Democrats on a key Senate Committee outlined a revised and far less costly health care plan Wednesday night that includes a government-run insurance option and an annual fee on employers who do not offer coverage to their workers.
The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee. The AP obtained a copy.
By contrast, an earlier, incomplete proposal carried a price tag of roughly $1 trillion and would have left millions uninsured, CBO analysts said in mid-June.
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Additionally, the revised proposal calls for a $750 annual fee on employers for each full-time worker not offered coverage through their job. The fee would be set at $375 for part-time workers. Companies with fewer than 25 employees would be exempt. The fee was forecast to generate $52 billion over 10 years, money the government would use to help provide subsidies to those who cannot afford insurance.
President Barack Obama released the following statement about the plan:
For decades, Washington has failed to act as health care costs continued to rise, crushing businesses, families and placing an unsustainable burden on governments. Today the Senate HELP committee has produced legislation that lowers costs, protects choice of doctors and plans and assures quality and affordable health care for Americans. The Congressional Budget Office has now issued a more complete review of this bill, concluding that it will cost less and cover more Americans than originally estimated. It also contains provisions that will protect the coverage Americans get at work. When merged with the Senate Finance Committee's companion pieces, the Senate will be prepared to vote for health reform legislation that does not add to the deficit, reduces health care costs and covers 97% of Americans.
The HELP Committee legislation reflects many of the principles I've laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick. Such a marketplace would allow families and some small businesses the benefit of one-stop-shopping for their health care coverage and enable them to compare price and quality and pick the plan that best suits their needs.
Among the choices that would be available in the exchange would be a public health insurance option. The public option would make health care affordable by increasing competition, providing more choices and keeping the insurance companies honest.
The legislation also improves the quality of patient care, improves safety for patients and strengthens the commitment to preventive health care - preventing people from getting sick in the first place.
I thank chairman Kennedy, Senator Dodd, and all the members of the HELP Committee for their hard work on health reform.
You may recall that last month Sen. Tom Coburn released a 100 examples of waste to be found in the stimulus package. Included on that list, at #7 in fact, was the $9.38 million to be spent renovating the Amtrak station in Elizabethtown, Pennsylvania. At the time I wrote:
I do have to take exception with Coburn's 8th example, the rehab of a station along an AMTRAK line in Lancaster County, Pennsylvania. I do not know anything about the project, or whether the work is justified, but I do know that the Senator's argument is totally disingenuous:
Elizabethtown, located in Lancaster County, Pennsylvania, will spend more than $9.38 million of federal stimulus funds to renovate a 97-year-old train station building that has sat vacant for more than 30 years.
"I think from far away, it looks fine, but as soon as you get up closer and realize that it's not actually a station, it's kind of depressing," said train rider Maegan Demko.
When the renovation is complete, State Transportation of Secretary Allen Biehler provides reassurance that taxpayer money will be well spent. "(The station's) not just going to be a little monument that someone can look at on a museum tour - it's going to be used," Biehler said.
The station's platform currently serves more than 80,000 passengers a year along Amtrak's Keystone Corridor, meaning taxpayers will subsidize up to $117 per passenger to pay for the renovation. A one-way ticket from Elizabethtown to New York City, by contrast, costs just $45 per passenger.
That would be $117 per passenger if the station were to be used for just one year. But I'm going to go out on a limb here and suggest that the remodeling will last for 20, even 30 years - and at that rate, it will cost only $5.85 or $3.70 a passenger.
A reader, Bob K, frequently catches a commuter train from the Elizabethtown station, and sent me word that the local TV news was taping a story about the renovation on Tuesday. He also sent along this photo, as well as a description of the station and platform:
The station project is long overdue. Amtrak's Keystone Service is heavily used between Harrisburg, Philadelphia, and New York. Pennsylvania subsidizes ticket prices between Harrisburg and Philadelphia, so the cost is reasonable.
