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In reply to the discussion: Weekend Economists Under the Influence of Saturn, November 16-18, 2012 [View all]Demeter
(85,373 posts)23. Real Danger of “Obamacare”: Insurance Company Takeover of Health Care By Nomi Prins
http://www.nationofchange.org/real-danger-obamacare-insurance-company-takeover-health-care-1352648027
...The average cost for health insurance for a family is $15,745 per year vs. a median income of $50,502, or about half post-tax take-home pay. Obamacare is the name commonly used for the Patient Protection and Affordable Care Act (PPACA) of 2010. The very moniker is indicative of how name-and-image-centric our world has become; Medicare was never called Johnsoncare when President Johnson signed it into law in 1965 and Johnson was not exactly a man of small-personality. At any rate, Obamacare or the PPACA ranks as one of the most misrepresented issues from the campaign, by both sides of the ever-slimming aisle. The Tea-Party Conservative types get it embarrassingly wrong when they call it a government takeover of health care. Likewise, Progressive Obama-supporters are deluded in accepting it as the most sweeping healthcare reform since Medicare. (Side note: I wish the word sweeping could be retired from politics until it actually means -sweeping.) Heres why. The PPACA does nothing to restructure the health insurance industry, anymore than the Dodd-Frank Act restructures the banking industry. This means everything else it attempts to do, positive or negative, will be vastly overshadowed by an industry accelerating to morph itself into a acquisition machine in order to circumvent anything that even smells like a restriction, including laws that exist and ones to come.
How? By doing the same thing energy and telecom companies did after they were deregulated in 1996, and that banks did after they were summarily deregulated (after moving that way for decades) in 1999. They are merging, consolidating, eliminating competitors, and controlling their domain. They are manufacturing power. Investment bankers are roaming the world to exploit this hot new opportunity. Thats one reason insurance companies dont even call themselves that anymore. Now, they are managed health care companies. Call yourself a managed health care company, and you can buy everything from other insurance companies to hospitals to clinics to doctors. The more consolidation, the more fees bankers rake in, and the more premiums and medical reimbursements and health care procedures, each company can control.
The result of 1996 energy deregulation was a glut of crime-spawned bankruptcies like Enron. Likewise WorldCom led a pack of telecom degenerates in the production of tens of billions of dollars worth of accounting fraud. The final repeal of Glass-Steagall ignited a merge-fest of investment and commercial banks, their linkages ensuring that taxpayers, whose deposits have been protected since the New Deal, provide a safety-net upon which they can mint toxic assets loosely based on over-leveraged home mortgages, and engage in risky, speculative activity; big banks dont go bankrupt when they fabricate values or lose big on stupid bets, they get federally subsidized in all sorts of ways.
You know who else is similarly too big to fail? The insurance industry. UnitedHealth Group, the nations largest health insurer covers 50% of the insurable population in over 30 states. Blue Cross-Blue Shield, covers 100 million people through a constellation of 38 sub-companies. They, and other insurance companies are growing in breadth. When companies consolidate, the result is less transparency, less competition, and more possibility for fraud and shady behavior. Every. Single. Time...Managed Health Care companies dont just administer private, but government health insurance policies as well. The http://www.healthcare.gov website says that under the PPACA, the life of the Medicare Trust Fund will be extended to 2024 as a result of reducing waste, fraud, abuse, and slowing cost growth. President Obama promised to reduce Medicare fraud 50% by 2012 according to the site but if he did, he forgot to mention it during the campaign period.
