It has been weeks since I have published any new articles on health care reform.    I wanted to get out a general update out to those that read my interpretations.    It’s hard to latch on to a general theory or pattern since the House version was dead when it ...

The coming health reform bill, (please pardon my reference to this bill as being related to actual health reform) is going to garner the support of AARP.    I felt the need to vent on my opinion as to why.

Health insurance and health care is a very tricky and confusing subject.  Let me admit publically, if I haven’t before, I wouldn’t have a career if health insurance was easy.   One might argue that my bias would be to promote my own agenda.   I respect that potential conflict and have never taken issue with anyone questioning my ethics.   I purposely steer clear of any opinion on subjects that would impact, either positively or negatively, my income.   That said, other special interest groups do not appear to be as noble.   Thus, the subject of today’s blog post, those good folks at AARP.  

AARP is a special interest group with interests in Media, Insurance, and Financial products. AARP is  bigger than most regional health insurance companies  and has the largest circulation of any magazine.    They don’t represent themselves as a magazine company like TIME, an Insurance company like Aetna or United Healthcare, A mutual fund company like Fidelity, or even a federally funded private company .   Yet they are all of these.   Their public policy, allegedly representing the wholesome interests of seniors, is really just another marketing group profiteering off the backs of seniors.  Business week Magazine wrote in 2005 that their products are typically not scrutinized for cost and quality.  

AARP public policy has consistently stood on the side of issues that increase its revenue and profit.   Over the past 10 years, AARP has increased their insurance revenues by several hundred percent.   They did so by branding and associating their name with insurance products from United Healthcare and Aetna.   When Medicare Part D – the  Rx Drug part of social security, they were obviously advocates for the program, but were also positioned to add hundreds of millions of dollars in revenue to their income statement, per yet. They did, and good for them too!   They are a very successful business and they continue to brand themselves in ways to increase revenue and profitability.     What AARP is not, is a social conscience.  Much like a Union tries to negotiate on behalf of its members for the most possible without being concerned for the profitability of the owners, AARP lobby’s for interests that are good for their own bottom line.  

One of the main arguments from insurance companies, and against this reform bill, is the level of benefit funding for Medicare Advantage Plan members .   The insurance companies were not only criticized for telling their members that Government cuts would result in benefit cuts,   HHS actually issued a gag-order preventing insurance carriers from disseminating that information to its members.   It was seen as a conflict of interest with questionable conclusions. 

Those who have Medicare Advantage plans, have no need for a Medicare Supplement.  Thus millions of seniors who took Medicare Advantage coverage from insurance companies, do not need or buy a Medicare Supplement from AARP.   “Coincidentally”, those  millions of seniors who get Medicare Advantage  benefits from insurance companies, and who’s benefits stand to be cut significantly with this reform bill, don’t appear to be represented in AARP policy papers.  Not one single article from AARP this year on the negative impact from the health bills.   If Medicare Advantage benefits are cut, the prospect of millions of seniors abandoning this coverage will then need a Medicare Supplement.   Hey!!! AARP sells that !!!  

Medicare.gov, a government website describes Medicare Advantage plans as “They generally offer extra benefits, and many include prescription drug coverage”.  So  why doesn’t AARP care about these seniors?   It seems easier to understand if you consider that AARP is not a social conscience, but a financial services and insurance company.

If you assume that I might have a bias, I would also assume that a company whose royalties tripled after Medicare Part D passed, and who would stand to increase revenues by as much as $400 million per year if the House Health care bill is made law, might have a biased opinion. 

AARP is disingenuous and their endorsement of the House Bill is self serving.  Shame on AARP.      

I started this blog this past summer to promote intelligent discussion about health care reform issues and points.   Over the past couple of months health care reform, as crafted by the Democratic party, has degraded into nothing more than an assault on anyone that has the money to pay more taxes.    Those that object, or raise arguments against legislation are targeted with tags of villianization, taxes, surcharges or all of the above.  

In September, Health insurers were issued gag orders forbidding them from communicating objections to legislation.  When the Public option, which I call the “pay the government instead option” was met with resistance by seniors and providers, legislation to cut $500 billion in Medicare benefits and providers was introduced.    For those providing insurance, medical equipment or services, $40 billion a year in new taxes starting in 2010.   (Guess who really pays?  The consumer)  The argument that legislation will cut the deficit by $80 billion is advertised,  the fact that there are $1 trillion in new taxes is trivialized.

The number of updates to my Blog has dwindled over the past couple of weeks.  The Truth is that I just can’t keep up with the silliness from D.C.  

·         11% of Federal Employees entitled to the same medical plan that Congress and the President have, are uninsured.    Can’t afford it. 

·         The much maligned October 2009 study from PriceWaterhouse showing that the impact of health insurance costs if the bill passes, for a family, rising $4,000 more than if the legislation was not passed has caused trouble for the industry.   I agree that the study was overkill and not without questionable assumptions.   What I know is not overkill.  Without gender based pricing, which will no longer be allowed,  and with maternity benefits mandatory,  a 29 year old male in Chicago will instantly see his premium go, for a $500 deductible plan from a current $197 to more than $325 per month.   That assumes no inflation, no change in reimbursement rates to doctors, stable premiums, and a 15% discount for everyone having the benefits.   

