This is not real health care reform

Howard Dean on what pretends to be "health care reform":

Real reform would significantly lower costs, improve the delivery of health care and give all Americans a meaningful choice of coverage. The current Senate bill accomplishes none of these. Real health-care reform is supposed to eliminate discrimination based on preexisting conditions. But the legislation allows insurance companies to charge older Americans up to three times as much as younger Americans, pricing them out of coverage. The bill was supposed to give Americans choices about what kind of system they wanted to enroll in. Instead, it fines Americans if they do not sign up with an insurance company, which may take up to 30 percent of your premium dollars and spend it on CEO salaries -- in the range of $20 million a year -- and on return on equity for the company's shareholders. Few Americans will see any benefit until 2014, by which time premiums are likely to have doubled. In short, the winners in this bill are insurance companies; the American taxpayer is about to be fleeced with a bailout in a situation that dwarfs even what happened at AIG.
I entirely agree with Dean. I would like to tear up the current proposals and start over. I'd do it in two steps. First, quickly pass a bill with all of the low-hanging fruit, to get them out of the way: for example, requiring portability and prohibiting rejection of new customers based on pre-existing conditions. Only then, proceed with the brunt of the program. Let the expensive part of the program live or die on its own merits. Undistracted by the low-hanging fruit, we can better evaluate how much the new program would cost and what the tax-payers would get for their money.

Continue ReadingThis is not real health care reform

Cap the profits of health care insurers.

Former CIGNA executive Wendell Potter reports that in the early 1990s health insurance companies devoted more than 95% of every premium dollar to paying doctors and hospitals to reimburse them for health care provided to insurers. Things have changed:

Today, insurers only pay about 81 cents of each premium dollar on actual medical care. The rest is consumed by rising profits, grotesque executive salaries, huge administrative expenses, the cost of weeding out people with pre-existing conditions and claims review designed to wear out patients with denials and disapprovals of the care they need the most.
They keep profits high by creatively denying claims, canceling individual policies when insureds get sick, kicking unprofitable insureds out of the insurance pool, and issuing confusing benefit statements to insureds. Potter, with the support of Senator Al Franken, makes the case that Congress should pass legislation requiring health insurers to pay at least 90% of the premiums for real health care. According to Potter, the difference between 81% and 95% is $112 billion a year, which would amount to a significant reduction in premiums or a significant improvement in coverage. Wendell Potter is a voice we can trust when it comes to health care reform. A few months ago, I posted regarding his lengthy interview with Bill Moyers. See, also, Potter's recent interview at MSNBC, indicating that the health care industry owns the U.S. Senate. Potter makes clear that there is no reform taking place with current "reform" legislation.

Continue ReadingCap the profits of health care insurers.

Sarah Palin on how to improve Canada

The Canada Press reports that when Sarah Palin goes on a book-signing tour in Canada, no one is allowed to ask her any questions. But someone named Mary Walsh nonetheless asked a Palin for a comment. Here's what she got:

Palin strolled over, looking down on Walsh and her crew to tell them that "Canada needs to dismantle its public health-care system and allow private enterprise to get involved and turn a profit." "Basically, she said government should stop doing the work that private enterprise should do," Walsh said.
And Palin's new book is full of strange claims, according to Andrew Sullivan.

Continue ReadingSarah Palin on how to improve Canada

Tear up the health care bill and start over.

I wrote a comment on this same issue last night, but I wanted to make it into a post as well, given the importance. Marcia Angel, M.D., former editor of the New England Journal of Medicine, is highly critical of the proposed "health care reform." Although she admits that it accomplishes a few things, it is worse than doing nothing.

It throws more money into a dysfunctional and unsustainable system, with only a few improvements at the edges, and it augments the central role of the investor-owned insurance industry. The danger is that as costs continue to rise and coverage becomes less comprehensive, people will conclude that we've tried health reform and it didn't work. But the real problem will be that we didn't really try it.

Read the full post at Huffpo for Angel's clear and understandable ideas for meaningful (and not corrupt) health care reform. I agree with Angel that the current bill is an industry-coddling joke and that it is worse than doing nothing, for the reasons she offers. The House bill has a few pieces of low hanging fruit (e.g., portability), but at great unnecessary expense and waste. We need to tear up this celebrated new bill (celebrated by the Democrats, anyway) and start over. For more on Angell's ideas for reform, also see her recent appearance on Bill Moyer's show.

Continue ReadingTear up the health care bill and start over.