How a Few Private Health Insurers Are on the Way to Controlling Health Care (R. Reich)

[Mass]

http://robertreich.blogspot.com/2009/12/how-few-private-health-insurers-are-on.html

How a Few Private Health Insurers Are on the Way to Controlling Health Care

The public option is dead, killed by a handful of senators from small states who are mostly bought off by Big Insurance and Big Pharma or intimidated by these industries' deep pockets and power to run political ads against them. Some might say it's no great loss at this point because the Senate bill Harry Reid came up with contained a public option available only to 4 million people, which would have been far too small to exert any competitive pressure on private insurers anyway.

To provide political cover to senators who want to tell their constituents that the intent behind a robust public option lives on, the emerging Senate bill makes Medicare available to younger folk (age 55), and lets people who aren't covered by their employers buy in to a system that's similar to the plan that federal employees now have, where the federal government's Office of Personnel Management selects from among private insurers.

But we still end up with a system that's based on private insurers that have no incentive whatsoever to control their costs or the costs of pharmaceutical companies and medical providers. If you think the federal employee benefit plan is an answer to this, think again. Its premiums increased nearly 9 percent this year. And if you think an expanded Medicare is the answer, you're smoking medical marijuana. The Senate bill allows an independent commission to hold back Medicare costs only if Medicare spending is rising faster than total health spending. So if health spending is soaring because private insurers have no incentive to control it, we're all out of luck. Medicare explodes as well.

...

From the start, opponents of the public option have wanted to portray it as big government preying upon the market, and private insurers as the embodiment of the market. But it's just the reverse. Private insurers are exempt from competition. As a result, they are becoming ever more powerful. And it's not just their economic power that's worrying. It's also their political power, as we've learned over the last ten months. Economic and political power is a potent combination. Without some mechanism forcing private insurers to compete, we're going to end up with a national health care system that's controlled by a handful of very large corporations accountable neither to American voters nor to the market.

[Armstead]

1. BINGO -- K&R

[liberal N proud]

2. The sad state of America

I was in a conference last week, there were people from all over the world in attendance. One of the topics of discussion was the difference in labor cost in the US vs. everywhere.

When the moderator mentioned health care cost as a reason cost were so high in the US, there were a few from some Europe and Australia that simply didn't understand what was wrong with America that we have not figured this out.

America is and will continue to be held hostage by health care cost.

[havocmom]

4. And the idiot Chamber of Commerce continues to fight the one thing that might save US businesses

It's a class thing. The class that's got is made up of too many who simply do not want to let workers have anything. They are so blinded by greed and class hatred that they can't see they have killed the goose that lays their golden eggs.

[abelenkpe]

5. The cost cripples small business in the US

making it difficult to compete with businesses in other countries. If we are going to support a global marketplace we need to make sure our businesses can compete. Unfortunately it seems that our gov has forgotten not only the individual but also small business in favor of supporting multi-national corporations and financial companies (including insurance.)

[sandnsea]

3. They also have their foot in the Medicare door

So adding people to the program, and reguiring them to pay the full premium, will really only put more money into the pockets of insurance companies. These people won't even have a subsidy. This is ridiculous.

[truedelphi]

14. they do have their foot in the door and it really is ridiculous. n/t

[Vinnie From Indy]

6. What is remarkable is that Dems & GOP'ers in Congress think we will not notice

Pain sharpens the mind's focus and as more millions of Americans struggle simply to house and feed their families, I think they will realize quite quickly they were shafted once again.

[glitch]

8. I don't think they care one way or another, they appear to think they have a lock on the systems

which elect them: media, finance, voting.

[inna]

7. Why in the WORLD are private insurers exempt from competition??

It doesn't make any sense at all, whatsoever. Seriously, can someone explain what's the logic behind that?? So they can screw the American people even more efficiently??

It's just obscene. The congress is full of sell outs and crooks. :banghead:

[wowimthere]

9. they see it as... don't unsettle the status quo apple cart too much. There's your bone people

[slipslidingaway]

10. knr nt

[leftstreet]

11. At least they'll be Too Big to Fail

Bubble > Bailout...

[ProgressOnTheMove]

12. That doesn't wound good, we'll work on it we have no alternative but to really. Just too many ...

corporate Democrats for now. That can change if we push, they feel if we're demoralized we won't resist that is where have to prove that theory wrong. It all comes down to more activism in the states where we have the yet to be persuaded Democratic Senators. The expansion of medicare is a success which mean is possible to make more. Everyone gets tired of nagging in the end even undecided Senators..

[solidtimberfloor]

13. hi

the nation needs your help

[soarsboard2]

15. There is an Ammedment

that does away with anti-trust exemptions.

It needs to be passed

[Piewhacket]

16. Is the antitrust exemption being removed??

[bertman]

17. ". . . we're going to end up with a national health care system that's controlled by a

handful of very large corporations accountable neither to American voters nor to the market."

GOING TO UP WITH??

More like ALREADY HAVE that system.

Recommend.

[defendandprotect]

18. k i c k

[IndianaGreen]

19. K&R

Kick to your kick

:kick: