Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

ProSense

(116,464 posts)
Tue Mar 6, 2012, 12:29 PM Mar 2012

Wendell Potter Agrees: Big-Profit Health Insurance Almost Dead

Wendell Potter Agrees: Big-Profit Health Insurance Almost Dead

by james321

It is heartening to read that Wendell Potter agrees with Rick Ungar and other commentators that the death of big-profit health insurance is near at hand:

Aetna CEO Mark Bertolini caused quite a stir when he said at a Las Vegas conference a few days ago that the insurance industry as we know it is, for all practical purposes, a dinosaur on the verge of extinction.

Time to sing, “Ding dong the witch is dead”? Not quite, but the day when most Americans get their coverage from what we think of as an insurance company is close at hand. It won’t be long before most of us get coverage through either a state or federal government-run plan or a local nonprofit company. The big investor-owned corporations like Aetna and the companies I used to work for, Cigna and Humana, know that the days of making a killing off of basic medical insurance policies are over. And the companies have no one to blame but themselves and a fatally flawed, uniquely American system of providing access to care.

<...>

Yup, it does indeed appear that the moral arc of the universe bends towards justice, to borrow King's words -- the immoral practices of denying the sick, declining the sick, dumping the sick and ignoring the sick that were the source of so many riches for the likes of Aetna and Cigna are now coming to bite them...err...kill their golden goose:

Ever since the health insurance industry came to be dominated in recent years by a handful of big for-profit corporations, insurers have actually been driving away customers and shrinking the universe of people they were willing to cover, because of the return on investment and the profit demands of the large institutional investors that own most of the corporations’ shares. It is because of those demands that insurers price their premiums beyond the reach of millions of Americans. It is because of those demands that insurers reject on average a third or more of all applicants because of “preexisting conditions.” And it is because of those demands that insurers have routinely canceled the coverage of thousands of policyholders when they got sick. Now you know why more than 50 million of us are uninsured. It is not because most of those people are being irresponsible. Most of them either can’t afford to buy coverage or can’t buy it at any price.

Wendell also drops a nice nugget of proof that premium rises really are about nothing other than more profits for Wall Street:

As a former managed-care analyst was quoted as saying in Barron’s last October, “There’s no organic growth left in this business except for pricing.”

In other words, the only way that insurers can continue to satisfy their Wall Street masters is by raising prices on poor, vulnerable, sick people.

- more -

http://www.dailykos.com/story/2012/03/06/1071589/-Wendell-Potter-Agrees-Big-Profit-Health-Insurance-Almost-Dead
13 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

zipplewrath

(16,646 posts)
2. "As we know it..."
Tue Mar 6, 2012, 12:42 PM
Mar 2012

There is a change coming in the insurance markets, but they will still be there. Depending upon how the exchanges are ultimately set up, and work out, it may be a case that the health care providers get into the game a bit. There will be plenty of corporations interested in making 15% profit, and even more that will be interested in 15% of a market that is estimated to grow at 7% per year. It won't be what we've known, but they won't be gone.

mike_c

(36,281 posts)
3. THIS is why I despise the insurance mandate in Obama's wealth insurance reform....
Tue Mar 6, 2012, 12:43 PM
Mar 2012

It's a desperate last gasp to save a corrupt and vile industry. I really really really hope the supreme court throws it out with extreme prejudice! There is no justification for propping up these immoral corporate blood sucking shitheels.

ProSense

(116,464 posts)
5. I don't
Tue Mar 6, 2012, 12:56 PM
Mar 2012
THIS is why I despise the insurance mandate in Obama's wealth insurance reform....

It's a desperate last gasp to save a corrupt and vile industry. I really really really hope the supreme court throws it out with extreme prejudice! There is no justification for propping up these immoral corporate blood sucking shitheels.

...see it that way. I think people have overstated the connection between the mandate and the insurance companies. Given that most people already have insurance via their employer, most of the newly insured will be among those who want coverage, but have been denied and those who do not have coverage through an employer. In fact, as the OP states: "It won’t be long before most of us get coverage through either a state or federal government-run plan or a local nonprofit company."

mike_c

(36,281 posts)
9. no, what most of those people want is affordable access to health care that won't be denied...
Tue Mar 6, 2012, 01:10 PM
Mar 2012

...the first time they try to use it. What they want is the simple ability to see a doctor when they get sick or injured, and to receive care until they've recovered. It's bogus to suggest that this means they "want (insurance) coverage." They want access to affordable health care. Period.

