Health Reform Debate Turning into Bailout of Insurance Industry

It's hard not to read the new US Senate Finance Committee paper laying out policy options for health care reform as anything but a bailout of the HMO and insurance industry.

The paper has lots of policy options for the pivotal Committee, the architect of reform, to consider -- like whether there should be a public option to the private market and whether employers should be required to pay for health care. But there's one given for which there's no choice. Every American will have to show proof they have a health insurance policy on their tax returns by the year 2013. Convenient, isn't it, that's one year after the presidential election.

Okay, so the starting point for reform is that Americans have to purchase a policy from an HMO industry that has treated them horrifically. After that, the committee will make choices. Should employers with more than $500,000 have to pay something for coverage? Should Americans have a public health care option to choose from? Should health care benefits be taxed at some level? Initially, though, Senator Baucus, chair of the Finance Committee, the largest Democratic recipient of HMO money on the Hill, can make the call that individuals will have to pay for a private policy no matter what other choices are made. It's hardly "shared responsibility," it's saving a soulless industry on the backs of the American people.

Mandatory purchases of private insurance policies without offering a public alternative to the private market is nothing other than a bailout for HMOs -- whose greed, waste and indifference to our health have created the current mess.

There's no mention of cost-cutting in the Senate Finance document either -- no regulation of HMO premiums, no limits on how much consumers will have to pay out of their own pocket in co-pays or deductibles. That's what yesterday's charade at the White House with insurers, drug makers, doctors, and device makers was all about. The medical-insurance complex promised to voluntary cut $2 trillion over 10 years from health care costs without any specifics as to how because the bill for the taxpayers' share of the HMO industry bailout is about $1.5 trillion. Take it on faith the industry's efforts fighting obesity, coordinating care, and streamlining paperwork will save enough money. Isn't that what HMOs promised a decade ago?

The Finance proposal laudably expands Medicaid and offers subsidies to lower income individuals to buy private policies. But it doesn't demand anything from the HMOs in return. Those same low income individuals could do much better in a public health plan like Medicare that has 2% overhead rather than 25% for the private market. And taxpayers could save a lot of money avoiding the private market.

President Obama said during the campaign that he was opposed to mandatory purchases of private insurance, but new Health and Human Services Secretary Kathleen Sibelius said recently the president was willing to consider the mandatory purchase notion.

If the White House truly believes the cornerstone of universal health care reform is forcing Americans to buy HMO policies without cost regulation or public alternatives, the fact that individuals won't have to provide proof on their tax returns until 2013 won't save Obama his presidency in 2012.

It's time to get tough in Washington on the HMO industry rather than pretending their cooperation is going to get the nation the affordable health care Obama promised during the campaign. Having a health insurance policy today, particularly a cheap one, is no guarantee you will receive health care when you need it. The Senate should focus on making health insurance a real promise of health care before making it mandatory.

Next, we understand the Senate Finance Committee is going into closed-door session to debate the options in the policy paper. Perhaps Baucus and his caucus worry that if the details are aired publicly the public might understand the depth of the problems with letting HMOs and private insurers voluntarily make health care affordable and available.

There's a moment now to do health care reform right. It's up to the White House to prove that there's another business besides show business in Washington, DC. Otherwise, in the end, the American people will cast their review and it won't be pretty.

Comments

[Mintcondition]

Sign the petition. Time to let Washing know how we feel.

http://www.capitolconnect.com/fairhealthcare/default.aspx?utm_campaign=FairHealthCare_Viral&utm_source=&utm_medium=TAF_Email&utm_content=&utm_term=&FriendID=271b3317-6d01-48c1-9d5d-119b9b4fbca0

[Mintcondition]

It's time to start sending emails to www.whitehouse.gov, to express our dismay. Not change I can believe in.

[Mintcondition]

Good afternoon,

You are receiving this email because you signed up at WhiteHouse.gov. My staff and I plan to use these messages as a way to directly communicate about important issues and opportunities, and today I have some encouraging updates about health care reform.

The Vice President and I just met with leaders from the House of Representatives and received their commitment to pass a comprehensive health care reform bill by July 31.

We also have an unprecedented commitment from health care industry leaders, many of whom opposed health reform in the past. Monday, I met with some of these health care stakeholders, and they pledged to do their part to reduce the health care spending growth rate, saving more than two trillion dollars over the next ten years -- around $2,500 for each American family. Then on Tuesday, leaders from some of America's top companies came to the White House to showcase innovative ways to reduce health care costs by improving the health of their workers.

Now the House and Senate are beginning a critical debate that will determine the health of our nation's economy and its families. lity and affordable health care for everyone, and guarantee all of us a choice of doctors and plans.

and tell them to join us here:

http://www.whitehouse.gov/EmailUpdates

[Diana]

Why does this missive impress you enough for you to post it?

"Monday, I met with some of these health care stakeholders, and they pledged to do their part to reduce the health care spending growth rate, saving more than two trillion dollars over the next ten years -- around $2,500 for each American family."

