a nationwide health insurance boycott...Just for a month or two, to make a hit on corporate profits and their share values on the stock market.
08:35 PM on 10/18/2009
It just seems to be a disheartening fact that both democrats and republicans are in on the take. You knew Republicans were, but now I'm fairly certain democrats are too.

Obama used the term, "economy brought to the brink of ruin". So why arent the national attorney general, the NY attorney general, and the FBI CRAWLING over wall street trying to find the crimes that were so obviously committed? Has the white house told them to "back off" and let Goldman fix things ? What exactly does the 'brink of ruin' mean then?

Oh well, at least they're going to nail that guy who lied about a balloon.
photo
HUFFPOST SUPER USER
PetrBuben
controlled demolition, irrefutable evidence
08:13 PM on 10/18/2009
NO question we need a Universal public-private national healthcare system NOW. To stop mega-fraud overcharging extortion current private scheme.

Killing for profits? - no!

We need to stop this slavery-like, fascist-like - 'eliminate the poor and weak' - biggest racket scheme on earth.

http://friendfeed.com/healthcare - http://friendfeed.com/BarackObama - http://newsrecord.wordpress.com
07:18 PM on 10/18/2009
How often have we heard the promise to effect savings by cutting "waste, fraud, and abuse?"

Can anyone reading this cite one example of waste, fraud, and abuse actually having been eliminated and the resulting savings documented?
07:46 PM on 10/18/2009
One more thing re "waste, fraud, and abuse."

If they were eliminated how then would the bloviating politicos be able to promise that they'd fund something using the savings they'd get from the elimination of waste, fraud, and abuse.

From this, in a cockeyed way, it would seem necessary that we continue to have waste, fraud, and abuse since they are the source of funds for new programs and projects.
06:54 PM on 10/18/2009
New definition of Health Care bi-partisanship: Getting Olympia Snow to vote YES.
photo
HUFFPOST SUPER USER
iMissMollyIvins
Middle-aged, Middle class, Midwestern Populist
03:08 PM on 10/18/2009
Eliminate the Middle Man!!!
photo
HUFFPOST SUPER USER
Ralph Noyes
I rant therefore I am.
04:47 PM on 10/18/2009
The insurance industry's take -- for their administering, their overhead, their PROFITS -- is a third to 40%.

Add on the business of the for-profit hospitals -- do every unnecessary, coded ($$$$$) procedure possible before going to the real, obvious problem the patient has -- and you have a recipe for massive systemic fraud by the health care industry.

These businesses ALL deserve to be confiscated for their crimes.
photo
HUFFPOST SUPER USER
Ralph Noyes
I rant therefore I am.
04:52 PM on 10/18/2009
I meant to say, "the business MODEL of the for-profit healthcare industry".

My rough guess is that 60% of everybody's health care dollar goes to fraud, waste, and management -- very PROFITABLE fraud, waste, and management for the insurance company parasites and THEIR parasites -- the for-profit healthcare industry.

Socialized medicine, in whatever form, could help but be LESS WASTEFUL than the Augean Stables we are enduring now.

Remember National Health Care -- now Tenet HealthCare-- fined $850 MILLION for Medicare fraud in the mid-90s. They're still in business, bigger and badder than ever.

There needs to be some kind of corporate "death penalty" (figuratively speaking, you murons!) for corporations that rape the taxpayer.

Like Tenet.
09:55 AM on 10/18/2009
A denial of a claim or procedure if it results in death or serious bodily injury is tatamount to murder and should be prosecuted as such. Plain and simple. THAT is where we need a death board. This is the age of the relational data base. We got Google, Apple, Microsoft all these great companies. You mean to tell me not one of them could put on a simulation and show us how it would work. Baloney. I;ve seen them. They are doing what every good republican does every day of his miserable life : he's stalling hoping you run out of tume, patience or money. It's what they do. It;s what they;ve always done. It's what they are always gonna do.
This user has chosen to opt out of the Badges program
photo
doriath22
Born-again Jacobin. Robespierre had the right idea
09:22 AM on 10/18/2009
I did not make a single claim between 2001 and 2006, yet my premiums rose by over 300% during that period. Screw those bastards, and lets get a fair system in place for EVERYONE! Single-payer works.
HUFFPOST SUPER USER
1tourist
03:04 PM on 10/16/2009
Stop complaining, it's mainly your grandchildrens money.
09:33 PM on 10/16/2009
No, it's your 401k. stolen by the Banksters.