For as many people that use the station platform, the building needs to be reopened. As it is now, there are only bus stop shelter type enclosures for waiting. It will be a huge improvement to have a heated and air-conditioned waiting area, and bathrooms. Also, as it is now, the platform is not handicapped accessible. The parking lot is also horrible, full of potholes, and is always parked nearly full.
You can see the deplorable condition of the train platforms. Note that the umbrella shelters have rotted away, leaving only the stone supports and "tee" arms. The brick platforms are paved over with macadam, which is cracking and uneven, unfit for walking upon. You can also see the plastic bus stop type shelter on the right. Until recently, one of the white bubbles over the westbound shelter was missing, allowing rain to pour into one half the shelter.
Behind the far platform is the old freight elevator shaft, which I believe will be retained and refurbished to get handicapped access from the station level to the tracks, which are on a high fill in this area. Both the station and elevator shaft are built of gray stone masonry, similar to the Masonic Home, which is to the right, just off the picture.
The train is also indicative of Amtrak's problems. The train is running in the "push" mode, with the electric locomotive at the opposite end. The first car was built in the late 1960s, as part of the original Penn Central Metroliner order. It has had its traction motors removed, and now serves as a cab control car. It should probably be in a museum. The other four cars were built in the mid 1970s, and have been refurbished many times. The type of locomotive pushing the train was first delivered in 1979, and needs to be replaced. Amtrak has no bids out, to my knowledege, to replace any of this equipment.
I also note the wood steps on the platform edge to assist passengers in boarding.
WHP-TV (CBS 21) aired this informative report on the station, the passengers that use it, its current state of dilapidation, and the stimulus money to be used to renovate it:
This is exactly how the stimulus is supposed to work, rebuilding America's infrastructure. Hopefully Bob will occasionally send us some photos so that we can also see the progress of the renovation work.
Rep. Chellie Pingree will be joining over 25 groups and organizations, including the Maine State Chamber of Commerce, the American Lung Association, Maine Equal Justice, Maine People's Alliance, NFIB, Physicians for Social Responsibility and many others. Event is hosted by the Maine Medical Association and the Maine Hospital Association, for an event about health care/insurance reform today, a press release states. The event will be held at:
Maine Medical Association
30 Association Drive
Manchester
And Karl Malden has died. The actor, who had roles in Kiss of Death, On the Waterfront, Streetcar Named Desire, Patton, Birdman of Alcatraz, and who starred with Michael Douglas in TeeVee's Streets of San Francisco (and who didn't love that show?), was 97.
John Podesta, President & CEO President of Wal*Mart Stores, Inc., Andrew L. Stern, President of the Service Employees International Union (SEIU), and Mike Duke President & CEO of the Center for American Progress (CAP), have written a letter to President Barack Obama regarding health insurance reform. You'll find it below the fold in its entirety.
Jack McKay and Steve Husson of Food AND Medicine warn against FairPoint in September 2007
A cloud of doom hangs over the northern New England land-line telephone carrier. Today in the news a changing of the guard is reported "amid money problems." According to a story in the Montpelier Times Argus, Vermont has "hired a law firm with experience in corporate bankruptcy cases" to prepare to deal with the shaky company. As many critics warned in 2007, the financial terms under which the company was ushered in look to be exactly the losing proposition we all feared.
Meanwhile, in a June 24 filing with the SEC, FairPoint itself seems to counter its own happy talk about improving service with a dose of heavy reality,
Rep. Chellie Pingree was interviewed by Irwin Gratz this afternoon on MPBN. Here is a snippet from it:
REP. PINGREE: "One of my concerns as a policy maker and a politician is making sure that everyone has access to affordable health care.
"My #1 concern isn't making sure that CEO's and insurance companies [sic] make high salaries - and that insurance companies are highly profitable. I would like that to continue, but I would also like to use cost containment and other measures that I think will make all of us generally healthier.