To supposedly combat price hikes, the PPACA calls for a new Rate Review program, wherein insurance companies must justify premium hikes of more than 10% to a state or federal review program. Given that banks arent supposed to hold more than 10% of the nations deposits in any one institution, and three do, this isnt a comforting constraint...By January 2014, the PPACA will require insurance companies to list their prices on competitive exchanges. In Obama-theory, this is supposed to reduce premiums via competition. But what if, say, only three companies control nearly all of the premiums? Consider the fact that it costs the same $3 to extract your money from a Chase, Bank of America or Citigroup ATM (if you dont get it directly from the firm you bank at.) They constitute a monopoly that defies anti-trust inspection (thank you, Department of Justice.) What incentive would any of them have to charge less? None. Thats why they dont...While it is positive that the PPACA requires coverage of people with pre-existing conditions and prohibits lifetime caps, it cant control what people pay for insurance, because it doesnt limit actual premiums, which have risen 13% on average since the Act was passed. The medical cost ratio limitation the PPACA instills; that 80% of premiums must be used for medical care in the case of individuals and small groups, and 85% in the case of large groups) to supposedly ensure companies operate on a more efficient premium in vs. premium out basis, is a joke. Its punch line is accounting manipulation. Call everything a medical cost; even buying another company, and the ratio is meaningless...WellPoint got that joke immediately. The largest for-profit managed health care company in the Blue Cross and Blue Shield Association, it began trading publicly on December 1, 2004. Depending on the state, it operates under Blue Cross and Blue Shield, Blue Cross or Anthem. After the PPACA was passed, in March 2010, WellPoint allegedly reclassified certain administrative costs as medical care costs in order to meet the laws new medical loss ratio requirements (which requires insurers spend at least 80% or 85% of premiums on health care services, depending on the type of plan, individual or group respectively.) A month earlier, WellPoint announced its Anthem Blue Cross unit would raise insurance rates for some individual policies in California up to 39%. Federal and California regulators are still investigating this, but the premium hikes remained. WellPoint is also one of Wall Streets favorite managed health care companies; cause it keeps getting bigger through acquisitions that pay hefty fees to the bankers involved. On October 23rd, WellPoint got approval from Amerigroups shareholders to acquire Amerigroup, a Medicaid-focused health insurer, in a $4.9 billion cash deal. The deal makes WellPoint the nations largest Medicaid insurer, and provides it greater access to Medicaid patients who also qualify for Medicare.
It was the largest cash deal ever, and the largest premium paid for a company in the managed health care realm...
EVER SO MUCH MORE AT LINK, NONE OF IT GOOD
WE DONE BEEN SOLD DOWN THE RIVER....THE IRONY! IT HURTS!
...The average cost for health insurance for a family is $15,745 per year vs. a median income of $50,502, or about half post-tax take-home pay. Obamacare is the name commonly used for the Patient Protection and Affordable Care Act (PPACA) of 2010. The very moniker is indicative of how name-and-image-centric our world has become; Medicare was never called Johnsoncare when President Johnson signed it into law in 1965 and Johnson was not exactly a man of small-personality. At any rate, Obamacare or the PPACA ranks as one of the most misrepresented issues from the campaign, by both sides of the ever-slimming aisle. The Tea-Party Conservative types get it embarrassingly wrong when they call it a government takeover of health care. Likewise, Progressive Obama-supporters are deluded in accepting it as the most sweeping healthcare reform since Medicare. (Side note: I wish the word sweeping could be retired from politics until it actually means -sweeping.) Heres why. The PPACA does nothing to restructure the health insurance industry, anymore than the Dodd-Frank Act restructures the banking industry. This means everything else it attempts to do, positive or negative, will be vastly overshadowed by an industry accelerating to morph itself into a acquisition machine in order to circumvent anything that even smells like a restriction, including laws that exist and ones to come.
How? By doing the same thing energy and telecom companies did after they were deregulated in 1996, and that banks did after they were summarily deregulated (after moving that way for decades) in 1999. They are merging, consolidating, eliminating competitors, and controlling their domain. They are manufacturing power. Investment bankers are roaming the world to exploit this hot new opportunity. Thats one reason insurance companies dont even call themselves that anymore. Now, they are managed health care companies. Call yourself a managed health care company, and you can buy everything from other insurance companies to hospitals to clinics to doctors. The more consolidation, the more fees bankers rake in, and the more premiums and medical reimbursements and health care procedures, each company can control.
