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Wendell Potter

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Who Is More Essential? You or Health Insurers?

Posted: 12/12/11 11:00 AM ET

The money that patients' rights advocates have to spend trying to convince the Obama administration that Americans should have decent health care benefits pales in comparison to the boatloads of cash insurers and their corporate allies have on hand to do largely the opposite. But at least the advocates are now in the game.

Last week a broad coalition of patient-focused groups launched its "I Am Essential" campaign in an effort to make sure that when all of us have to buy health insurance in 2014, we will be getting good value.

When Congress passed the Affordable Care Act last year, it included a provision requiring that all health insurance plans sold a little more than two years from now must contain "essential health benefits." It established 10 categories of required coverage: ambulatory patient services; emergency services; hospitalization; maternity and newborn care; mental health and substance use disorder services, including behavioral health treatment; prescription drugs; rehabilitative and habilitative services and devices; laboratory services; preventive and wellness services and chronic disease management and pediatric services, including oral and vision care.

The Department of Health and Human Services has the responsibility of determining, with input from the respected nonprofit Institute of Medicine, just how comprehensive the coverage will have to be in each of those categories.

Insurers and employers who offer coverage to workers have been lobbying both the IOM and HHS to make the coverage requirements as narrow as possible. They want to continue marketing plans with skimpy benefits because they are less costly to employers and potentially more profitable to insurers. The problem with that approach, of course, is that millions of Americans will be forced to the join the ranks of the underinsured -- already estimated at 30 million -- if coverage they must buy is inadequate to meet their needs.

That would not only be a nightmare for many American citizens but, I'm betting, for any politician who is on the record supporting "Obamacare." If people find out that the coverage they have to buy is of limited value to them when they get sick, they're not going to be very inclined to vote for Democrats come 2016, especially if insurance firms continue their long-running streak of record-setting profits.

I wrote last month that an insurance industry-backed group called the Essential Health Benefits Coalition had been formed to persuade Obama administration officials to consider "affordability" first and foremost -- not comprehensiveness -- as they flesh out the benefit requirements. As is typical of such industry groups, this one was set up and is being run out of a big PR firm, Ogilvy Washington. The budget for it is ample enough to pay the salary of its executive director and spokesman, Brendan Daly, a former aide to former House Speaker Nancy Pelosi.

In contrast, the "I Am Essential" coalition doesn't have a budget.

"Oh, no, no, we don't have any money at all," I was told by Carl Schmid, deputy executive director of The Aids Institute, one of the coalition members. "This is all pro bono."

Other members of the group, which last week sent a letter to HHS Secretary Kathleen Sebelius, include the Lupus Foundation of America, the Men's Health Network, Mental Health America, the National Association of Nutrition and Aging Services Programs and the National Minority Quality Forum. The only other action the coalition has taken so far is to send out a news release announcing the group and its letter to Sebelius.

The letter pointed out that the organizations comprising "I Am Essential" serve many of the nation's most vulnerable patient groups. "There are tens of millions of Americans who, like the people we advocate for, live with chronic disease and disability," they told Sebelius. "We are writing to urge you to make certain that the Essential Health Benefits package fully meets the needs of American health care consumers, particularly those who have chronic health conditions... A benefit package too narrowly drawn runs the risk of not adequately covering patient needs."

The group's letter came a few days after another group of patient advocates -- doctors and nurses -- sent a letter to Sebelius making the same plea. Sent by Physicians for a National Health Program, a group that supports a single-payer health care system for the U.S., the letter also blasted the IOM panel for siding with the insurers suggesting that HHS consider affordability first.

"We protest the Institute of Medicine's recommendation that cost rather than medical need be the basis for defining the 'essential benefits' that insurance policies must cover," the doctors and nurses wrote. "The IOM proposal would base the required coverage on the benefits typical of plans currently offered by small businesses -- enshrining these skimpy plans as the new standard. These bare-bones policies come with a long list of uncovered services and saddle enrollees with unaffordable co-payments and deductibles... If adopted by the Department of Health and Human Services, this recommendation will sacrifice many lives and cause much suffering. We call on Secretary Sebelius and President Obama to reject them."

The group went on to suggest that IOM recommendations would shift costs from corporate and government payers onto families already burdened by illness, a strategy it contends will not lower costs because it would result in patients delaying or foregoing needed care. "Delaying care often creates even higher costs," they wrote.

When HHS will make a decision is not clear, although there is speculation that the department might already have sent at least preliminary rules to the Office of Management and Budget to review. If that proves to be true, we probably will find out before the end of the year which coalitions -- those representing insurers and corporate America or those representing patients and consumers -- will have had the greatest influence on the administration.

 
 
 

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HUFFPOST SUPER USER
blueken
Finger Picking blues man
10:22 AM on 12/13/2011
I have been saving for retirement for the last 30 years. If I were to have a catasrophic illness my nest egg would vanish in months. Think about it. We are all in that boat. Take the profit out of illness. We all have a terminal illness. It is called old age, and we are going there one day at a time. As we age this mortal shell weakens. The odds turn against our remaining healthy. This is the human condition. I can guarentee you, when you need medical attention, you will pay what ever it takes to regain your health. The only thing that health care insurance companies do is pay bills, and come between you and your health care providers. They are parasites.
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papapj
..light as a feather..
09:10 AM on 12/13/2011
Profit and medicine should be mutually exclusive. The Hippocratic Oath demands it, and a civilized society cannot in all good conscience sanction it as we have done, much to our detriment.
08:31 AM on 12/13/2011
The insurers were unsuccessful in stopping the bill from passing, so they are going to sabotage its implementation. As long as corporate money floods US politics, nothing can stop the profiteering sharks.
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HUFFPOST COMMUNITY MODERATOR
Gudrun
My micro-bio is empty
12:10 PM on 12/13/2011
They need to be exposed to the light of day.
MHT73
words matter
07:39 AM on 12/13/2011
We need single payer, period.