·         Hay Dare!   The Canadian System - 

o   In 2005, the Supreme Court of Canada struck down the ban on Private Insurance stating “"Access to a waiting list is not access to health care,".  I Suspect that any health care reform in the US will give you guaranteed access to a waiting list. 

o   In 2006, the national health policy goal, of 75% of those needing bypass surgeries. getting the operation within 180 days of diagnosis, was not even met by two provinces.  

o   Here’s an interesting Canadian Company. http://www.timelymedical.ca/about-us.html.  Why do they exist and can I get a US franchise?

o   The Code word to get an MRI in Canada is “Meow”.   See this Sept 2009 story from ABC’s 20/20 on YouTube.   

·         Medicare Advantage Plans - This is when seniors opt out of Medicare to take a private insurance plan that gives them all the benefits of Medicare plus additional benefits like drugs, dental, vision and hearing benefits.   A senior on “Medicare Advantage” Plans pays little or no premium to the insurer.  They don’t pay the $97 for Medicare Part B, they don’t pay the $125-250 for a Medicare Supplement.   These plans cost the government 14% more than straight Medicare.   That 14% will be cut, and benefits to those members will be cut.    It saves the government $100 billion over ten years, but it will result in those least able having to pay as much as $300-$400 month extra to replace those benefits.    

·         Cut the Deficit by $81 Billion says the CBO - What I don’t understand is why $900 Billion in new taxes, higher medical premiums to the public, and $500 billion in Medicare Cuts don’t result in $1.4 Trillion in deficit reduction.   How about we just cut $500 billion from Medicare and cut the deficit by $500 billion.   If that was doable, it would be done.  It’s not.   The $81 billion assumption assumes that in 2011, Medicare reimbursement rates will be reduced by nearly 26%, and that those reductions will stick, year after year.  Uh-Huh! 

·         Reasonable People will cancel their health Insurance December 31, 2012.   Get your letters ready.   

o   The president of the National Association of Health Underwriters, an organization representing more than 100,000 health insurance agents, on October 14^th, 2009 told his audience that costs for insurance will rise at a greater rate than without legislation.   He also told that audience that he believes that reasonable people will continue to have health insurance after reform legislation.   I agree that that costs will rise.   I do not agree that reasonable people will retain health insurance.  

o   Assuming you pay for your own insurance, and currently pay about $15,000 per year in premium, why would you continue to pay for insurance?   If you don’t have insurance, you will pay a $600 fine, maybe.  (Maybe because the excise tax is only collectable on tax refunds and they will not accrue penalties or interest).  If you need insurance, you can get it, ON DEMAND, without a preexisting condition clause.   Hmmm… Spend $15,000 even if I don’t need it, or a $600 tax…. When I need it, I am guaranteed to get it.  Well, I must have missed the continuing education course that says “reasonable people” is synonymous for “sucker” in insurance-eze.

·         Health Insurance executives limited compensation.  The new health care bill will include a provision that limits the tax deductibility of wages for health insurance executives from earning more than $500,000 per year.   And who can blame Washington for that?  After all wasn’t it the health insurers that took $700 billion in bailout money?  Wait, that was banking.   Or was it that they went bankrupt and the government had to subsidize a Cash for Klutzes program?   No… not them either… Well it must be that they are responsible for the mortgage mess?   High interest rates?  Soaring oil prices?  Gotta be something right?      In a related story, the average Major League Baseball player salary rose to over $3,000,000 this year.   

Well at least insurance agents will exist - In early bills; Insurance agents will be replaced by Government “Navigators”.   No it’s not a big Lincoln SUV.   It’s the term for the new 800 number outsourced to lots of “BOB’s and SUE’s” to help you with your insurance options.  That provision looks like it’s out of the current bills.   At least people like me will be here for a while to help you send in your cancellation letters to the insurance company.   (But not until 12/31/2012!)

Look for the "Public Option" to again gain traction in the next few weeks.

As someone who dedicates their life to best serving the needs of clients and making sure that they are adequately protected from the "real" holes in insurance, I am completely overwhelmed by the amount of disinformation and villianization of the entire health insurance industry.   I am equally shocked by the general lack of understanding of how the insurance system works, even on the most basic level. 

There is a growing and disturbing amount of propaganda appearing in conservative and liberal publications seemingly for no other purpose to sell media.    The lack of research people of authority or influence conduct before weighing in with an, all knowing, summary is, in my opinion, inciting.    Over the past week, I have stumbled on to two enormous articles with, an apparent, intentional misrepresentations of facts and reason.  

Representative Joe Wilson summarized the lack of respect that exists in our country towards those with other opinions by yelling at President Obama “Lie” during his address to a Joint Session of Congress and the nation.  

While I am not prepared to offer commentary on a bill that has yet to be proposed, I would like to address the issue that Rep. Wilson addressed in that one word.   Rep. Wilson yelled when President Obama said that there would not be benefits for people here illegally.   The rudeness aside, was he right? 

The Senate Health Care Bill has not yet been published, but a summary of the bill has been leaked.   The bill is probably passable with minor adjustments and lobbying efforts.  It will likely get the universal support of conservative Democrats, even some Republicans.  Those numbers will probably be larger than the number of defecting liberal Democrats who will undoubtedly be against the bill.  (Having Liberal Democratic objection, even boisterous at times, is a smart political move to gain Centrist support.)

I have argued since the introduction of HR3200 that the reason for the quick legislation was not about true reform, but rather addressing two issues that can’t be openly discussed in Washington. (ref:  Why is this happening now, so quickly? Is there a secret? 7/17/09). Those reasons?  A tax increase and rescission of the Medicare Revitalization Act of 2003, MRA 2003 was designed to slow medicare growth rates.  

Here are the two items that start in 2010: 

<< MORE >>