October 30, 2009

Why the hell does the Insurance Industry support reform?

Democrat Led Health Insurance "Reform" might make things WORSE

by The Punk Patriot
So if you're a loyal Democrat, you're probably all riled up about the health insurance reform going on in congress. You're probably anxious for Congress to get something, ANYTHING passed. Not so fast there buddy. Health insurance reform, even if it's done by Democrats could end up making things WORSE, not better.

"What? How could this possibly be?" you might ask. Well...

It's old news by now that insurance giant Wellpoint, owner of Maine's Anthem Blue Cross Blue Shield, is suing the State of Maine, to increase their profits. But you may not know the entire backstory: Anthem Blue Cross, in anticipation of the individual mandate for health insurance, has jacked up their rates 18% from what they were previously, jacking many people's premiums through the roof.

What may surprise you if you're not paying close attention, is that the Health Insurance industry is actually in favor of health insurance "reform." How could this be? Did they suddenly grow a concience, and decide that letting people die to increase their profit margin was wrong? Are they crying out to Big Government to regulate them like Sinners calling out to Jesus? "Please, Government! Save us from our own wicked nature!"

Not a chance in Hell.

It's no surprise that Wellpoint has run television ads in favor of the health insurance "reform" being pushed by Democrats in Congress. If the individual mandate becomes a final part of the bill, whether you can afford to or not, we will all end up having to pay these new increased rates, or face federal fines of up to three thousand dollars, depending on which version of the individual mandate ends up in the final bill.

Maine's state government has the power to regulate insurance rates. In light of this 18% increase, the State of Maine stepped in, and reduced the increase from 18% to 11%. So people's rate are still going up, and health insurance is still becoming less affordable. But that wasn't enough for the private insurance giant.

Last year Wellpoint made $2 billion in profits. In Maine alone, they've paid out over one million dollars in CEO bonuses. Rather than cut CEO bonuses to reduce their overhead, they are increasing their rates. Let's call a spade a spade. Wellpoint is essentially suing to ensure not their profit margin, but their CEO bonus margin.

So what's the deal here? Why are Congressional Democrats so willing to pass a bill that will essentially screw us over to benefit of the Insurance Industry? Easy. Follow the money. The health insurance is a powerful lobby, and one can accurately predict the level of a politician's support for the mandate, and for the Public Option, based on how much money was contributed to their campaign from the health insurance industry.

"But the Democrats are supposed to be on our side! It's the Republicans who are corrupt corporate sleazebags!" You might say. And yes, while the Republicans are generally corrupt, with lots of corporate donors, the corporate lobbyists who really run the show don't care about party affiliation. They care about who is in power at the moment. Right now, that's the Democrats.

That's why you find the Democrats in the predicament they're in. They have to satisfy the Private Health Insurance industry while making it look like they're achieving meaningful reform. They're playing a balancing act, giving the insurance industry exactly what they want, while still trying to fool their constituents into thinking that they're doing what's right.

Well, have they done their job?

Who owns your congressperson? Find Out: OpenSecrets.org

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