First step, fully fund the VA healthcare system so that NO veteran is "prioritized" away, and all eligible family members are covered. Second step, instead of LIMITING Medicare, we should do the opposite, and drop the age of eligibility by five years every year. Let people continue to buy Medicare supplement insurance, if they want to.

Insurance companies exist to make a profit; they're part of the problem, not the solution.
General Washington
In the future, I return as Geddy Lee
04:58 AM on 12/13/2011
All anyone had to do to realize this situation might arise, was look to Massachusetts.

Where more people - percentage wise - with insurance can't afford health care, versus those without insurance (per a now deleted report from the State of Massachusetts itself), because the coverage basically doesn't cover a thing...
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Woodn88s
musician,furniture maker,left leaning middle
04:34 AM on 12/13/2011
Seems to me that I will be forced by law to pay $27 for an aspirin because the health care industry bought the rights to be the only source for aspirin.......................
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BOS29
We are many, they are few.
09:12 PM on 12/12/2011
Obamacare was a sellout to the health insurance industry. This will become very clear by 2016.
nothingchanges
too soon old, too late smart
08:47 PM on 12/12/2011
"Who Is More Essential? You or Health Insurers?"

To whom?

To Society at large?

Or to our bought and paid for 112th Congress?

IMPO...In order to fully understand the answer, you have to completely understand the question.
08:46 PM on 12/12/2011
This law defeats the purpose of insurance. Insurance is supposed to be something that people buy and pay premiums on in case they get sick. Now that insurance companies can't turn people away with pre-existing conditions, it has become a company that pays for all your medical needs whenever you need it. There is no way insurance companies can stay in business.
This user has chosen to opt out of the Badges program
08:55 PM on 12/12/2011
So you will be OK when an insurance company turns you away? Are you so naive that you actually think you'll never be sick enough to be turned down? Scary.
09:20 PM on 12/12/2011
I have healthcare, so if I get sick it covers me. I don't intend to drop it or do anything that makes my insurance company want to drop me. This law is a loophole for people who are too cheap the buy insurance before they get sick. Somehow medical care has become a right instead of a privilege. No doctor is required to treat you, and no insurance company is obligated to cover you. We need to stop the pattern of entitlement in this country.
Viper
Former repub, still repenting
10:43 PM on 12/12/2011
Atcaully you are very confused,. The purpose of insurance is a large risk pool. Where some pay more and some pay les , but everyone can afford and s covered.

I went 40 years w/o filling a claim, my insurance for me alone went to 17K per years.. all profts for the insurance company. Then I had a surgery, filed claims and was dropped so thye could keep all of those excess past profits...

You are in a risk pool of pone , when you are self insurfed or in a small business.

But if they went bankrupt, so be it.. they are not needed as the rest of the world has shown ,as medicare and the VA has shown..both with mcuh lower costs

Regards
This user has chosen to opt out of the Badges program
08:41 PM on 12/12/2011
I don't believe that there is a single living person who actually likes their existing health insurance. So if you are a Republican, it means you like it?
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HUFFPOST COMMUNITY MODERATOR
Dosadi
Political agnostic
08:17 PM on 12/12/2011
Another great article Mr. Potter. I believe you are on the verge of telling us all what we need to hear. "It is time to get rid of the middle man so we can take control of our health care costs."
07:27 PM on 12/12/2011
Each time I get another "This is not a bill" accompanied by information that generated by a computer that makes no sense on its face, I think there has to be a better way. Just think how much administrative costs could be reduced if statements and the like were processed efficiently. I believe we are focused on the wrong line items! Cutting the expensive "explanation of benefits" would be an excellent start -- there is no "explanation" when only the industry has access to the rules and their meaning.
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HUFFPOST COMMUNITY MODERATOR
motoGpifupleez
watching with amusement
06:42 PM on 12/12/2011
'Deadly Spin' should be required reading for every person in America.
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HUFFPOST SUPER USER
jamsb3
06:23 PM on 12/12/2011
We love Barack, we remain sentinent cucumbers. Obama; "I don't wanna learn how to play game better. I want to put an end to the game playing."

Google Billy Tauzin, healthcare, America. We are family.

It is impossibe to be elected without compromising your soul.
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HUFFPOST SUPER USER
Rex Devious
If you don't vote, don't bitch
06:17 PM on 12/12/2011
You know, I almost wouldn't mind health insurance companies dipping their beak into the medical process at the rate several times what the actual cost would be - if it weren't for them *also* being allowed to alter or outright deny a patient receiving the care their doctor knows they need.

At this point, the only functions doctors serve in the US is to identity to a health insurance company the *one* course of treatment they will be trying to prevent a patient from receiving.
Viper
Former repub, still repenting
10:46 PM on 12/12/2011
And all checks up do , is notify the insurane company of a pre existing condition so they can tripple your rates or drop you.. thats helathcare LOL.. And of course being a woman or getting older are pre existing conditions

Regards
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HUFFPOST SUPER USER
Biff Riff
We're all here because, we're not all there!
07:09 AM on 12/13/2011
No. That's not health care. That's health insurance.