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Hah! Schumer to Health Insurers - Pony-Up or Shut Up!
Yeah ... Chuck's Laying it Out . . . Insurers May Face Fees to Help Fund U.S. Health-Care Overhaul
July 16 (Bloomberg) -- Insurance companies should use their profits to help fund as much as $100 billion of a landmark overhaul of the U.S. health-care system, senators including Democrat Charles Schumer of New York said.
--snip--
It was criticized by America's Health Insurance Plans, a Washington trade group that represents the industry.
"As families and small businesses struggle during the current economic slowdown, now is not the time to impose new fees on health-care coverage that will make coverage less affordable," Robert Zirkelbach, a spokesman for the group, said in an e-mailed statement.
During their press conference, Democratic senators said insurers should pay at least $75 billion to help finance the legislation. They cited industry earnings, with Robert Menendez of New Jersey saying the companies are making profits "on the backs of American families across this country."
'Not Fair'
"Every other industry is kicking in," Schumer, 58, said. "For the insurance industry to stand aside is not fair."
Schumer said the top 10 U.S. health insurers saw profits jump by 428 percent between 2000 and 2007.
"That profitability is enough to make big oil executives blush," Schumer said. (continues)
bloomberg.com/apps/news?pid=20601103&sid=aIoDa2C7wCKo
Yessirree . . . 428 percent increase in profits between 2000 and 2007?
Lay it all out and let the people know how much they've been getting screwed by these weasals.
~OGD~
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Now you got my blood boiling at 2:30 AM in the Midwest. I mean THIS IS NUTS.
We must remember OGD, there are GOOD PEOPLE in Congress...really fine people.
That is why I have not lost hope.
Thank you for this great post!!!!
July 16, 2009 3:26 AM | Reply | Permalink
This is by far the best idea I've read so far...
Thanks!
July 16, 2009 9:05 AM | Reply | Permalink
The problem with that idea, essentially, taxing the insurers to help fund healthcare, is that they can recoup such tax losses by the further raising of premiums. Pretty much as Robert Zirkelbach says. While maybe satisfying our sense of justice, this solution would undoubtedly produce a never ending cycle of price increases that would make us all nostalgic to have that 428% figure again.
What we need is a mechanism which produces a cycle of price reduction. That is why Obama's idea of a government option is so important. It would provide the kind of competitive cost reducing pressure which apparently is so lacking in the health insurance industry right now.
July 16, 2009 9:58 AM | Reply | Permalink
Well ...
Everybody else is seeing the oncoming train and pulling their own weight to assist on reducing costs and ponying up concessions, why not the health insurance corporations? Unadulterated GREED?
The insurance weasels can Put-up ... or Shut-up!
~OGD~
July 16, 2009 10:54 AM | Reply | Permalink
I share your sentiments regarding this industry: http://tpmcafe.talkingpointsmemo.com/talk/blogs/new10/2009/07/healthcare-right-or-priviledge.php#comments
The problem is that a windfall tax would result in no net gain for healthcare consumers. The insurers will merely pass on any windfall tax to consumers in the form of higher premiums. Count on that. What must happen is that the costs of healthcare must be reduced. The key problem costs due to insurers, hardly the only problem group, are exorbitant profits, and executive compensation packages due to exorbitant profits. That fact just screams, "lack of effective competition".
I argued in my linked post above, that 'for profit' health insurance is morally objectionable and should either be eliminated altogether (replace by gov't or non-profit entities), or should be regulated on some 'cost plus' utility like model.
One of the less immediately obvious advantages of a 'cost plus' model is that it would encourage the payment of benefits. Benefit payments are among the operating expenses of insurers. The more they pay in benefits, the more they could keep in profits, since profits are typically set at a percentage of expenses (costs), in a 'cost plus model.
July 16, 2009 12:38 PM | Reply | Permalink
One More Little Thingy . . .
If nothing else, you can bet the house that Schumer's stance here has rattled the weasel cage of these corporations and makes them have to deal, one way or another.
That's why I say, Pony-up... or Shut up.
~OGD~
July 16, 2009 8:43 PM | Reply | Permalink
Hmmm...
Schumer might just be on to something. This could scuttle the whole plan. I'm excited, is anyone else?
July 16, 2009 11:48 AM | Reply | Permalink
Thanks OGD, one good thing about this health care fight is that a lot of eyes are being opened to what's been going on in our health system, people are getting a long needed education. The line is drawn and folks can see on which side anyone stands. The actual danger of lobbyists dating our congress people has also been exposed.
July 16, 2009 11:51 AM | Reply | Permalink
Nice aim. Lobbying reform is more important than legal reform.
I remember the first distinction voiced on this evening:
http://www.youtube.com/watch?v=7-W4GWjN2kg&feature=related
July 16, 2009 12:31 PM | Reply | Permalink
Schumer rawks. When my ultra-conservative sister once told me I sounded "as crazy as Schumer" during one of our political discussions, I took it as a compliment. And rightly so.
Now, if the health insurers think they can raise rates if they have to pay these "new fees", they got another think coming. Instead of raising any rates, they should be lowering their CEO salaries and bonuses instead!
July 16, 2009 6:02 PM | Reply | Permalink
How about if they just have to pay the same amount that they are spending on lobbying to protect themselves? What is it so far? A million dollars a day? That would probably fund health care, doncha think?
You betcha, doggone it!
I have two words for the "insurance" industry: FUCK YOU!
July 16, 2009 8:19 PM | Reply | Permalink
And ... If you don't mind Jan . . .
Allow me to add five more words to that: WHERE THE SUN DON'T SHINE!
~OGD~
July 16, 2009 8:49 PM | Reply | Permalink
But MiddleClassBill said taxing the rich isn't fair...
July 17, 2009 12:58 AM | Reply | Permalink