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Lies, Damned Lies and a Health Insurance Industry Report Condemning Reform

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by Mike Hall, Oct 13, 2009

With the prospect of  Congress passing health care reform legislation becoming more likely each day, the nation’s health insurance industry has launched a new scare campaign to torpedo reform. Ironically, in doing so, Big Health Insurers also have shown why a public health insurance plan option is vital to real health care reform.

The insurance industry trade lobby, America’s Health Insurance Plans (AHIP) just released a report that claims the Senate Finance Committee’s version of  health care reform legislation would raise average family premiums to $21,300. The report makes clear that the insurance industry will not lower health care costs on its own. Rose Ann DeMoro, executive director of the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC), called the report

an outrageous threat by one of the richest industries in America….Our legislators should respond to this bullying and stop coddling a useless industry whose sole function is to make enormous profits from the pain and suffering of patients while providing little in return.

Sen. Jay Rockefeller (D-W.Va.), a member of the Finance Committee, told Politico:

The misleading and harmful claims made by the profit-driven insurance companies are politicking for corporate gain at its worst….Their recent statements only further highlight that our focus here in Congress must be on the inclusion of a public health insurance option in the marketplace to protect families and put more money back in their wallets by creating greater competition and driving down costs.

Washington Post economics columnist Ezra Klein says the so-called “analysis” follows in the “hallowed” tradition of the tobacco and energy industries.

The health insurance industry has commissioned a report projecting doom and despair for those who seek to reform its business practices.

For months, AHIP has “played nice” with the Obama administration, claiming it was willing to work with the White House and Congress to achieve health care reform. The new attack targets what most health care reform advocates consider the weaker and less comprehensive version of health care reform and shows, says Klein,

the insurance industry is getting scared. After many months of quiet constructiveness, they’re launching a broadside on the week of the Senate Finance Committee’s vote….It should not be treated as policy document. It’s a political document…the insurers assail policies they don’t like…under the guise of concerning themselves with consumer premiums.

On AlterNET, Digby says that if AHIP is able to block health care reform, families will foot the bill.

They will raise premiums sky high even if reforms don’t pass. They always have before….There has never been a better argument for the public plan than the one the insurance company just handed the Democrats in Congress. They have produced a shoddy, self-serving report as a blatant threat to raise premiums higher than they already plan to raise them. If there has ever been a more obvious case of bad faith than this, I haven’t seen it. The only thing that will keep these corporate criminals in line is either price controls or stiff competition.

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6 Comments

  1. Sea Star on 13.10.2009 at 13:12 (Reply)

    Until we ALL form a coalition and storm both the insurance companies AND our local civil servants offices until they provide Medicare for All, we are going to lose big time.

    Our government serves for the corporate state not our welfare and we are going to either live with that or take it back from them.

    There are mobilizations going on but few arrests and even fewer showing up to support their getting arrested.

    It’s up to each individual’s level of morality and courage.

    1. KayTillow on 14.10.2009 at 09:18 (Reply)

      The most meaningful action that our unions can take right now is to push for the Weiner HR 676 Single Payer Amendment. It will come to the floor of the House soon. Call your Congressperson and urge him or her to vote YES. Capitol switchboard: (202) 225-3121.

      Workers, our unions, and the nation need this bold and brave solution–national single payer, Expanded and Improved Medicare for All. Our unions must take the lead.

      unionsforsinglepayer.org

  2. ClarkWALabor on 13.10.2009 at 14:04 (Reply)

    All the more reason to have single payer and just outlaw these immoral insurance companies.

  3. Healthcare4U on 13.10.2009 at 16:33 (Reply)

    This debate is only about one thing it is the REGULATION of the healthcare industry. Lobbyists have spent millions of our dollars on politicians to demonize the role of government in healthcare. The facts are clear, in Cosmetic and Lasik surgery competition works because you make the decision to buy and you have information to select the best value and quality.
    If you go to the ER with palpitations physicians decide what you need and when and where you will be treated. The first thing you know about the cost is when you receive the many bills. You are charged whatever the physician and hospital think they can get away with to ensure their profitability.
    Every other major country realizes this is a seller driven demand not consumer driven. They regulate physician and hospital participation in their universal HC System and prices to stop the kind of predatory practices that we have. If we are too stupid not to regulate HC then we deserve this mess - Regulate Healthcare.

  4. Ron on 13.10.2009 at 20:54 (Reply)

    I do not understand why the AFL-CIO supports a public option for those who do not have health insurance, but lobbies against legislation that will make the public option an available choice to everyone, including those who have employer-sponsored health insurance. By failing to support choice for all, we end up in bed with the insurance industry and are complicit in perpetuating a system in which the odds are stacked up against true reform.

  5. Downtown Dan on 14.10.2009 at 10:09 (Reply)

    The insurance companies just are doing what they always do - raise rates. Here is the heart of the matter - where is the legislation that will curb the obscene profiteering and tax gouging that has made the entire debate a sham?

    - Set a cap on profits, 10% is reasonable.
    - No tax whatsoever on any pre-profit investment in facilities, equipment, etc. . This includes state & local sales taxes.
    - Deport any illegal aliens even if their children were born here, then let them apply for entrance legally. NO MORE AMNESTIES! NO MORE SUCKING UP JOBS AND WORKING FOR LESS $$.
    - Out politicians like Baccus who are bought and paid for tools of the insurance lobby.
    - Take the abusive tax credits and corporate subsidies away and put that money into tax payer health care credits and subsidies on a sliding scale at 3x the poverty level.

    I could go on & on but that’s a good start.

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