"I think my job as a policy maker is figuring out how you can get health care coverage at the most affordable way possible.
"And so to have this debate go into, "Yeah, but it's our job to represent insurance companies." Who do we represent? I represent the American people and their basic health and frankly I just get frustrated as we go back to that as an excuse to not move forward."
[Update]: You can listen to the entire two hour call in program from which the above is taken via the audio archives at MBPN: On the Line.
Casey J. Porter (MySpce), veteran of the Iraq occupation and member of Iraq Veterans Against the War, has a new film out later this month, Fire Mission. Here is the first trailer for it:
Yesterday, on the comment board to this article about Sen. Snowe's take on the public option (in which Snowe explained, "If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market the public option will have significant price advantages."), someone that goes by the handle CommonCents used an example from Canada to argue against single payer.
In so doing he demonstrated how on top of our game we need to be to fight these folks.
From a site called Health Care BS, CommonCents cited the story of a pregnant Canadian woman - well, just read for yourself:
If Canada's national health care system is so dang wonderful, why are so many Canadians coming to America to pay for their own medical care?
And it's not only pregnant women, like the one who recently had to drive to Montana to have her baby, who cross into the U.S. on a daily basis seeking health care.
When you read this story it sounds like this woman, Karen Jepp, was forced to drive 325 miles in order to give birth because the Canadian system had failed her.
But when one digs a little deeper into the story (and I mean a little - it took me all of five minutes of research), one learns what really happened:
a) Karen Jepps was pregnant with FOUR fetuses, not one. And despite planning for their delivery with the hospital ahead of time, when she went into labor prematurely, the neonatal unit was over-full.
b) That the neonatal unit was full is an important part, as the babies weighed between 2 lbs. 6 oz. and 2 lbs. 15 oz. That's really tiny.
c) The hospital called around trying to locate the nearest neonatal ward with space, and the most convenient one was in Great Falls, Montana, USA, 325 miles away.
d) The big lie: Karen Jepps did NOT drive there. The Calgary Health Region FLEW her there, along with her husband and two care providers.
e) The outcome? Mother and all four babies are fine.
Toni MacDonald, director of child health for the health region, said the same delivery in Canada would have only cost $66,000.
"It is quite a bit more expensive, yes, to send mothers to the U.S. and again it is always our last resort," she said. "The decision is made based on a safety concern rather than a financial concern and that is always our No. 1 consideration."
This is the level of discourse that now embodies the extreme right wing of our nation (h/t MinistryofTruth). Via Media Matters, Michael Scheuer on the Glen Beck Show on FOXNews:
Think of the heat that President Obama took from GOP Members of Congress when he said that he would be willing to "talk to Iran." Will we see the same condemnation from the Republicans about this statement by Michael Scheuer?
Will Maine's two senators, who describe themselves as moderates, condemn these words?
A bigger jackass than Norm Coleman I am hard pressed to name. This has been my feeling towards the guy since 1996. Those were days we lived in my home state of Minnesota and Coleman switched from Democrat to Republican in order to better turn St. Paul (where he was mayor) into a corporate office park on the taxpayer's dime.
Below is my good riddance review of this awful man. Note how he appears alongside Senator Susan Collins in many of the items where their lack of oversight of U.S.-involved war corruption allowed Iraq (and the U.S. taxpayer) to be hammered while their hyper-attack on the U.N. over the 1990s Iraq Oil-for-Food program unfairly sullied reputations.
Health Care for America Now! reports that only two health insurance companies dominate Maine, with one holding 78% of the market. From the Executive Summary:
• WellPoint Inc., Maine's biggest health insurer, holds 78 percent of the state market. Together with Aetna Inc., they control 88 percent of the market.
Two insurers controlling 88% of the market means that there really is no competition amongst companies, and so this idea that consumers can shop for the best care and price is a pipe dream. Couple that with lax regulation, and well:
• From 2004 to 2007 Anthem Health Care, WellPoint Inc.'s Maine subsidiary, saw profit grow by 89 percent, from $40 million to $76 million, although its membership grew by only 2.4 percent.
