Showing posts with label Critique of Obamacare bill.. Show all posts
Showing posts with label Critique of Obamacare bill.. Show all posts

Monday, March 22, 2010

Chris Hedges: Health Care Hindenburg Has Landed

It remains to be seen how many liberals will leave the Democrats. There seems little real change in US politics. The Afghan war goes on just as with Bush but with even more troops. Now the vaunted health care reform has done little but to boost health care industry stocks today. The sooner the left in the US gives up on the Democrats the better. The Democrats do not need to pay attention to the left because they have nowhere to go. However, the Wall Street money sees a rosy future and is turning their money spouts to the Republicans in the belief that the Democrats will become increasingly unpopular and have outlived their usefulness for the present. Would that the left had as much wisdom! This is from this site.



The Health Care Hindenburg Has Landed

By Chris Hedges

Rep. Dennis Kucinich’s decision to vote “yes” in Sunday’s House
action on the health care bill, although he had sworn to oppose
the legislation unless there was a public option, is a perfect
example of why I would never be a politician. I respect Kucinich.
As politicians go, he is about as good as they get, but he is
still a politician. He has to run for office. He has to raise
money. He has to placate the Democratic machine or risk
retaliation and defeat. And so he signed on to a bill that will do
nothing to ameliorate the suffering of many Americans, will force
tens of millions of people to fork over a lot of money for a
defective product and, in the end, will add to the ranks of our
uninsured.

The claims made by the proponents of the bill are the usual
deceptive corporate advertising. The bill will not expand coverage
to 30 million uninsured, especially since government subsidies
will not take effect until 2014. Families who cannot pay the high
premiums, deductibles and co-payments, estimated to be between 15
and 18 percent of most family incomes, will have to default,
increasing the number of uninsured. Insurance companies can
unilaterally raise prices without ceilings or caps and monopolize
local markets to shut out competitors. The $1.055 trillion spent
over the next decade will add new layers of bureaucratic red tape
to what is an unmanageable and ultimately unsustainable system.

The mendacity of the Democratic leadership in the face of this
reality is staggering. Howard Dean, who is a doctor, said
recently: “This is a vote about one thing: Are you for the
insurance companies or are you for the American people?” Here is a
man who once championed the public option and now has sold his
soul. What is the point in supporting him or any of the other
Democrats? How much more craven can they get?

Take a look at the health care debacle in Massachusetts, a model
for what we will get nationwide. One in six people there who have
the mandated insurance say they cannot afford care, and tens of
thousands of people have been evicted from the state program
because of budget cuts. The 45,000 Americans who die each year
because they cannot afford coverage will not be saved under the
federal legislation. Half of all personal bankruptcies will still
be caused by an inability to pay astronomical medical bills. The
only good news is that health care stocks and bonuses for the
heads of these corporations are shooting upward. Chalk this up as
yet another victory for our feudal overlords and a defeat for the
serfs.

The U.S. spends twice as much as other industrialized nations on
health care—$7,129 per capita—although 45.7 million Americans
remain without health coverage and millions more are inadequately
covered, meaning that if they get seriously ill they are not
covered. Fourteen thousand Americans a day are now losing their
health coverage. A report in the journal Health Affairs estimates
that, if the system is left unchanged, one of every five dollars
spent by Americans in 2017 will go to health coverage. Private
insurance bureaucracy and paperwork consume 31 cents of every
health care dollar. Streamlining payment through a single
nonprofit payer would save more than $400 billion per year,
enough, Physicians for a National Health Plan points out, to
provide comprehensive, high-quality coverage for all Americans.
Check out www.healthcare-now.org. It has some of the best analysis.

This bill is not about fiscal responsibility or the common good.
The bill is about increasing corporate profit at taxpayer expense.
It is the health care industry’s version of the Wall Street
bailout. It lavishes hundreds of billions in government subsidies
on insurance and drug companies. The some 3,000 health care
lobbyists in Washington, whose dirty little hands are all over the
bill, have once more betrayed the American people for money. The
bill is another example of why change will never come from within
the Democratic Party. The party is owned and managed by
corporations. The five largest private health insurers and their
trade group, America’s Health Insurance Plans, spent more than $6
million on lobbying in the first quarter of 2009. Pfizer, the
world’s biggest drug maker, spent more than $9 million during the
last quarter of 2008 and the first three months of 2009. The
Washington Post reported that up to 30 members of Congress from
both parties who hold key committee memberships have major
investments in health care companies totaling between $11 million
and $27 million. President Barack Obama’s director of health care
policy, who will not discuss single payer as an option, has served
on the boards of several health care corporations. And as salaries
for most Americans have stagnated or declined during the past
decade, health insurance profits have risen by 480 percent.

Obama and the congressional leadership have consciously shut out
advocates of single payer from the debate. The press, including
papers such as The New York Times, treats single payer as a fringe
movement. The television networks rarely mention it. And yet
between 45 and 60 percent of doctors favor single payer. Between
40 and 62 percent of the American people, including 80 percent of
registered Democrats, want universal, single-payer not-for-profit
health care for all Americans. The ability of the corporations to
discredit and silence voices that represent at least half of the
population is another sad testament to the power of our corporate
state to frame all discussions.

