# Insurance Industry



Ads thanking Boswell and other health care reform news

Health Care for America NOW and the American Federation of State, County and Municipal Employees are running television ads this week thanking 20 Democrats in relatively tough districts who voted for the House health care reform bill last Saturday. If you live in the Des Moines viewing area, you may have seen this commercial about Congressman Leonard Boswell:

   

Corporate-funded conservative groups have targeted Boswell in negative ads this year because of his vote for the climate-change bill in June. Ads attacking the health care reform project (many funded by insurance industry fronts or the Chamber of Commerce) have been plentiful this summer and fall too. It makes sense for reform advocates to thank Boswell, as Iowa Republicans are gearing up to challenge him with State Senator Brad Zaun or some other well-known figure.  

In other health care reform news, Tom Harkin is among the Senate Democrats trying to keep the "Stupak amendment" language on abortion out of the Senate's version of health care reform. He's absolutely right that some people pushing amendments are trying to kill the bill rather than make it better. A lot of questions have been raised about whether defeating the bill was Representative Bart Stupak's main goal. Since 1992, Stupak has been involved with the fundamentalist Christian "Family" group and has lived in their house on C Street in Washington.  

Stupak claims that as many as 40 House Democrats would reject health care reform without his amendment, but yesterday House Whip James Clyburn said the Stupak amendment only gained 10 votes for the bill. Meanwhile, more than 40 House liberals are threatening to vote down the final bill out of conference if it contains the Stupak language.  

Final note: MyDD user Bruce Webb wrote an interesting piece about what he views as "the most important and overlooked sentence" in the House health care reform bill:  

Most of the criticism of HR3962 coming from the left revolves around the belief that the House bill has no premium and so no profit controls, that it in effect delivers millions of Americans into the hands of insurance companies who can continue to raise premiums at will while denying care by managing the risk pool in favor of those unlikely to make claims. This just is not true, not if the provision in this one sentence is properly implemented. In a stroke it guts the entire current business model of the insurance companies, based as it is on predation and selective coverage, and replaces it with a model where you can only make money by extending coverage to the widest range of customers and or delivering that coverage in a more efficient way.

 Like they say, go read the whole thing.
 

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Dorgan will offer amendment on importing prescription drugs

The White House agreement with the pharmaceutical industry, which is reflected in the Senate Finance Committee’s health care bill, is one of the most shameful episodes of the health care reform process. Presidential candidate Barack Obama had promised to “put an end to the game-playing” in Washington, citing in one television ad the deal the pharmaceutical industry wrote into the Medicare prescription drug legislation. Yet in order to bring big Pharma on board with health care reform, the White House “stood by a behind-the-scenes deal to block any Congressional effort to extract cost savings from them beyond an agreed-upon $80 billion.”

Senator Byron Dorgan of North Dakota says no deal, according to Ryan Grim of the Huffington Post:

A Senate Democratic leader is hoping to blow up the deal reached between the White House, drug makers and Senate Finance Committee Chairman Max Baucus (D-Mont.), by introducing an amendment on the floor to allow prescription drugs to be re-imported from Canada.

It’s one of the simplest ways to reduce health care costs but was ruled out by the agreement, which limits Big Pharma’s contribution to health care reform to $80 billion over ten years.

North Dakota Sen. Byron Dorgan, a member of Democratic leadership, isn’t a party to that bargain. “Senator Dorgan intends to offer an amendment to the health reform bill and his expectation is that it will be one of the first amendments considered,” his spokesman Justin Kitsch told HuffPost in an e-mail. “Prescription drug importation is an immediate way to put downward pressure on health care costs. It has bipartisan support, and has been endorsed by groups such as the National Federation of Independent Businesses and AARP.” […]

Jim Manley, senior communications adviser to Senate Majority Leader Harry Reid (D-Nev.), said that he sees no reason the amendment won’t get a floor vote.

If an amendment on reimporting drugs from Canada gets to the Senate floor, it is hard to see how it fails to pass. Grim notes that a separate bill to allow re-importation of prescription drugs from Canada “has 30 cosponsors, several Republicans among them.” I hope the White House doesn’t start twisting arms to keep that amendment off the Senate floor.

Giving the government the ability to negotiate prescription drug prices would bring costs down even more. Obama should support that reform, since he says he won’t let the health care bill add a dime to the deficit. But apparently, not taking that step was part of the White House deal with drug companies.

Speaking of backroom deals, Alexander Bolton reports for The Hill, citing “senior Democratic aides,” that Reid will “not include legislation repealing antitrust exemptions for the health insurance industry in the healthcare package he will bring to the Senate floor.”

So far the powerful insurance industry has held back waging a full-out battle against Democratic health reform proposals because companies stand to gain tens of millions of new customers. But adding language that would open health insurance companies to prosecution by the Justice Department would provoke a strong counterattack from the industry.

Hey, why take something valuable away from the insurance industry (the ability to fix prices) just because we’re about to hand them a “bonanza” (individual mandate to buy their products)? They might run ads against us.

It is time to replace Reid as Senate majority leader. Since Senate Democrats are unlikely to take that step, I agree with Chris Bowers that Reid losing re-election next year wouldn’t be such a bad thing. Getting a more effective majority leader, like Dick Durbin of Illinois or Chuck Schumer of New York, would make up for losing Reid’s Senate seat.

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Waxman to turn spotlight on insurance industry

House Energy and Commerce Committee Chairman Henry Waxman is ready to shine a light on the health insurance industry’s business practices, according to this piece by Bill Boyarsky at Truthdig:

Waxman has already begun by demanding that major insurance companies reveal how much they pay top executives and board members and, most important, the size of their profits from selling policies. […]

I asked Waxman whether he expected the insurance companies to reply to his letters. “Oh yes,” he said. “When we write letters, we expect to get answers.” And what was his purpose in seeking the information? At first, he was reluctant to discuss the investigation. Finally, he gave a guarded reply: that many folks perhaps take too benign a view of private insurance companies. […]

The letters from Waxman and his colleague, Bart Stupak, chairman of the House Oversight and Investigations Subcommittee, went to every major insurance company, ranging from Aetna to Wellpoint. The lawmakers want to know the pay, stock options, perks, incentives, and retirement and other financial information of executives earning more than $500,000 a year. They are curious about the cost of promotional junkets. They are seeking disclosure of premiums, revenue, claims payments and sales expenses for health insurance policies. This includes sales to employers, individuals and the government. Interestingly, while insurance companies rail against the federal government, they earn money from participating in a number of federal programs, such as Medicare.

David Mizner has more on why this is important.

Speaking of insurance industry practices, Froma Harrop of the Providence Journal wrote a powerful column last week on the “death panel” her late husband faced from their insurance company, United Healthcare, after he was diagnosed with liver cancer.

A United Healthcare subsidiary owns the Lewin Group, which has been putting out so-called “non-partisan” research to discredit the idea of a public health insurance option.

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