• Health insurance premiums for Maine working families have skyrocketed, increasing 90 percent from 2000 to 2007.
• For family health coverage in Maine during that time, the average annual combined premium for employers and employees rose from $6,915 to $13,117.
• For family health coverage in Maine from 2000 to 2007, the average employer's portion of annual premiums rose 87 percent, while the average worker's share grew by 96 percent.
• From 2000 to 2007, the median earnings of Maine workers increased 17 percent, from$22,163 to $25,876. During that time health insurance premiums for Maine working families rose 5.4 times faster than median earnings.
It's no wonder that Sen. Snowe thinks that, "If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market the public option will have significant price advantages."
In this AP story, Sen. Olympia Snowe, with surprising candor, makes it clear who her real constituents are:
In an interview in Portland, Snowe said it would be unfair to include a government-run health insurance option that would take effect immediately.
"If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market the public option will have significant price advantages," she said.
Whom would benefit from these "significant price advantages?"
Why you would. And I would. And anyone using the public option would.
Because a government option would have no interest in making a profit, and so those savings would be passed directly to you, the consumer.
Furthermore, those using the pubic option would no longer have to worry about being denied coverage, or having their policy canceled (recision the insurance industry calls it). The fear of personal bankruptcy, of having to fight to keep your house while fighting your illness, would not be a worry.
But Sen. Snowe thinks that ensuring that the revenue stream continues to flow to the coffers of the private health insurance industry is more important than you are.
Perhaps you should call her and ask why. Contact info is in the margin at right.
I personally invite Sen. Snowe to argue her position in these pages. I will not edit her comments.
The cheapest and most reliable way fr our nation to work to break its reliance on fossil fuels is to simply use less energy. Conservation works, and the hardest part is for all of us to change the way we live a little. Yesterday, President Obama prioritizes energy-efficiency standards, announcing increased efforts at setting energy standards for appliances and other items, the Hill reports:
The president announced that the Department of Energy will accelerate the spending of a "$346 million investment under the Recovery Act to expand and accelerate the development, deployment and use of energy-efficient technologies in residential and commercial buildings."
"Between 2012 and 2042, these new standards will save consumers up to $4 billion a year, conserve enough electricity to power every home in America for 10 months, reduce emissions equal to the amount produced by 166 million cars each year and eliminate the need for as many as 14 coal-fired power plants," Obama said.
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"Now, I know light bulbs may not seem sexy, but this simple action holds enormous promise because 7 percent of all the energy consumed in America is used to light our homes and our businesses," Obama said. "And, by the way, we're going to start here at the White House. Secretary [Steven] Chu has already started to take a look at our light bulbs, and we're going to see what we need to replace them with energy-efficient light bulbs."
Out on Vinalhaven, an island 12 miles off the coast of Rockland, there was a ground breaking ceremony for a new renewable electrical power plant, as islanders celebrate wind power:
Hundreds of islanders gathered Monday morning at a 75-acre construction site in a misty spruce forest to celebrate the groundbreaking of the Fox Islands Wind project.
By next Thanksgiving, developers said, three turbines here will take advantage of the high offshore winds to produce enough electricity to provide power to the 1,500 year-round residents of Vinalhaven and North Haven islands. And many think that when the windmills are whirring on Vinalhaven, other island communities will want turbines of their own.
This project formed the presentation by George Baker at the recent Energy Ocean 2009 Conference, more on which you can find here.
The AP has another story about Sen. Olympia Snowe and her role in the health insurance reform debate, and at least she speaks plainly:
Maine Sen. Olympia Snowe, a key figure in shaping federal health care legislation, says a government-run plan that would take effect if the private insurance market fails to deliver affordable coverage could bridge the partisan divide that threatens to derail President Obama's efforts to reform the system.
