Regional news:
The House on Saturday approved its version of health care reform (more like health care hijacking…click here for story).
Janet Trautwein, CEO of the National Association of Health Underwriters (NAHU) responded with an op-ed piece sent to members of NAHU (I am a member) that can be sent to publishers like myself. Her “letter to the editor” needs no more introduction; it speaks for itself.
A New Public Insurance Program Won’t Work
By Janet Trautwein
There’s little doubt that Washington will move forward with health reform this year.
Central to many proposals is the creation of a government-run insurance plan that every American could purchase. By injecting more competition into the insurance market, this might seem like an intelligent way to lower overall health care costs. The truth, though, is that a “public option” would simply shift health care costs onto private payers — and undermine the private insurance system in the process.
As currently proposed, the public option would be sold through a new National Health Insurance Exchange. This Exchange would serve as a marketplace where consumers from across the country could choose from a range of private policy offerings or opt for the public plan.
Proponents call this competition. Unfortunately, the game would be rigged from the start in favor of the public plan.
Consider how America’s current public options — Medicare and Medicaid — fit into our health sector. Both government programs systematically underpay hospitals and physicians by as much as 15-20 percent in order to keep costs down.
But healthcare providers don’t just glumly accept whatever the government gives them. As a matter of financial necessity, they shift unpaid costs onto private interests.
The consulting group Milliman Inc. estimated that Medicare and Medicaid offloaded $88 billion in costs to commercial payers in 2007. That $88 billion came directly out of consumers’ pockets. In fact, the average family of four saw its insurance premiums increase $1,500 as a result of the public programs’ systematic underpayment.
In the state of Washington, where Medicare pays about 25 percent less than private insurers, hospitals charged consumers an extra $738 million to make up for Medicare underpayments in 2004. Physicians charged consumers an extra $620 million. That adds up to almost $1.4 billion in additional costs, or $902 per family insurance policy.
A new public option would only exacerbate cost-shifts like these. Private insurers would be forced to raise their prices to make up for cost-shifting. Eventually, private insurance would become prohibitively expensive.
After all, private insurers must cover their costs; they can’t afford to run a deficit. A public plan, on the other hand, would have a direct line to the federal treasury. It could price itself well below its true costs and operate at a loss.
Over time, more and more Americans would opt for an artificially cheap public plan. Private carriers would be forced from the market, unable to compete. Soon, the public option would be the only option.
There are better ways to expand insurance coverage — even to the intended targets of a public plan, like those who are nearing retirement and those with pre-existing conditions.
Consider Idaho’s program for high-risk patients. Lawmakers there have allowed private carriers to cede the financial risk for certain high-risk individuals to a reinsurance pool. All private insurers in the state pay into this pool, which then covers high-risk beneficiaries’ more expensive medical costs.
A public option in health care may seem like a clever way to expand insurance coverage and lower costs. But America’s existing public options prove that another government-run health plan will only raise the cost of private insurance and crowd out private alternatives — until the public option is the only one around.
Janet Trautwein is Executive Vice President and CEO of the National Association of Health Underwriters.
2 Responses to “NAHU calls House health reform bill ‘clever’ but warns of dire outcome”
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jacksmith Says:
November 9th, 2009 at 1:37 pmUrgent!! Robert Reich on your healthcare http://bit.ly/SAQ7a
Why A Strong Public Option Is Essential – By jacksmith – Working Class
Robert Reich explains the pubic option: http://bit.ly/dDYSJ
Hollywood Supports The Public Option :-) http://bit.ly/3XLwPi
Beautiful HEATHER GRAHAM http://bit.ly/12sRYD :-)
It’s not just because more than two thirds of the American people want a single payer health care system. And if they cant have a single payer system 77% of all Americans want a strong government-run public option on day one (86% of democrats, 75% of independents, and 72% republicans). Basically everyone.
It’s not just because according to a new AARP POLL: 86 percent of seniors want universal healthcare security for All, including 93% of Democrats, 87% of Independents, and 78% of Republicans. With 79% of seniors supporting creating a new strong Government-run public option plan, available immediately. Including 89% of Democrats, 80% of Independents, and 61% of Republicans, STUNNING!!
It’s not just because it will lower cost. Because a strong public option will dramatically lower cost for everyone. And dramatically improved the quality of care everyone receives in America and around the World. Rich, middle class, and poor a like.
It’s not just because it will save trillions of dollars and prevent the needless deaths of millions more of YOU, caused by a rush to profit by the DISGRACEFUL, GREED DRIVEN, PRIVATE FOR PROFIT MEDICAL INDUSTRIAL COMPLEX!
It’s not just because every expert in every field, including economist, and Nobel laureates all agree that free market based healthcare systems don’t work. Never have and never will. The US has the only truly free market based healthcare system in the World. And as you all know now, IT IS A DISASTER!
It’s not just because providing or denying medically necessary care for profit motivations is wrong. Because it is WRONG! It’s professionally, ethically, and morally REPUGNANT!, Animalistic, VILE and EVIL.