Change will come only by building movements that stand in fierce
and uncompromising opposition to the Democrats and the
Republicans. If they can herd Kucinich and John Conyers, the
sponsors of House Resolution 676, a bill that would create a
publicly funded National Health Program by eliminating private
health insurers, onto the House floor to vote for this corporate
theft, what is the point in pretending there is any room left for
us in the party? And why should we waste our time with gutless
liberal groups such as Moveon.org, which felt the need to collect
more than $1 million to pressure House Democrats who had voted
“no” on the original bill to recant? What was this purportedly
anti-war group doing anyway serving as an obsequious recruiting
arm of the Obama election campaign? The longer we tie ourselves to
the Democrats and these bankrupt liberal organizations the more
ridiculous and impotent we appear.

“I’m ready to listen to the White House, if the White House is
ready to listen to the concerns about putting a public option in
this bill,” the old Kucinich said on the “Democracy Now!” radio
and television program before he flipped. “I mean, they can do
that. You know, they’re still cutting last-minute deals. Put the
public option back in. Make it a robust public option. Give the
people a chance to really negotiate rates with the insurance
companies … from the standpoint of having a public option. But
don’t just tell the people that you’re going to call this health
care reform, when you’re giving insurance companies an even more
powerful monopoly status in our economy.”

Saturday, March 20, 2010

18 Myths about the Health Care Bill.

This is a critique of 18 claims about the health care bill and a critique of each of those claims. While some of the criticisms might be made by conservatives many more would appeal more to leftists and liberals. This is from firedoglake.

Fact Sheet: The Truth About the Health Care Bill
By: Jane Hamsher Friday March 19, 2010 8:58 am

I’ll be on the new CNN show with Jon King that premieres at noon ET, available for live stream here — jh

The Firedoglake health care team has been covering the debate in congress since it began last year.
We’ve also taken a detailed look at the bill, and have come up with 18 often stated myths about this health care reform bill.


Myth

Truth

1. This is a universal health care bill.


The bill is neither universal health care nor universal health insurance.

Per the CBO:

Total uninsured in 2019 with no bill: 54 million
Total uninsured in 2019 with Senate bill: 24 million (44%)

2. Insurance companies hate this bill


This bill is almost identical to the plan written by AHIP, the insurance company trade association, in 2009.
The original Senate Finance Committee bill was authored by a former Wellpoint VP. Since Congress released the first of its health care bills on October 30, 2009, health care stocks have risen 28.35%.

3. The bill will significantly bring down insurance premiums for most Americans.


The bill will not bring down premiums significantly, and certainly not the $2,500/year that the President promised.

Annual premiums in 2016, status quo / with bill:

Small group market, single: $7,800 / $7,800

Small group market, family: $19,300 / $19,200

Large Group market, single: $7,400 / $7,300

Large group market, family: $21,100 / $21,300

Individual market, single: $5,500 / $5,800*

Individual market, family: $13,100 / $15,200*

4. The bill will make health care affordable for middle class Americans.
The bill will impose a financial hardship on middle class Americans who will be forced to buy a product that they can’t afford to use.
A family of four making $66,370 will be forced to pay $5,243 per year for insurance. After basic necessities, this leaves them with $8,307 in discretionary income — out of which they would have to cover clothing, credit card and other debt, child care and education costs, in addition to $5,882 in annual out-of-pocket medical expenses for which families will be responsible.

5. This plan is similar to the Massachusetts plan, which makes health care affordable. Many Massachusetts residents forgo health care because they can’t afford it.
A 2009 study by the state of Massachusetts found that:

21% of residents forgo medical treatment because they can’t afford it, including 12% of children
18% have health insurance but can’t afford to use it

6. This bill provide health care to 31 million people who are currently uninsured.


This bill will mandate that millions of people who are currently uninsured must purchase insurance from private companies, or the IRS will collect up to 2% of their annual income in penalties. Some will be assisted with government subsidies.

7. You can keep the insurance you have if you like it.
The excise tax will result in employers switching to plans with higher co-pays and fewer covered services.
Older, less healthy employees with employer-based health care will be forced to pay much more in out-of-pocket expenses than they do now.

8. The “excise tax” will encourage employers to reduce the scope of health care benefits, and they will pass the savings on to employees in the form of higher wages.

There is insufficient evidence that employers pass savings from reduced benefits on to employees.


9. This bill employs nearly every cost control idea available to bring down costs.


This bill does not bring down costs and leaves out nearly every key cost control measure, including:
Public Option ($25-$110 billion)
Medicare buy-in
Drug reimportation ($19 billion)
Medicare drug price negotiation ($300 billion)
Shorter pathway to generic biologics ($71 billion)

10. The bill will require big companies like WalMart to provide insurance for their employees

The bill was written so that most WalMart employees will qualify for subsidies, and taxpayers will pick up a large portion of the cost of their coverage.

11. The bill “bends the cost curve” on health care.


The bill ignored proven ways to cut health care costs and still leaves 24 million people uninsured, all while slightly raising total annual costs by $234 million in 2019.
“Bends the cost curve” is a misleading and trivial claim, as the US would still spend far more for care than other advanced countries.

