"The Insurance Industry Profit Protection and Enhancement Act"

Today Senator Max Baucus (D-MT), chair of the Senate Finance Committee, and his "Gang of Six" have released their version of health care "reform," which some say is the version that has the "best chance of passing." Bob Cesca points out that the bill is "bipartisan" only in that "members of both parties hate it."

According to the Associated Press, Baucus has received "some $3.9 million in contributions from the health care industry since 1989" and "all six of the Finance Committee members most intimately involved in drafting the measure have received above-average donations from the health care world."

Wendell Potter, senior fellow on health care at the Center for Media and Democracy and former CIGNA executive turned whistle-blower, who spoke at last weekend's Fighting Bob Fest (which I was privileged to attend) says the Baucus bill may as well be called the "Insurance Industry Profit Protection and Enhancement Act" and would be "an absolute gift to the industry."

Wendell Potter speaking at the Fighting Bob Fest,
Baraboo, Wisconsin, September 12, 2009

Potter says that, rather than representing a "government takeover," as some mistakenly fear, the bill represents a "Wall-Street takeover" of health insurance, requiring that the already severely squeezed middle class sign over its life savings to the health insurance cartel.

Rather than a robust public option, the bill promotes insurance co-ops, which according to Potter, "would be unable to compete in today’s concentrated health insurance markets" and therefore would be completely ineffectual at reducing health care costs.

David Dayen of Brave New Films says the bill attempts to bring costs down by allowing insurance companies to offer lousy coverage. According to the New York Times,

To compare health plans, experts often focus on the percentage of medical expenses paid by insurance, on average, for a given population. This figure ranges from 70 percent to 95 percent under the House bill’s options, but it would be less than 70 percent under Mr. Baucus’s proposal.

Not only would the coverage be lousy, but we would be forced to buy it or pay a stiff penalty. According to the New York Times, the bill "would require nearly all Americans to obtain coverage or face a penalty of up to $3,800 a year for families."

Appearing yesterday in a forum held by the House Democratic Steering and Policy Committee, Potter testified:

The insurance industry is insistent on being able to retain what it calls "benefit design flexibility." Those three words seem innocuous and reasonable, but if legislation that reaches the president grants insurers the flexibility they claim they must have and requires all of us to buy coverage from them, millions more of us will have little alternative but to buy policies that appear to be affordable but which will prove to be anything but affordable if we become seriously ill or injured. . . .

The Baucus plan . . . would create a government-subsidized monopoly for the purchase of bare-bones high-deductible policies that would truly benefit big insurance. In other words, insurers would win, your constituents would lose.

It's hard to imagine how insurance companies could write legislation that would benefit them more.

In other words, rather than being regulated, the health insurance industry would be free to maximize its profits, while it's large pool of captive customers would be the ones being regulated. Charming. This is what I meant when I said that "this legislation . . . could be very good. Or it could be very, very bad." Uh, this would be the "very, very bad" option. Unless, of course, you are a stockholder in the insurance industry cartel, in which case it is a veritable wet dream.

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So, please call your representative—again—and demand real health care reform with a robust public option. No co-ops, no triggers. Ask if you can count on your representative to vote only for a strong public option and to vote against any bill that doesn't have a strong public option. Here's the number:

(202) 224-3121

Then report your call here. Thank you.