THE REASON THE PUBLIC OPTION IS ESSENTIAL:
The public option is ESSENTIAL because over 200 million of you are trapped in the forest of the wolves. Which is the forest of the DISGRACEFUL, GREED DRIVEN, PRIVATE FOR PROFIT MEDICAL INDUSTRIAL COMPLEX! With no way out except through needless inhumane suffering, and DEATH. While the wolves tear at your flesh, and rip you limb from lib. Then feast on your lifeless bodies like a dead carcase for transplant parts.
At the most vulnerable times of your lives (when you were sick and hurting), millions of you have had to fight and loose cruel, but heroic battles. Fighting against the big guns of the DISGRACEFUL, GREED DRIVEN, PRIVATE FOR PROFIT MEDICAL INDUSTRIAL COMPLEX! in the forest of the wolves. All because you have no place else to go. You have no other CHOICE!
But the PUBLIC OPTION will give you someplace safe to go. And it will give us someplace safe to take you. The public option will be your refugium (your refuge). Where the wolves cannot get at you when your down, hurting, and vulnerable. Where everyone who needs it can find rest, security, comfort and the care they need. Protected by the BIG GUNS of We The People Of The United States. THE MOST POWERFUL PEOPLE AND COUNTRY ON EARTH.
This is why it is so critical that we do not lead another 50 million vulnerable, uninsured Americans into the forest of the wolves, without the protections of a Strong Government-run MEDICARE like public option. We The People Of The United States MUST NOT LET THAT HAPPEN to any more of our fellow Americans. If healthcare reform does not contain a strong MEDICARE like public option on day one. YOU MUST! KILL IT. Or you will do far more harm than good. And millions more will die needlessly. Rich, middle class, and poor a like.
To those who would continue to obstruct good and true healthcare reform for the American people, and who seek to trap millions more vulnerable Americans in the forest of the wolves. We will continue to fight you. We are prepared to wage all out war against you, and will eagerly DESTROY! you. Time…is…UP! YOU HAVE BEEN WARNED! No Co-op’s! No Triggers! NO INDIVIDUAL MANDATES! without a Strong MEDICARE like public option on day one.
Healthcare reform can be the GREATEST! Accomplishment of our time and century. A time when future generations may say of us, that we were all, AMERICAS GREATEST GENERATIONS.
BUT WE MUST ACT!
I therefore call on all my fellow Americans and the peoples of the World. To join us in this fight so that we may finish becoming the better America that we aspire to be for everyone.
SPREAD THE WORD!
I have been privileged to be witness as many of you fought, and struggled to take your first breath, and your last breath on this earth. Rich, middle class, and poor a like. Life is precious.
Whatever the cost. WE! MUST SUCCEED.
God Bless You My Fellow Human Beings
jacksmith – Working Class
ATTENTION!! Congress Has The Votes Needed To Pass A Public Option – TODAY http://bit.ly/TCq7O
Things You Can Do To Help NOW! http://www.everydaycitizen.com/2009/09/tired_of_watching_people_die_n.html
A majority of voters would rather have a Democrats only bill with a Public Option. Than a bipartisan bill without a Public Option.
A state based insurance plan is NOT!! a Public Option. Nor is it a Strong, National, Medicare like Public Option.
No Triggers! http://www.huffingtonpost.com/jason-rosenbaum/a-trigger-for-the-public_b_277910.html
Triggers http://www.huffingtonpost.com/david-sirota/weve-seen-these-triggers_b_283583.html
Krugman on heathcare (http://krugman.blogs.nytimes.com/2009/07/25/why-markets-cant-cure-healthcare/)
Senator Bernie Sanders on healthcare (http://www.youtube.com/watch?v=RSM8t_cLZgk&feature=player_embedded)
John Garamendi on the Public Option and the Grassroots: http://bit.ly/TJMty
Howard Dean on the Public Option http://www.youtube.com/watch?v=8SKfW2dUnow&feature=player_embedded
We’re Number 37! in quality of health care http://www.youtube.com/watch?v=yVgOl3cETb4&feature=player_embedded
Twitter search (#welovethenhs #NHS #hc09 #hcr #healthcar #obama #p2 #topprog #) Check it out.
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sadhay Says:
November 10th, 2009 at 11:59 amWe have an enormous problem with Medicare (our government run plan for Seniors and Disabled) – right now – and the issue is not bing addressed!
To quote from the National Center for Policy Analysis (www.ncpa.org):
“The 2009 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached nearly $107 trillion dollars! That is about seven times the size of the U.S. economy and 10 times the size of the outstanding national debt.” (Medicare Parts A, B and D represents $89.3 trillion of the $107 trilion number)
The end of the report states:
“Conclusion: The Social Security and Medicare deficits are on a course to engulf the entire federal budget. If our policymakers wait to address these growing debts until they are out of control, the solutions will be drastic and painful.”
What are we waiting for?