In 2009, health care costs were 17.3% of GDP.

Annual cost of health care in 2019, status quo: $4,670.6 billion (20.8% of GDP)

Annual cost of health care in 2019, Senate bill: $4,693.5 billion (20.9% of GDP)

12. The bill will provide immediate access to insurance for Americans who are uninsured because of a pre-existing condition. Access to the “high risk pool” is limited and the pool is underfunded. It will cover few people, and will run out of money in 2011 or 2012
Only those who have been uninsured for more than six months will qualify for the high risk pool. Only 0.7% of those without insurance now will get coverage, and the CMS report estimates it will run out of funding by 2011 or 2012.

13. The bill prohibits dropping people in individual plans from coverage when they get sick. The bill does not empower a regulatory body to keep people from being dropped when they’re sick.
There are already many states that have laws on the books prohibiting people from being dropped when they’re sick, but without an enforcement mechanism, there is little to hold the insurance companies in check.

14. The bill ensures consumers have access to an effective internal and external appeals process to challenge new insurance plan decisions. The “internal appeals process” is in the hands of the insurance companies themselves, and the “external” one is up to each state.
Ensuring that consumers have access to “internal appeals” simply means the insurance companies have to review their own decisions. And it is the responsibility of each state to provide an “external appeals process,” as there is neither funding nor a regulatory mechanism for enforcement at the federal level.
15. This bill will stop insurance companies from hiking rates 30%-40% per year.


This bill does not limit insurance company rate hikes. Private insurers continue to be exempt from anti-trust laws, and are free to raise rates without fear of competition in many areas of the country.

16. When the bill passes, people will begin receiving benefits under this bill immediately


Most provisions in this bill, such as an end to the ban on pre-existing conditions for adults, do not take effect until 2014.
Six months from the date of passage, children could not be excluded from coverage due to pre-existing conditions, though insurance companies could charge more to cover them. Children would also be allowed to stay on their parents’ plans until age 26. There will be an elimination of lifetime coverage limits, a high risk pool for those who have been uninsured for more than 6 months, and community health centers will start receiving money.

17. The bill creates a pathway for single payer.


Bernie Sanders’ provision in the Senate bill does not start until 2017, and does not cover the Department of Labor, so no, it doesn’t create a pathway for single payer.

Obama told Dennis Kucinich that the Ohio Representative’s amendment is similar to Bernie Sanders’ provision in the Senate bill, and creates a pathway to single payer. Since the waiver does not start until 2017, and does not cover the Department of Labor, it is nearly impossible to see how it gets around the ERISA laws that stand in the way of any practical state single payer system.

18 The bill will end medical bankruptcy and provide all Americans with peace of mind.


Most people with medical bankruptcies already have insurance, and out-of-pocket expenses will continue to be a burden on the middle class.
In 2009, 1.5 million Americans declared bankruptcy
Of those, 62% were medically related
Three-quarters of those had health insurance
The Obama bill leaves 24 million without insurance
The maximum yearly out-of-pocket limit for a family will be $11,900 (PDF) on top of premiums
A family with serious medical problems that last for a few years could easily be financially crushed by medical costs
*Cost of premiums goes up somewhat due to subsidies and mandates of better coverage. CBO assumes that cost of individual policies goes down 7-10%, and that people will buy more generous policies.

Documentation:

March 11, Letter from Doug Elmendorf to Harry Reid (PDF)
The AHIP Plan in Context, Igor Volsky; The Max Baucus WellPoint/Liz Fowler Plan, Marcy Wheeler
CBO Score, 11-30-2009
“Affordable” Health Care, Marcy Wheeler
Gruber Doesn’t Reveal That 21% of Massachusetts Residents Can’t Afford Health Care, Marcy Wheeler; Massachusetts Survey (PDF)
Health Care on the Road to Neo-Feudalism, Marcy Wheeler
CMS: Excise Tax on Insurance Will Make Your Insurane Coverage Worse and Cause Almost No Reduction in NHE, Jon Walker
Employer Health Costs Do Not Drive Wage Trends, Lawrence Mishel
CBO Estimates Show Public Plan With Higher Savings Rate, Congress Daily; Drug Importation Amendment Likely This Week, Politico; Medicare Part D IAF; A Monopoloy on Biologics Will Drain Health Care Resources, Lancet Student
MaxTax Is a Plan to Use Our Taxes to Reward Wal-Mart for Keeping Its Workers in Poverty, Marcy Wheeler
Estimated Financial Effects of the “Patient Protection and Affordable Care Act of 2009,” as Proposed by the Senate Majority Leader on November 18, 2009, CMS (PDF)
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Health insurance companies hang onto their antitrust exemption, Protect Consumer Justice.org
What passage of health care reform would mean for the average American, DC Examiner
How to get a State Single Payer Opt-Out as Part of Reconciliation, Jon Walker
Medical bills prompt more than 60 percent of U.S. bankruptcies, CNN.com; The Patient Protection and Affordable Care Act Section‐by‐Section Analysis (PDF)
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