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Category: Health Care (Page 6 of 8)

Going after the insurance companies

Anyone who wondering why health care premiums are exploding just needs to take a look at the insurance industry.

Schumer pointed to the profits of the 10 largest insurance companies — which shot up 428 percent between 2000 and 2007, from $2.4 billion to $12.9 billion — as a reason health care reform is needed.

The insurance industry has not been playing ball on reform, and now Senate Democrats are getting fed up.

With other industry groups pledging savings to help pay the cost of health care reform, Senate Finance Committee Democrats slammed insurers for holding out — and threatened to impose new fees on the industry that could cost it as much as $100 billion.

The Finance Committee members are currently hunting for hundreds of billions of dollars to help finance reform, and with the hospital and pharmaceutical industries having pledged $235 billion, the senators said it was time that the insurers paid their share.

“We need the insurance companies to step up to the plate and be part of the solution. Most of the negotiations so far, the insurance industry has been at the table but you can only sit there at the table with your arms crossed for so long,” said Sen. Chuck Schumer (D-NY).

Schumer and Sens. John Rockefeller (D-WV), Debbie Stabenow (D-MI) and Robert Menendez (D-NJ) pounded the insurers, who they portrayed as unwilling to help pay for reform even while they have enjoyed exploding profits.

“The insurance companies are the people who are just rapaciously, greedily and unstoppably making money by underpaying the patient, by underpaying the provider and by overpaying, therefore, themselves,” Rockefeller said.

We’re seeing a new urgency from the White House and other Democrats on the health care reform issue, and it’s refreshing to see them ratchet up the pressure on the insurance industry.

House Democrats release health care reform proposal

Health care month is here. President Obama wants the House and the Senate to both pass health care reform bills before the August recess. It will be very difficult to get his done, but the House made progress as the Democrats released their proposal yesterday.

Liberal commentator Ezra Klein likes the proposal.

The Process Is the Message: Three separate committees — Energy and Commerce, Ways and Means, and Education and Labor — have come together on one bill. This is an incredible achievement. If you read histories of the 1994 health-care reform fight, all of them have a substantial section on the committee crack-up: One passed a version of single-payer, another a variant of Bill Clinton’s reform, another went further to the right. There was no unity.

There is unity now. And if it holds — if the House of Representatives manages to pass this plan with a substantial majority of enthusiastic Democrats — that significantly strengthens the House’s hand in its eventual negotiations with the more fractious Senate. That’s a big “if.” But so too would have been the idea that three separate committees could cooperate on a bill of this size.

The House proposal includes a tax surtax to help pay for the bill.

If I’m reading this correctly, about half is paid for through $500 billion or so in savings from Medicare and Medicaid. The rest comes from a surtax on the richest 1.5 percent. The surtax is 1 percent on income between $350,000 and $500,000; 1.5 percent on income between $500,000 and $1,000,000; and 5.4 percent in income above $1,000,000. The surtax can vary if the bill is less or more expensive than initially anticipated. There are also revenue expectations from the employer and individual mandates, though they’re relatively modest ($200 billion over 10 years is one estimate I’ve heard).

I’m not a big fan of this part of the proposal, though it’s important to get something on the table. Obama’s proposal to limit charity deductions for high-income taxpayers made more sense. A small surtax in the neighborhood 1% would be fine, but going up to 5% seems like a bad idea.

I would much rather see a tax on soft drinks. Liberals don’t like it because it’s regressive, but as we’ve seen with cigarette taxes an increase in price does affect consumption, and the American people are getting way too fat. That alone contributes to our soaring health care costs, so a tax on sugary drinks, just like taxes on alcohol and cigarettes, makes sense when we’re considering ways to fund health care reform.

Perhaps a compromise can be struck where we include a much more modest surtax along with a soda tax.

Negotiations get tough on health care

Can Harry Reid get health care through the Senate? it will be a very tough battle, as Roll Call points out in this excellent article summarizing the current state of the negotiations. Reid seems to be feeling the pressure from the liberals in his caucus, as he’s instructed Finance Chairman Max Baucus to stop trying to please Republicans.

Senate Majority Leader Harry Reid (D-Nev.) on Tuesday strongly urged Finance Chairman Max Baucus (D-Mont.) to drop a proposal to tax health benefits and stop chasing Republican votes on a massive health care reform bill.

Reid, whose leadership is considered crucial if President Barack Obama is to deliver on his promise of enacting health care reform this year, offered the directive to Baucus through an intermediary after consulting with Senate Democratic leaders during Tuesday morning’s regularly scheduled leadership meeting. Baucus met with Finance ranking member Chuck Grassley (R-Iowa) on Tuesday afternoon to relay the information.

According to Democratic sources, Reid told Baucus that taxing health benefits and failing to include a strong government-run insurance option of some sort in his bill would cost 10 to 15 Democratic votes; Reid told Baucus that several in the Conference had serious concerns and that it wasn’t worth securing the support of Grassley and at best a few additional Republicans.

By Tuesday afternoon, the Finance Committee began looking at ways other than taxing health benefits to deliver a health care overhaul that costs less than $1 trillion and is deficit-neutral, as Baucus wants. Baucus’ office declined to comment, but Senate Budget Chairman Kent Conrad (D-N.D.), a key member of Finance, confirmed as much late Tuesday.

“I would say there’s a search for alternatives,” Conrad told reporters. “There’s been feedback. There’s been additional questions in terms of getting the votes and public support.”

