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Massachusetts Union Members to Insurance Industry: Don’t Derail Health Care Reform |
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More than 300 union activists surrounded the office of the Massachusetts Association of Health Plans (MAHP), in downtown Boston yesterday, to protest the insurance industry’s tactics in opposing national health care reform.
MAHP and other industry groups, such as America’s Health Insurance Plans (AHIP), have mounted a multimillion-dollar campaign of TV and radio ads, phony town hall meetings and lobbying to scuttle comprehensive health care reform. Says Rich Rogers, executive secretary of the Greater Boston Labor Council:
We sent a strong message today in Boston that we can’t allow the insurance industry to derail reform. It is time to stand up to the insurance companies and show them that we mean business.
The insurance industry’s main targets are heath care reform that includes a public health insurance option and curbs on the industry’s abusive practices that deny people needed care. A public plan option would allow workers and their families who either have private insurance coverage or no coverage at all to choose between private insurance or a public plan with a package of comprehensive benefits.
Just last week, a former insurance executive outlined how insurance companies look for any reason to deny a claim or cancel a person’s policy when they make major claims.
Jeff Crosby, president of the North Shore Labor Council, told rally participants that the pharmaceutical giants “bleed the system at a rate of profit twice that of most other industries,” and the insurance companies must be stopped from killing real reform.
We can’t leave health care to people to whom it is just another business to make money. These health insurance companies are not health care providers, they are in the business of health care. It would be easier if there was a short cut, if we didn’t have to take on several of the most powerful industries in the country at once.
The rally was co-sponsored by the Greater Boston Labor Council, the North Shore Labor Council, AFT Massachusetts, the SEIU Massachusetts State Council, the Boston Building Trades Council and others.
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And Congress is comfortable negotiating with these maggots of profit, are WE going to get a good deal?
EVER WONDER WHY YOU HAVE TO FIGHT
SO HARD WITH YOUR INSURANCE COMPANY TO GET
THE CARE YOU NEED? . . .
Health insurance is big business.
The companies make huge profits and their CEOs make
millions, while the rest of us, employers and workers alike, face
skyrocketing healthcare costs, impossible bureaucracy, and life-
threatening denials.
COMPANY Headquarters 2007 PROFITS*
Aetna Inc. Hartford, CT $ 1.831 BILLION
CIGNA Corp. Philadelphia, PA $ 1.115 BILLION
Coventry Health Care
*owns Altius, Carelink, Group Health Plan,
HealthAmerica, OmniCare, WellPath, others
Bethesda, MD $ 626 million
Health Net Woodland Hills, CA $ 194 million
Humana Inc. Louisville, KY $ 834 million
UnitedHealth Group
* owns owns Oxford, PacifiCare, IBA, AmeriChoice,
Evercare, Ovations, MAMSI and Ingenix, a
healthcare data company
Minnetonka, MN $ 4.654 BILLION
WellPoint
* owns Blues across the US, including Anthem
Blue Cross Blue Shield, Blue Cross Blue Shield of
Georgia, Blue Cross Blue Shield of Wisconsin,
Empire HealthChoice Assurance, Healthy Alliance,
and many others
Indianapolis, IN $ 3.345 BILLION
* http://www.insurancecompanyrules.org/learn_more/the_roster/
Supporting Notes and References:
1. Aetna: In 2007, Aetna applauded itself for its low “medical loss ratio”–the percentage of revenue it “loses” to paying for health care. (Sensitive to public relations, the industry now calls this a “medical benefit ratio.”). Aetna spends less than 80 percent of premiums on health care by avoiding unhealthy enrollees and keeping a lid on services. http://seekingalpha.com/article/63682-aetna-inc-q4-2007-earnings-call-transcript (February 7, 2008)
2. CIGNA: a multinational business, CIGNA picked up its Starbridge products when it purchased StarHRG from HealthMarkets in 2006. HealthMarkets’ MEGA Life and Health, which targets the self-employed, has been investigated across the country for shady sales practices and shoddy coverage.
http://www.insurancecompanyrules.org/learn_more/the_roster/
3. Coventry: subsidiaries include: Altius, Carelink, Group Health Plan, HealthAmerica, OmniCare, WellPath, and others.
4. HealthNet: Health Net made the news by giving large bonuses to employees for canceling policies. Los Angeles Times, Health insurer tied bonuses to dropping sick policyholders, November 9, 2007:
http://www.latimes.com/business/la-fi-
nsure9nov09,0,4409342.story
5. Humana: Humana’s a big player in the privatized portion of Medicare. In 2007, Humana was accused of “bait and switch” tactics—luring seniors into a Medicare prescription drug plan by offering low premiums one year, then jacking them up the next. –The Boston Globe, January 3, 2007:
http://www.boston.com/business/healthcare/articles/2007/01/03/menino_calls_for_humana_inquiry/
In May 2007, according to The New York Times: “In the first major investigation of Medicare marketing, the Oklahoma insurance commissioner has documented widespread misconduct by agents working for Humana.” Investigators found signs that agents had used “bait and switch tactics to secure the initial invitation” into Medicare beneficiaries’ homes. The state fined Humana half a million dollars for “using unlicensed agents” and,
in some cases, “misleading marketing practices and misrepresentations.” –The New York Times, May 15,2007: http://www.nytimes.com/2007/05/15/washington/15medicare.html?_r=3&adxnnl=1&oref=slogin&ad
xnnlx=1179231206-TRT2tWRts1oPzIUlIXb3iQ&oref=slogin&oref=slogin
6. UnitedHealth: also owns Oxford, PacifiCare, IBA, AmeriChoice, Evercare, Ovations, MAMSI. UnitedHealth also owns Ingenix, a health care data company, and other health-care related
businesses.
