The view from here

You want reform? Then the time has come to drive a stake through the heart of the for-profit insurance industry and replace this merciless, cruel and anti-American beast with a taxpayer funded single-payer system.

And if you don't believe me, maybe you'd like to take a look at what Paul Krugman has to say about our imploding system.

Go to the link I've provided and you can read his entire column for free.

Universal health care, much as we need it, won’t happen until there’s a change of management in the White House. In the meantime, however, Congress can take an important step toward making our health care system less wasteful, by fixing the Medicare Middleman Multiplication Act of 2003.

Officially, of course, it was the Medicare Modernization Act. But as we learned during the debate over Social Security, in Bushspeak "modernize" is a synonym for "privatize." And one of the main features of the legislation was an effort to bring private-sector fragmentation and inefficiency to one of America’s most important public programs.
http://www.dohiyimir.org/...

His reference to the private-sector is a polite euphemism for the for-profit U.S. insurance industry. The for-profit insurance industry is the crown jewel of the U.S. health care system. And never forget that every dollar they spend on your health care goes against their corporate bottom line.

Let me explain again that paying your health care bills is bad, very bad indeed for the financial health of the insurance industry. And therein lies the blood curdling reality.

Back to Krugman.

The process actually started in the 1990s, when Medicare began allowing recipients to replace traditional Medicare — in which the government pays doctors and hospitals — with private managed-care plans, in which the government pays a fee to an H.M.O. The magic of the marketplace was supposed to cut Medicare’s costs.

The plan backfired. H.M.O.’s received fees reflecting the medical costs of the average Medicare recipient, but to maximize profits they selectively enrolled only healthier seniors, leaving sicker, more expensive people in traditional Medicare. Once Medicare became aware of this cream-skimming and started adjusting payments to reflect beneficiaries’ health, the H.M.O.’s began dropping out: their extra layer of bureaucracy meant that they had higher costs than traditional Medicare and couldn’t compete on a financially fair basis.

Now if you're wondering why your mother, father, grandmother or grandfather was shoehorned into a plan which is cynically named Medicare Advantage, it's because the scum Congress which passed the vile Medicare D legislation (of which Tommy Thompson says he's so darn proud) made certain that there were big bucks for the for-profit insurance industry. Here's what Krugman has to say.

That should have been the end of the story. But for the Bush administration and its Congressional allies, privatization isn’t a way to deliver better government services — it’s an end in itself. So the 2003 legislation increased payments to Medicare-supported H.M.O.’s, which were renamed Medicare Advantage plans. These plans are now heavily subsidized.

According to the Medicare Payment Advisory Commission, an independent federal body that advises Congress on Medicare issues, Medicare Advantage now costs 11 percent more per beneficiary than traditional Medicare. According to the Commonwealth Fund, which has a similar estimate of the excess cost, the subsidy to private H.M.O.’s cost Medicare $5.4 billion in 2005.

Enough on Medicare D.

Let's move onto the health care reform being championed by the Republican governor of California. Again, don't take my word for anything. Take a look at this brave and brilliant op-ed which was in the Los Angeles Times yesterday.

WHEN Gov. Arnold Schwarzenegger, on crutches, unveils his expected grand redesign of the state's health insurance system Monday, he must tackle the biggest obstacle to insuring the uninsured: insurance companies.
The governor said recently that California's high number of uninsured residents — about one in five — acts as a hidden tax on the insured by forcing them to pay higher premiums, deductibles and co-pays. He has strongly hinted that he favors a system requiring individuals to buy health insurance, as well as assuring coverage for all children in the state (who constitute about 12% of the uninsured).

But he's said nothing about reforming insurance companies or HMOs.

http://www.latimes.com/...

This is the truth you must understand. Everywhere you look, all you see when the subject of health care reform is discussed is, in reality, more of the same. It's all about maintaining the status quo of the for-profit insurance industry. And what does this mean for you and me? More of the same too, delay, deny and deceive.

Delay and deny us lifesaving health care, delay and deny us and our health care providers payment for services rendered. Deceive us about everything: Trial lawyers are responsible for spiraling health care costs (Wrong!); Health savings accounts are good for you and me (Wrong!)

Schwarzenegger's experience with health insurers is not your average citizen's. Anyone as rich as he is doesn't have to worry about medical expenses. He and his surgeon surely didn't have to seek permission for treatment. They didn't have to argue with a cost-control center demanding something cheaper — such as outpatient surgery. The governor won't fear that his insurer will retroactively cancel his policy or double his premiums because of the surgery.

Not only is Schwarzenegger immune to most people's struggles with insurers, he's also enjoyed nearly $1 million in direct political contributions from them, according to public contribution reports.

It is this political relationship that should worry Californians hoping for real health care reform. Insurance companies, after all, will spend whatever it takes and call in every favor they're owed to stop reforms that restrict their profits, curb their extravagant overhead or limit what they can pay their chief executives.

The money paragraph from the L.A. Times.

California insurers won't like these proposals, and won't be shy in reminding the governor and Legislature about favors owed. Whether our elected officials respond to the desires of insurers or the needs of California will determine everything about health care reform.

Will Democrats stand up for the American people or their insuance industry patrons?

It's become almost oxymoronic. As the guy said: "I don't mind paying a doctor, but I don't understand why I have to pay an investor every time I get sick."

Labels: insurance