Single-payer, the only rational option, is off the table. The only ones AT the table are health care corporations, who's fiduciary goal is to make a profit.

The corporations have 'pledged' to help save 2,500 for each family over 10 years!? For heaven's sake, while each family is saving a measly $2,500 a year, they're probably paying out 10 times that in insurance premiums alone!

And using our tax money to pay corporations to help us pay the premiums, well, it's simply another example of the transfer of wealth from taxpayers to corporatio­ns--insane­!

[judgej]

It's upsetting to hear that health care reform is really only going to be an insurance company bailout scheme. The HMO concept has been the biggest insurance scam in history, has single handedly taking medical care out of the hands of doctors, and has endangered patients, and should not be promoted as reform in any form. There is another alternative that is outside the box that would allow medicine to be between doctor and patient, and cost much less for consumers, and I for one have tried to get those in power to listen to the idea. But no one in power cares to step outside the box and listen to any other idea that does not involve keeping the old guard insurance companies on line and continuing to make enormous profits at the expense of those most vulnerable in society. It's a shame, really.

[karela]

There actually is a valid reason to require all Americans to have health insurance. The reason is that younger and healthier people need much less care than people with disease processes and the elderly. If only the people with heavy needs are insured, two things happen. First the cost is prohibitive for the insurance and second you get insurance companies refusing insurance for previous conditions. If the cost and the risk is spread out over the entire population, then it becomes much more possible. Bad things happen to young people too and it's a good idea to have insurance, but often they don't buy it unless it's provided at work.

On the other part, we certainly should have a public option. A hundred million Americans are either uninsured or under insured because they can't afford it or because they've been refused coverage. The insurance companies are worried that about that many Americans will opt for public insurance if it more affordable. Why do they care? That the number of people they haven't been insuring anyway. If public health insurance can be offered at a more affordable price, it should not be held back or priced up in order to keep insurance companies fat. This isn't about insurance companies. It's about a hundred million Americans who can't get good care and another two hundred million who are paying too much.

[jmpurser]

If there's a valid national interest in making sure that every American has health insurance (and there is) then there is no valid argument for government NOT providing it.

Either the people of America sign up for 306,000,000 insurance policies or the US government signs ONE.

Which sounds more efficient to you?

[Sundialsvc4]

Here's $500 million. In gold coins. No one will ever know you have it. Does that help you understand the wisdom of this wonderful policy?

It's simple: those few who have insurance are soaked repeatedly for procedures that they do not need (but that make them feel good and probably do not kill them). We charge hundreds or thousands of dollars for these procedures, which cost us next to nothing to perform. Result = profit.

Sick people? "If they are going to die, then they had better do it, and rid the world of its excess population." We turn them away at the door for "no insurance" and if they come to the ER where we can't refuse them we throw them out of the hospital at 11:59 PM.

Oh, you seem to be squirming. Here's another $50 million "campaign contribution." Don't worry... you'll get used to it ...

This is NOT about providing health care: we don't do that. It's about providing profit. To people, say, like you. Here's another $50 million and then I gotta go...

[Samalabear]

Health care or health insurance must be separated from business, period, of this country will never be competitive in any form again.

[Sundialsvc4]

Should, heaven forbid, that flu actually plant itself here, it will spread like a wildfire from hell itself among the uninsured wage-slaves. Then, in a typical closed-system office building, it will make "Legionnaire's Disease" look like a cake walk.

Let us hope that stupendous folly such as this is not made plain by the Grim Reaper himself. But without a doubt, "the vector is there and waiting."

[lazy eye]

Real Health Care Reform is a shot in our economic arm for decades to come only if our lawmakers have the courage to do it right and make this a more productive nation and save our business small and large. “May no American ever worry about getting sick again”

[WorkingClass]

If the Democrats fail to deliver on health care they are finished as a national political party. Anyone who thinks that the only alternative is the Republicans is just plain stupid. The not yet but soon to be announced American Labor Party will be a magnet for the 70% of American workers who work for wages. Only the working class has the muscle to overthrow our corporate masters and the whores in congress. Together we will take back our country.

SOLIDARITY

[Ben6768]

American Labor Party ? I will vote for them !
Im tired of GOP and DEMS : two sides of the same coin : Big Money . Where can I sign up ?
The two parties we have now are HOPELESS !!!

I wont vote for Obama again : he is a very good man but does not seem ready to stand up to the big Monsters. If he cant stand up to the health insurance cartels its the end.

2012 : A new America with new political parties: Greens, Labour, a new center-right and a new center- left . The GOP and Dems, to the Smithsonian in the mummy collection.

Lets do things right from the beginning : contributions for elections from business, prohibited, like in many countries.

[WorkingClass]

Thanks Ben. I keep shouting from the cheap seats that the time is now or will be soon for an American Labor Party. Mostly I am politely ignored.

[Diana]

Right-on to both of you!