In 2006, UnitedHealth’s then-CEO, William McGuire, was fingered in a stock options scandal. Though he ultimately returned $620 million, he managed to keep $800 million. Stephen Hemsley, who joined UnitedHealth from Arthur Andersen, the accounting firm that closed shop in the wake of the Enron scandal, became CEO. “A court filing says UnitedHealth Group chief Stephen Hemsley had more involvement in options backdating than
had been revealed in earlier investigations.” –Star Tribune (Minneapolis-St Paul), May 22, 2008:
http://www.startribune.com/business/19196249.html?location_refer=Your+Money
The New York State Attorney General, Andrew Cuomo, stated, “We believe there was an industry-wide scheme
perpetuated by some of the nation’s largest health insurers to deceive and defraud consumers.” Mr Cuomo is
suing the company for systematically forcing patients to pay more than they should when using doctors and
hospitals outside their insurer’s networks. –The New York Times, February 14, 2008:
http://www.nytimes.com/2008/02/14/business/14health.html?ei=5088&en=5536a581a8ba6d03&ex=136064520
0&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1214927387-PYqRek14Cv9H4h8Oo9uqrA
7. WellPoint: WellPoint, the country’s biggest health insurance company, has Blue plans all over the country, most operating as Anthem Blue Cross Blue Shield. Just a few other holdings include: Blue Cross Blue Shield of Georgia, Blue Cross Blue Shield of Wisconsin, Empire HealthChoice Assurance, and Healthy Alliance.
The company’s Chief Financial Officer, Wayne DeVeydt, reiterated this point. “I want you to know that we remain very disciplined in our underwriting approach and do not pursue business that we believe is priced below our profitability targets.” http://seekingalpha.com/article/73633-wellpoint-inc-q1-2008-earnings-call-transcript
(April 23, 2008)
FOR MORE INFORMATION, SEE: http://www.pnhp.org/
and http://www.insurancecompanyrules.org/learn_more/the_roster/
House Committee Rejects Closing Health Coverage Loophole for Illegal Aliens
During consideration of the health care reform bill (H.R. 3200), the House Ways & Means Committee rejected an amendment that would have helped ensure illegal aliens would not receive taxpayer-funded health care benefits.
The amendment, offered by Rep. Dean Heller (R-NV), would have required the government to verify that enrollees in the “public plan” and applicants for “affordability credits” are not illegal aliens. Eligibility verification would have been determined by using existing databases — the Income and Eligibility Verification System (IEVS) and the Systematic Alien Verification for Entitlements (SAVE) system. (Congressional Quarterly, July 16, 2009; See also FAIR’s Press Release, July 22, 2009). The Heller amendment would have addressed many of the same concerns that FAIR raised last week about whether illegal aliens would be able to receive taxpayer-funded health care benefits. (See FAIR’s Legislative Update, July 20, 2009). Speaking in support of his amendment, Congressman Heller stated: “Requiring citizenship verification for enrollment would ensure only citizens and legal residents receive taxpayer funded healthcare.” (Representative Heller’s Press Release, July 16, 2009).
Opponents suggested that Heller’s amendment was unnecessary because Section 246 of the bill states: “Nothing … shall allow Federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States.” (Legislative Text, Section 246). Critics of this language correctly point out that: (1) Section 246 only applies to affordability credits, which are the subsidies to help people pay for enrolling in a private health insurance plan, but will not prevent illegal aliens from enrolling in the government-run, taxpayer financed public option health plan; and (2) with respect to enrollment in private health insurance plans, Section 246 does not contain any meaningful verification procedures to ensure that illegal aliens do not receive subsidies paid for by American taxpayers. Accordingly, although the bill contains a provision limiting eligibility for the affordability credit to those legally present, it is limited in scope and virtually meaningless in effect. Unfortunately, despite the merits of the Heller Amendment, the House Ways and Means Committee rejected it on a party-line vote, with 15 Republicans supporting and 26 Democrats opposing the amendment. (For a list of the members opposing the Heller Amendment, see FAIR’s Action Alert).
This may be exactly what the illegal alien lobby is looking for. In late June, the National Council of La Raza issued a statement demanding that Congress give illegal aliens taxpayer-funded health care under this bill. (See FAIR’s Legislative Update, June 22, 2009). This week, the Congressional Hispanic Caucus (CHC) also urged Speaker Pelosi to ensure that illegal aliens are covered by the health care reform bill. (Roll Call, July 24, 2009). According to a CHC member, the organization’s leaders are not asking Speaker Pelosi to “specifically spell something out” in the bill, but instead to seek to ensure that the bill does not actually prohibit illegal aliens from receiving benefits. “We’re pushing to include everyone in the health care bill. Everyone,” the CHC member who asked not to be identified said. “Sometimes if you don’t say something, something happens.” (Id.).
The health care legislation is now expected to move to the House Energy and Commerce Committee before it moves to the full House of Representatives.
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Amnesty and Joblessness (PDF)
http://www.fairus.org/site/DocServer/amnesty_joblessness.pdf?docID=%202701
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fairus.org
House Committee Rejects Closing Health Coverage Loophole for Illegal Aliens
http://www.fairus.org/site/News2?page=NewsArticle&id=21085&security=1601&news_iv_ctrl=1721#1
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Amnesty and Joblessness (PDF)
http://www.fairus.org/site/DocServer/amnesty_joblessness.pdf?docID=%202701