The headlines are positively scary.
Where is the moral shame of our so-called leaders?
Shame on Elliot Spitzer who I trusted and voted for.
NYC fears big rate hikes if health plan converts
Doctor's group opposes GHI-HIP merger
The headlines are about the company which mercifully gives me the privilege of paying a huge premium for what amounts to junk health insurance. I can't pay another "big rate hike", I'm already paying close to $8000 a year. I can't continue paying these premiums, nor can anyone else.
For many New Yorkers, this is the end of the road.
We are financially tapped out. Forgive the cliche, but you can't get blood from a stone. We cannot pay even higher premiums. We cannot accept even less healthcare.
How can this be happening?
I live in New York, one of the bluest of blue states.
I thought I was one of the lucky ones.
I thought I lived in a merciful state.
We just elected a new young Democratic governor, Elliot Spitzer.
I thought he would protect us.
I thought Mr. Spitzer would show us some mercy. I thought that he understood that our problems were his problems. I thought he was going to be on our side.
You must be wondering what I'm talking about. I'm talking about the expected conversion to "for-profit" staus of GHI and HIP, two not-for-profit health insurers operating in New York State.
The combination of GHI and HIP would create the largest insurer in the region by far, with four million customers and $7 billion a year in revenue. This merger has been in the works for years. Consumer and health care advocates and financial analysts say the conversion to for-profit status raises serious questions about higher prices for insurance.
If Elliot Spitzer allows this disasterous plan to go forward, I would argue this does not bode well for our collective future. And sadly, I gather the expected financial windfall to the stressed coffers of New York State, precludes Spitzer from intervening. What I'm saying is the money from the conversion is already in the budget.
Democratic Gov. Eliot Spitzer, who must close a $4.4 billion deficit, included the conversion in his new budget that starts on April 1. He estimated it would raise $284 million for the state -- and more than $1.5 billion in the next three fiscal years.
http://www.reuters.com/...
This is doubly scary happening as it does, while a Democratic governor is presiding in New York State. Who is looking out for us--for you and me, dear Kossacks?
Everyone should be as alarmed as Robert Goldberg, MD, the president of the Medical Society of the State of New York.
The president of the Medical Society of the State of New York believes the conversion of the GHI-HIP insurance company would have a negative impact on patient care and payments to physicians.
Dr. Robert Goldberg made his comments during a public hearing Jan. 29 in New York City as part of the state review of a proposal by Group Health Inc. and Health Insurance Plan of Greater New York to merge and convert to a for-profit company, the largest in New York.
Goldberg cited examples of previous conversions that resulted in reduced care for patients and reduced fees for providers - despite increased premiums for patients and businesses - so that the companies could generate "enormous profits" for their shareholders.
"We believe these profits are being generated on the backs of the patients who seek care, the physicians and others who provide the care, and the businesses who ultimately pay for the care," he said.
http://www.bizjournals.com/...
In October, I described my own situation. I'm insured by GHI, I'm currently paying almost $8000.00 a year. When our Democratic candidates describe their health care reform plans, they talk about affordable and guaranteed healthcare. This is fine, this is what we all want, but I need to know the definition of affordable .
Is $8000.00 a year affordable? And what does this merger do for me and millions of frightened New Yorkers, but make healthcare even more unaffordable.
Like I often say, don't believe me. These are some of the fears of Richard Propp, M.D., chair of the Capital District Alliance For Universal Healthcare Inc.
* What are the consequences of the company going from an ethic of subscriber value to one of shareholder value?
* Will the need to assure adequate profits mean premiums will increase and that more care will be denied or delayed?
* 2.7 million people lack health insurance in New York. What effect will conversion have on that number?
* How much of the new revenues generated by going for-profit will finance GHI/HIP lobbyists, and will they work for consumers or shareholders?
* GHI/HIP has $900 million in reserves and just bought Connecticare for $350 million. Why does GHI/HIP need for-profit status to secure its future?
Dr. Arnold Relman, a physician, teacher and thoughtful national medical leader, has written that the key to saving America's health care lies in having a nonprofit health care system that includes everyone. It seems to us that approving GHI/HIP's conversion is inconsistent with that idea, will only benefit the shareholders and executives, and will result in worse health care in New York state.
http://www.timesunion.com/...
As you might imagine, the New York State insurance department, citing documentation provided by the insurers, said that synergies realized from the affiliation will be used to lower the level of premium increases to HIP and GHI subscribers in future years. The Spitzer insurance department seems hellbent on approving this new assault on millions of totally beleaguered New Yorkers.
Meanwhile in California. Health reform dies an ignominious death.
SACRAMENTO -- Gov. Arnold Schwarzenegger's audacious plan to arrange medical insurance for nearly all Californians -- one watched as a potential model for the nation -- was rejected Monday by the state Senate, obliterating the chance of anything but piecemeal healthcare changes from the Legislature this year.
The Senate Health Committee voted down the $14.9-billion proposal, which would have required people to hold private insurance and subsidized the premiums for those who could not afford them. The repudiation came from Republicans and Democrats, with only one of 11 senators backing the plan that Schwarzenegger and Assembly Speaker Fabian Nuñez (D-Los Angeles) spent much of 2007 putting together.
http://www.latimes.com/...
And in a sign of the times, Lisa Girion at the Los Angeles Times, is reporting that regulators in California are getting ready to play hard ball with UnitedHealth, one of the deadliest health insurers.
Health plan faces fines of $1.33 billion:
UnitedHealth Group's PacifiCare failed to make timely payments on thousands of claims, state regulators say
California regulators are expected to announce today that they are seeking as much as $1.33 billion in penalties from Cypress-based PacifiCare as a result of widespread problems stemming from its takeover two years ago by healthcare giant UnitedHealth Group Inc.
http://www.latimes.com/...
When you read all this, keep in mind that these are the for-profit insurers which our Democratic candidates--both of them--want to entrust with the health of the American people.
Like I said, I'm scared and you should be as well.