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With the introduction of the House bill on health care reform on earlier today, announcing that a public option was included, you would think Americans should be elated. Now we are going to get choice and competition so that every single American can access and afford health care. Health care as a right has finally arrived. But – - – hold on horsey. With its 1,990 page tome (my computer “crashed and burned” trying to open the document let alone trying to print it out), the House has sold the concept of health care for all down the river. Let me explain.
Because it won’t take effect until 2013, the bill allows insurance companies to undertake a strategy one of my colleagues now calls “preemptive gouging”. Before such a plan takes effect, the insurance industry will jack up rates and premium costs in order to recoup revenues that may be lost from the day the legislation takes effect. But 36 months seems like a good period to nail all Americans with unimaginable rate hikes. If you don’t believe me, open your mail this Fall to find your annual health insurance renewal notice. Another of my colleagues, a highly successful Chicagoland area small business owner in the catering business with 12 employees just received a 47% increase in premiums over last year. Yes, you are reading me right – - – a 47% rate hike! And when he did further investigating how he could lower his premium, he was told – - – go hire younger and healthier workers. What bunk. We must now DEMAND THAT ANY HEALTH CARE REFORM INCLUDES IN IT LANGUAGE THAT BARS INSURANCE COMPANIES FROM PREEMPTIVE GOUGING.
Next, the new house bill mandates coverage for 30+ million more Americans. Hooray, right? Nope. Insurance executives must be licking their chops, knowing that they will insure millions more Americans, and, with them, collecting millions (billions?) more in premium revenues.
The type of public option created is one where rates will be negotiated, just like in the private markets. This option will cost $85 billion more than what had been seen as the most cost effective plan in either Congressional chamber, a Medicare reimbursement schedule + 5%. So, will we have true choice and competition that drives down the cost of premiums? No way.
What about the new insurance regulations, like no more worry over pre-existing conditions to bar coverage? Great news, huh? Wrong again, at least in the near term. You see, it is one of the pieces of the House plan that doesn’t take effect until 2013?
The House bill includes lifting the antitrust exemption, but with the public option looking just like a private market offering, lifting this exemption will have the look of Swiss cheese- – - – full of holes.
And, just how many millions of Americans can get coverage if they are not satisfied with what they have got. Even though there will be an insurance exchange mechanism, not as many as you think.
In the end, we Americans have, at least to date, been snookered. Maybe you like the word, “hoodwinked”. Particularly for those of us who thought Obama was a change maker. (Speaking of Obama, where has he been up to now)? Whatever adjective you would like to use, what has come out of the House isn’t health care reform but the insurance industry full employment act. With health care, however, it can no longer be business as usual where big business buys and sells politicians. Remember the movie, “Network”, where the memorable line was, “I’m mad as hell and I am not going to take this any longer”. Well, to all those reading this post, if you are not mad as hell by now with what came out from the House today, you damn well should be; for starters, start flooding your representatives with calls telling them to do the people’s business of ensuring health care for all immediately upon passage of any legislation into law; and to not do the business of corporations – - – making money regardless of whether or not all citizens can afford and access quality health care.
The New House Health Care Reform Bill: “Preemptive Gouging” and Other Failures |
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| By: milesz Thursday October 29, 2009 7:38 pm | |
7 Comments
Thanks Milesz. I think you’re right. We’re seeing this with credit card companies, and now we’ll see it with the industry. When Congress doesn’t put something into effect immediately there’s gouging.
We’ve just got to quit fooling around with people who can’t deliver anymore. I think we need a new Party.
I could not agree with you more, and it seems that those who want to become politicians could out of the same “glue factory”.
What Baucus rolled out was referred to as the Insurance Industry Profit and Enhancement Act. The best Pelosi, with all due respect, has been able to do isn’t much better.
Re the type of po, I totally understand the anger of people like Rep. Kucinich and Rep. Weiner.
And re the delay, Howard Dean on TRMS was very correct to say that if the benefits of real health care reform were to be put into effect immediately, the debate over health care reform would be over and Democrats would score big time electorally come Nov 2010.
Not much about the way this bill has been drafted makes sense.
But as you point out, millions of Americans are about to be hit by their private insurers’ preemptive gouging. Maybe that’s a good thing. And the sooner the better. Let the private insurers overreach again like they did a couple of weeks ago when they started mouthing their threats. If the hikes start immediately, this fall, then the pressure that we’ve been applying is nothing compared to the public outcry that will definitely follow such blatantly abusive practices.
We all need to speak up, and speak up LOUDLY, like you have done with your response here.
If people get mad enough, and campaign to put these vultures out of business maybe we’d we be able to get Medicare for All. Have you seen the California Nurses’ Association Econometric study forecasting 2.5 million new jobs, if we shifted to national health insurance?
I wrote my reps (as if it will do any good)and loudly said to vote this bill down.You are correct this bill gives the insurance companies more money and gives the consumers the shaft once again.Yesterday I received a DNC survey on rating Obama on different issues, including health care. I was furious and wrote a letter on what I thought of his positions so far.I taped a penny to the letter and informed them that is my last contribution.This bill is to continue to line the pockets of the of the insurance companies.That is exactly what the stimulus bill did.He could of given $25,000 to everyone of us to build the economy and pay our huge insurance bills. Obama gives great speeches but you have to believe in what comes out of your mouth.We all did,apparently he did not. No bill unless it is a single payer system!!!
What if:
We stopped paying those huge premiums and just showed up at the E.R or better yet took the money we would be saving and went to other countries for our health issues? (not a long flight)
What if:
We pulled all our money out of the banks “that are too big to fail” and put our money into credit unions and community banks?
What if:
We stopped using these plastic credit cards and started using “CASH”
What if:
We only bought products made and manufactured in the U.S ?
I know this Can be done I am married to someone 26 yrs.who buys ONLY
American made.Believe me it can get difficult but he does it.
We have to say enough is enough!!! We,yes the middle class have more power then we think.We can go down with the sinking ship or start creating our own way to survive. Let’s start fighting back….These companies are making money off of us.
What if:
Everyone banded to together and did not pay our taxes? There have to be some good legal minds out their who could rake through the tax codes and find the line that says we have the RIGHT to decide if the government is
using our funds properly.They line the pockets of the middle east for leverage and no one speaks up.While our people lose their homes and jobs.
Our hard earned dollars are spent in the middle east on a pipe dream.
What if:
The streets were full of war protesters like back in the 60′s.We seemed to care more about our friends and family being senselessly killed then.
In my profession I hear alot of complaining about what is happening, especially with health care. We all seemed to have been beaten down and
everyone just goes along.If we continue we will have no middle class.
Let’s take a stand this is our country, this is our childrens future.
Together we can bring them down.It’s time to get rid of those people who are not representing us in the senate. We need a new party of middle class candidates who won’t sell us out, who make a stand and refuse to be bought.