The insurance companies have largely CAUSED the access problem by insisting that it be coupled to their institutional investors' profits and their executives' compensation. Insurance corporations are not the solution to the problem-- they're its cause. No solution that mandates their increased or continued profitability is sufficient, IMO. They need to be cut out of the picture entirely.

ProSense

(116,464 posts)
10. And
Tue Mar 6, 2012, 01:17 PM
Mar 2012

"no, what most of those people want is affordable access to health care that won't be denied..."

...most people aren't going to get that if they "get coverage through either a state or federal government-run plan or a local nonprofit company"?

The mandate doesn't kick in until the exchanges are up and running. The trend Potter is describing is already underway, and Ungar's point is key.

TheKentuckian

(25,029 posts)
6. Maybe but the Wealthcare and Profit Protection Act throws them on life support
Tue Mar 6, 2012, 12:57 PM
Mar 2012

and quite a profitable life support with mandated subscribers and a key to the treasury to get what they can't squeeze out of poor and working folks for a generation, at least.

The cartel has been propped up and is on the most sustainable trajectory it has enjoyed in many years, the migration of the baby boomers to Medicare along with a model the increasingly priced more and more people out was a collision course with suicide but they have been thrown a super powered life preserver and long term may be able to finagle a scam that let's them capture more and more of that senior business, if they can socialize the downside by getting huge subsidies and/or leaving a shell of Medicare that takes on catastrophic costs.

ohheckyeah

(9,314 posts)
7. I'm dropping my heath insurance
Tue Mar 6, 2012, 12:58 PM
Mar 2012

this month because they went up $100 a month AGAIN. In 6 months I'll try applying for a government plan of some kind.

I just can't afford it but it's scary to not have it.

MissMarple

(9,656 posts)
11. kos links to Rick Ungar's article. It is definitely worth a read.
Tue Mar 6, 2012, 04:54 PM
Mar 2012
http://www.forbes.com/sites/rickungar/2012/02/23/single-payer-health-care-is-coming-to-america-are-we-ready/


Also, his article about the phenomenal health care in Grand Junction, Colorado is a must read. The area doctors created a system that treats pretty much everyone. A non profit pays them and they do not know what kind of insurance their patients have. There is peer review one is less tempted to "churn the system" adding excess costs. Everyone benefits, even the harder to treat populations, even the ones generally viewed as noncompliant in taking care of their health. People tend not to postpone care for emerging health issues. It's, relatively speaking, a thing of beauty in our sometimes grim health care system outcomes.

http://www.forbes.com/sites/rickungar/2011/11/27/consumer-driven-healthcare-proponents-finally-proven-wrong/

Skidmore

(37,364 posts)
12. I'm personally sick of all insurance.
Tue Mar 6, 2012, 05:02 PM
Mar 2012

If we had all the money we socked into insurance policies in our lifetime, we would have substantial savings.

midnight

(26,624 posts)
13. Ins. companies, Potter said, "support the ACA because the individual mandate guarantees them
Tue Mar 27, 2012, 10:53 AM
Mar 2012

millions of new customers. In part because of the industry’s support, Potter expects the ACA to be upheld by the “very political” U.S. Supreme Court, despite challenges from conservative Republicans and business groups that have questioned its constitutionality."

Potter told a coalition of liberal-leaning advocacy groups and policy organizations on Wednesday that supporters of the Affordable Care Act must be well informed and speak with one voice in defending it against powerful groups that seek to overturn it or undo the key consumer protections it contains.

The ACA “is far from perfect but it is a strong start and already making improvements in the lives of Americans,” Potter said, speaking to the first formal meeting of a group known as the Health Care for Maine Alliance. The group met at the Maple Hill Farm conference center in Hallowell.

For example, Potter said insurance companies can no longer refuse to cover children with pre-existing medical conditions, small businesses get new tax breaks for offering coverage to their workers, young adults can stay on their parents’ policies until they turn 26, and the infamous “donut hole” coverage gap in the Medicare Part D prescription gap is closing.

In 2014, health insurance market places known as “exchanges” will help consumers choose affordable coverage that works for them, just in time to comply with the ACA’s “individual mandate” that requires most Americans to have health coverage or pay a penalty.http://bangordailynews.com/2011/10/05/health/insurance-whistle-blower-potter-speaks-in-support-of-obama-health-reforms/

Latest Discussions»General Discussion»Wendell Potter Agrees: Bi...