A few weeks ago, AHIP shot themselves in the foot when they released the PWC report that was basically nothing more than a blackmail threat, you do this reform, we'll raise premiums. That effort resulted in a real resurgence for the public option.
That stumble certainly isn't going to stop the insurance industry from fighting back at every level. Hopefully, more of them will backfire as as much as PWC report, and as badly as this one:
RALEIGH, N.C. —Even Blue Cross and Blue Shield of North Carolina acknowledges that its timing on two recent mailings was unfortunate.
The News&Observer of Raleigh reported that customers first learned their rates will rise by an average of 11 percent next year.
Then they got a flier urging them to send an enclosed preprinted, postage-paid note to Sen. Kay Hagan denouncing what the company says is unfair competition that would be imposed by a government-backed insurance plan. Congress is likely to consider that public option as it debates the health care overhaul....
Indignant Blue Cross customers, complaining that their premium dollars are funding the campaign, have called Hagan's office to voice support for a public option. They've marked through the Blue Cross message on their postcards and changed it to show they support the public option, then mailed the cards.
How emblematic of the whole crisis is this incident? The insurers will just keep on raising our premiums and using that money to further their own interests in making more profits. They sure as hell aren't putting those profits into providing more or better coverage. And their customers know exactly what they're doing. Which is precisely why the public option is so popular--everyone who got that premium increase notice knows that they are trapped in their policies. If they want insurance, they have to put up the increases in costs and decreases in coverage. What rational person wouldn't think some competition and some options are called for?
Unfortunately, all of the industries efforts to fight reform aren't going to be so ham-handed, and most of them probably aren't going to be relying on disgruntled customers to do their dirty work. Not when they've got got lots of allies in D.C. looking out for them. But as long as their obscene profits are threatened, the insurance companies are going to fight this, and they will have plenty of allies on the Hill and in Congress to keep doing that.