Snowe, a Republican, said Monday that she's working with Sen. Chuck Schumer, D-N.Y., to establish that framework in the bill expected to emerge next month from the Senate Finance Committee.
In an interview in Portland, Snowe said it would be unfair to include a government-run health insurance option that would take effect immediately.
"If you establish a public option at the forefront that goes head-to-head and competes with the private health insurance market the public option will have significant price advantages," she said.
But the people of Maine shouldn't give a shit about that, because what is important to Sen. Snowe is that she protects the health industry that has contributed nearly one million dollars to her campaign fund, about 10% of all she's received in her Senate career.
On 24 June 2009, Wendell Potter, the former head of corporate communications for CIGNA, a health insurance provider, testified before the Senate Committee on Commerce, Science and Transportation.
You can read his testimony in its entirety here (pdf warning), and I urge you to do so. Some snippets from it:
I know from personal experience that members of Congress and the public have good reason to question the honesty and trustworthiness of the insurance industry. Insurers make promises they have no intention of keeping, they flout regulations designed to protect consumers, and they make it nearly impossible to understand - or even to obtain - information we need.
While they expressed concerns about some of President Clinton's proposals, they said they enthusiastically supported several specific goals.
Those goals included covering all Americans; eliminating underwriting practices like pre-existing condition exclusions and cherry-picking; the use of community rating; and the creation of a standard benefit plan. Had the industry followed through on its commitment to those goals, I wouldn't be here today.
To win the favor of powerful analysts, for-profit insurers must prove that they made more money during the previous quarter than a year earlier and that the portion of the premium going to medical costs is falling.
Ten percent of the population accounts for two-thirds of all health care spending. The Energy and Commerce Committee's investigation into three insurers found that they canceled the coverage of roughly 20,000 people in a five-year period, allowing the companies to avoid paying $300 million in claims.
Using the figures above, the average claim would have been for $150,000 - not a small amount.
But it may help to explain why medical costs are the #1 cause of personal bankruptcies in the U.S.
The purging of less profitable accounts [small businesses] through intentionally unrealistic rate increases helps explain why the number of small businesses offering coverage to their employees has fallen from 61 percent to 38 percent since 1993, according to the National Small Business Association. Once an insurer purges a business, there are often no other viable choices in the health insurance market because of rampant industry consolidation.
We've already seen reports (pdf warning) like this from the Main Street Alliance detailing how small employers can no longer afford to offer health insurance to their employees. This explains that in part.
Unless required by state law, insurers often refuse to tell customers how much of their premiums are actually being paid out in claims. A Houston employer could not get that information until the Texas legislature passed a law a few years ago requiring insurers to disclose it. That Houston employer discovered that its insurer was demanding a 22 percent rate increase in 2006 even though it had paid out only 9 percent of the employer's premium dollars for care the year before.
For profit health insurance companies are in the business to make money, not to provide health care. This should always be the first thing you consider whenever you consider any arguments about reforming our current system.
Not only are the benefits [of limited-benefit plans] extremely limited but the underwriting criteria established by the insurer essentially guarantee big profits. Pre-existing conditions are not covered during the first six months, and the employer must have an annual employee turnover rate of 70 percent or more, so most of the workers don't even stay on the payroll long enough to use their benefits. The average age of employees must not be higher than 40, and no more than 65 percent of the workforce can be female. Employers don't pay any of the premiums - the employees pay for everything. As Consumer Reports noted in May, many people who buy limited-benefit policies, which often provide little or no hospitalization, are misled by marketing materials and think they are buying more comprehensive care. In many cases it is not until they actually try to use the policies that they find out they will get little help from the insurer in paying the bills.
Again, note that the industry offers insurance on which it knows it will likely never have to pay a claim - it's like printing money, except it's legal.
Please read Mr. Potter's entire testimony, and then copy and send it along to everyone that you know. Especially to those that are opposed to a public option.
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