Ron Knapp

Actually it’s much, much worse.

We have a reimbursement platform that pays providers for 3-4% over the cost of care, called Medicare.

Private insurers slather on overhead of 30% on average, with 22% best case (Kaiser) and 50% (some Aetna lines with which I’m familiar).

Turn the telescope the opposite direction. With $1.2-1.4 trillion in private health insurance premiums, that works out to $300-450 billion year paid for absolutely no medical care. That would pay for excellent health care for 90 million Americans – more than enough to cover all Americans as well as improve the payments to doctors and improve the coverage for those currently insured.

Under Baucus plan costs will continue to spiral, tax payers will fund much of the spiraling, there will be no way to control deficit consequences of this, and the whole system will end up in even worse shape than it is in now…which is saying something. There is ALWAYS rationing of medical care. We need to ration it a lot more rationally than we do now, which can only be done if costs are managed.

The fact that Baucus supports a bill that by definition channels public funds to companies that give him lots of money is not, prima facie, evidence of corruption, but it is certainly evidence of a state-of-mind that seems highly inappropriate for a person who has a lot of power over what will happen to our health insurance system. He is in a lucky electoral position – a Democrat from a Republican state who gets 60% of the vote in elections. He is not likely to be punished if his plan gets through, no matter how damaging it is. The whole thing stinks.

I am curious about the role of the Podesta Group (http://www.opensecrets.org/lobby/firmsum.php?lname=Podesta+Group&year=2009), which apparently holds close ties to centrist democrats while still receiving huge amounts from big pharma. What is their position on the health care and more in particulat the public option? Which senators and congress members do they have access to?
(Full disclosure: I am writing a piece on the lobbying of Novo Nordisk Pharmaceuticals for Danish newspaper). Thanks again for posting this.

Anders Pedersen

The two issues at the nexus of all of the needed legislation in this nation are campaign finance reform and media consolidation. The status quo buys the politicians and owns the media sources to keep the ignorant public misinformed.

The issue of preexisting conditions is only addressed by saying that the “health co-ops” can’t exclude anyone. So the end result will be that the co-ops go bust as the insurance companies leverage out their most sick cases and these folks get picked up by the “co-op”. A year later the Republican anaylysis is that the “see, the co-ops” are bankrupt but look how efficient the private sector is!”

People just don’t realize that the insurance industry is all about removing risk and the have armies of folks working this everysecond of the day. Sick patients are the worst risk around.

And who received his infamous proposal first -why K street and probably Jeff Forbes. What a surprise!!

I believe those with connections like this will still be effective in doing the right thing, IF they know they are being watched closely.

This type of work helps tremendously in that regard — knowing who to watch on what legislation.