I’m surprised to hear Reid taking such a tough stand, but Democrats are fed up with the bi-partisan approach. Taxing benefits is a bad idea, and they need to look for other ways to fund this. I’m in favor of taxing soda and other crap that big companies sell and market to kids. Would it kill us to pay a little more for pop?

Naturally, any push by the Democrats to get this done with a public option and without the support of Republicans will also make it more difficult for moderate Democrats to support the bill, but it was encouraging to hear Ben Nelson praise Reid’s efforts. Nelson is always a tough vote.

“Harry is the leader, and people certainly pay attention to Harry’s advice and leadership,” Sen. Ben Nelson (D-Neb.) said. “I’m sure he’s going to find a way to sell what needs to be done. … He’s very good at that, and I hope he’s able to do it.”

Stimulus money goes to community health centers

More jobs and better health care.

President Barack Obama has been vague about details of his healthcare reform efforts, but he provided a hint on Monday of one direction he could take — community health centers.

As he announced the nominations of his two top health executives, Obama highlighted the allocation of $155 million to 126 community health centers as part of the $787 billion economic stimulus package.

“These health centers will expand access to care by helping people in need — many with no health insurance — obtain access to comprehensive primary and preventive health care services,” Obama told a news conference.

“That helps relieve the burden on emergency rooms across the country, which have become primary care clinics for too many who lack coverage — often at taxpayer expense.”

The Health and Human Services Department said the money would create 5,500 new jobs and help provide health care to an estimated 750,000 low-income Americans.

Gary Pickens, chief research officer for the Healthcare business of Thomson Reuters, a division of Thomson Reuters Corp, agreed the centers relieve overburdened hospitals.

“Hospitals currently have overcrowded emergency departments and would probably prefer to see care given in more appropriate settings for conditions that don’t require hospitalization,” Pickens said in a telephone interview.

This addresses one of the most pressing problems facing our health care system. Emergency rooms are overcrowded, as too many Americans without health insurance rely on them for care. Community health centers can help handle many of these cases, and they provide better care as they are organized to handle primary health services as opposed to emergencies.

More money is on the way.

“Over the next two years, a total of $2 billion in Recovery Act funding will be invested in Community Health Centers to support renovations and repairs, investments in health information technology, and critically needed health care services,” HHS said in a statement.

These are the types of “investments” that contribute to the common good. It attacks the inefficiencies in the current system while improving the quality of care.

Do Republicans really want to oppose Sebelius over abortion?

This might be a case of CNN predicting a fight that won’t take place, but conservatives and Republicans are crazy if they pick this fight now.

Analysts suspected that Obama would face a battle over abortion if and when he makes a nomination to the U.S. Supreme Court, but religious conservatives could use Sebelius as a warm-up for the seemingly inevitable fight.

Calling Sebelius an “enemy of the unborn,” Catholic League President Bill Donohue said the Kansas governor’s nomination is particularly disturbing because the health and human services secretary is one of the few members of the administration who can directly affect abortion policy.

“Sebelius’ support for abortion is so far off the charts that she has been publicly criticized by the last three archbishops of Kansas City,” Donohue said in a statement. Video Watch why filling the Cabinet post is urgent task »

The liberal group Catholics United has come to Sebelius’ defense, saying the Kansas governor has taken several steps to lower the abortion rate in her state. The group also has posted excerpts of a 2006 speech in which Sebelius said she opposed abortion.

“My Catholic faith teaches me that all life is sacred, and personally I believe abortion is wrong,” she said then. “However, I disagree with the suggestion that criminalizing women and their doctors is an effective means of achieving the goal of reducing the number of abortions in our nation.”

In May, Archbishop Joseph F. Naumann of Kansas City, Kansas, said that Sebelius’ stance on abortion had “grave spiritual and moral consequences.” He asked that Sebelius no longer receive Communion until she repudiated her stance and made a “worthy sacramental confession.”

Naumann was reacting to Sebelius’ veto of state Senate Bill 389 and the subsequent House version, titled the Comprehensive Abortion Reform Act, either of which would have tightened abortion regulations in Kansas.

In shooting down SB 389 in April, Sebelius wrote that the bill was problematic because it included no exceptions for pregnancies that endanger a woman’s life and it allowed for individuals to seek court orders preventing a woman from obtaining an abortion, even if the procedure was necessary to save her life.

“I am concerned that the bill is likely unconstitutional, or even worse, endangers the lives of women,” Sebelius said in a statement.

She further said that Kansas had striven to lower its abortion rates through adoption incentives, extended health services for pregnant women, sex education and support services for families.

Another lightning rod for Sebelius is a 2007 reception she held for Dr. George Tiller at the governor’s mansion in Topeka. Tiller, who specializes in late-term abortions and who once received the National Abortion Federation’s highest honor, is presently facing charges relating to his practice.

Last month, a district judge denied a motion to dismiss the case, meaning Tiller will go to trial on 19 misdemeanor counts relating to how he procured second opinions for late-term abortions, according to The Wichita Eagle.

Though Sebelius is dogged by many on the religious right, GOP Sens. Sam Brownback and Pat Roberts of Kansas seem willing to give her a pass on her stance on abortion.

Brownback, who sought the GOP presidential nomination and is one of the leading anti-abortion voices in the Senate, recently released a statement with Roberts, congratulating Sebelius and expressing an eagerness to work with their fellow Kansan on health issues.

The reactions from Brownback and Roberts suggest that cooler heads will prevail, and that we won’t get a sideshow on abortion at a time when both sides will be debating health care reform.

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