The result of 1996 energy deregulation was a glut of crime-spawned bankruptcies like Enron. Likewise WorldCom led a pack of telecom degenerates in the production of tens of billions of dollars worth of accounting fraud. The final repeal of Glass-Steagall ignited a merge-fest of investment and commercial banks, their linkages ensuring that taxpayers, whose deposits have been protected since the New Deal, provide a safety-net upon which they can mint toxic assets loosely based on over-leveraged home mortgages, and engage in risky, speculative activity; big banks dont go bankrupt when they fabricate values or lose big on stupid bets, they get federally subsidized in all sorts of ways.
You know who else is similarly too big to fail? The insurance industry. UnitedHealth Group, the nations largest health insurer covers 50% of the insurable population in over 30 states. Blue Cross-Blue Shield, covers 100 million people through a constellation of 38 sub-companies. They, and other insurance companies are growing in breadth. When companies consolidate, the result is less transparency, less competition, and more possibility for fraud and shady behavior. Every. Single. Time...Managed Health Care companies dont just administer private, but government health insurance policies as well. The http://www.healthcare.gov website says that under the PPACA, the life of the Medicare Trust Fund will be extended to 2024 as a result of reducing waste, fraud, abuse, and slowing cost growth. President Obama promised to reduce Medicare fraud 50% by 2012 according to the site but if he did, he forgot to mention it during the campaign period.
To supposedly combat price hikes, the PPACA calls for a new Rate Review program, wherein insurance companies must justify premium hikes of more than 10% to a state or federal review program. Given that banks arent supposed to hold more than 10% of the nations deposits in any one institution, and three do, this isnt a comforting constraint...By January 2014, the PPACA will require insurance companies to list their prices on competitive exchanges. In Obama-theory, this is supposed to reduce premiums via competition. But what if, say, only three companies control nearly all of the premiums? Consider the fact that it costs the same $3 to extract your money from a Chase, Bank of America or Citigroup ATM (if you dont get it directly from the firm you bank at.) They constitute a monopoly that defies anti-trust inspection (thank you, Department of Justice.) What incentive would any of them have to charge less? None. Thats why they dont...While it is positive that the PPACA requires coverage of people with pre-existing conditions and prohibits lifetime caps, it cant control what people pay for insurance, because it doesnt limit actual premiums, which have risen 13% on average since the Act was passed. The medical cost ratio limitation the PPACA instills; that 80% of premiums must be used for medical care in the case of individuals and small groups, and 85% in the case of large groups) to supposedly ensure companies operate on a more efficient premium in vs. premium out basis, is a joke. Its punch line is accounting manipulation. Call everything a medical cost; even buying another company, and the ratio is meaningless...WellPoint got that joke immediately. The largest for-profit managed health care company in the Blue Cross and Blue Shield Association, it began trading publicly on December 1, 2004. Depending on the state, it operates under Blue Cross and Blue Shield, Blue Cross or Anthem. After the PPACA was passed, in March 2010, WellPoint allegedly reclassified certain administrative costs as medical care costs in order to meet the laws new medical loss ratio requirements (which requires insurers spend at least 80% or 85% of premiums on health care services, depending on the type of plan, individual or group respectively.) A month earlier, WellPoint announced its Anthem Blue Cross unit would raise insurance rates for some individual policies in California up to 39%. Federal and California regulators are still investigating this, but the premium hikes remained. WellPoint is also one of Wall Streets favorite managed health care companies; cause it keeps getting bigger through acquisitions that pay hefty fees to the bankers involved. On October 23rd, WellPoint got approval from Amerigroups shareholders to acquire Amerigroup, a Medicaid-focused health insurer, in a $4.9 billion cash deal. The deal makes WellPoint the nations largest Medicaid insurer, and provides it greater access to Medicaid patients who also qualify for Medicare.
It was the largest cash deal ever, and the largest premium paid for a company in the managed health care realm...
EVER SO MUCH MORE AT LINK, NONE OF IT GOOD
WE DONE BEEN SOLD DOWN THE RIVER....THE IRONY! IT HURTS!
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Weekend Economists Under the Influence of Saturn, November 16-18, 2012 [View all]
Demeter
Nov 2012
OP
well -- since i have my doubts about this 'crisis' -- for me it's just another reason for democrats
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