[TheFriendlyAtheist]

Count me on board WorkingClass. The dems, including the president, have turned they backs on the working people of this country and I will never give them another dime. After a little more than 100 days it is already clear that we will not get meaningful healthcare reform, we will not get the employee free choice act, we will not get meaningful financial reform or any good ideas on how to keep our jobs from being shipped overseas. To hell with the dems and the repubs, we need a party in this country that really supports working people. If the last election was a reputiation of the last 30 years of conservative rule, then why is this administration just tinkering around the edges and leaving all the rest of the conservative agenda, that has brought our country to ruin, in place?

[WorkingClass]

WOW! Another one. Thanks Atheist. The American Labor Party. Has a nice ring I think.

[FoonTheElder]

The past decades have been the political equivalent of 'we did something except solve the problem'. The game in Washington is to pass laws that do not materially change the status quo and do not fix the problem. It allows the politicians to say to their constituents that they passed a bill to help at the same time their corporate masters know that they didn't change anything. Just a bunch of photo-ops and smiles.

Obama and all the health care special interests are forming one big happy family that promises to save a vague amount of money while somehow providing coverage to everyone. Of course, no one represents the average citizen in this happy family.

The proposed plans look a lot like the Mitt Romney Massachusetts fiasco. The result of that mess is that the insurance companies, drug companies and big hospitals are happy. They don't mention that Massachusetts now has the most expensive health care in the developed world. Taxpayers and small businesses get to pay to pad the profits of health insurers.

The U.S. currently pays twice as much per American for health care, than any other developed country in the world. Single payer can save $1 trillion per year, just by avoiding the waste and price gouging in our current system. The Obama/Special Interest plan just continues the waste and overcharging in an exchange for a promise from the special interests that they will cut costs. They cut costs by providing less service.

[DA12]

This basis of this post sounds like one of Frank Luntz's talking points from his memo on how to block health care reform.
http://wonkroom.thinkprogress.org/wp-content/uploads/2009/05/frank-luntz-the-language-of-healthcare-20091.pdf

[tompoe]

No moratorium on foreclosures, no jobs programs, no single payer healthcare. Sounds like we elected a member of the Party of Corporate Welfare, instead of a Democrat. Looks like 2012 is the year of the Green Party, the Independent Party, and the total rejection of Democrats/­Republican­s corporate welfare.

[Ben6768]

Yes tompoe, 2012 could be the year of new parties. In Italy in the 90s there was a popular uprising against politics as usual, and the three main parties that governed Italy since WW II, Democrazia Cristiana, the Socialist party and the Communist party dissapeared and it was no big deal.
More or less this is what happened in Italy, not entirely accurate.

A better U.S. would come out of a popular uprising to end GOP, Dems, and Big Money ruling America.
I´m not voting for either the GOP or Dems any more. I will vote for a different or new political party !!!

[GnomeDigest]

You aint kidding. No end to the War in Iraq. Escalating a war in Afghanistan and Pakistan with no achievable objectives. Continued enormous transfers of wealth from the middleclass to the uber-rich. What a pointless election that was.

[vippy]

Duped again, but this is the last time for me. We have but one party and they do a song and dance of differences just to extract more money out of our pockets. Remember Wexler's "impeach Bush
Program" asking for donations. Wondering where that money went LOL.

[GnomeDigest]

"Wondering where that money went LOL"

Probably the Bush Library. That seems like the sort of poetic irony the establishment is so good at.

[Liberal2]

Well duh. The problem is private financing of campaigns. That allows business and the wealthy to pick candidates at the local level, continue to help them at the state level, then at the federal level where there is more funding visibility, all candidates have long been bribed into obedient servants of big money.

We can't end legalized bribery by muttering about wanting something better on HuffPost. It's going to take multi-million man marchs in Washington and every legislator's local office. People with bullhorns, spoons beating on the bottom of pots, whistles, etc. Just like in some south American countries.

[Arthur954]

Ive already cast my review and Im not voting for Obama again.
I want someone that goes much further and will reduce the importance of the current health insurance cartels, not help them. We need a mandatory public system as an alternative

[John Graham]

"Public option"? I suppose you folks all just happened to miss the Social Security & Medicare Trustees' report today. There are only two types of health reform: those that increase individual choice and those that increase government power. Politicians who advocate the former can seize the initiative from the president. I wrote a short article on it, which you can see over at Facebook.

[Christian]

Wrong, I'm for a public option plan that the government runs at a 2% over head and doesn't have to pay dividends to investors and huge incomes and perks to management at a 25 % overhead cost. That is why so many are against a public option since it will cost less and drive the private for profit companies out of business or to drive their prices down and learn to live with less of our gold. You can still go buy your high priced policy if you want it and it give us real choice.

[ProudLiberalDan]

I cannot wait to CHOOSE a government plan so that I am no longer dependent on a particular job for health care.

No more being denied treatment so some CEO with bloated pay can receive an even bigger unearned bonus.

[leftLibertarian]

No more money to Wall Street Welfare Queens.