Health Care Blog

A Dream for Insurance Companies? Must Be News To Them

Recently, a somewhat perplexing new line of argument has emerged about health insurance reform, with some folks suggesting the Senate bill is a "dream" for insurance companies. 

If that's the case, though, it must be news to them. The insurance industry has been leveraging its considerable resources in a ferocious effort to defeat this bill, including producing a report the day before the Senate Finance Committee vote that was so misleading the firm behind it had to walk away from it. And that's not surprising, because this bill will finally wrest power away from the insurance industry and put it in the hands of American consumers.

• Among the many provisions to end insurer abuses, lower premiums, and hold insurance companies accountable:
• Insurance market reforms will prohibit abuses such as denying coverage for pre-existing conditions, charging exorbitant premiums based on gender, age, or health status, dropping coverage when people are sick, and imposing lifetime limits on benefits.
• Consumer rights will be enhanced by requiring all insurers to provide effective appeals procedures including outside, independent review of appeals
• New insurance exchanges will reduce premium increases by lowering administrative costs and increasing the leverage of individuals and small businesses in this insurance market.
• Competition will also be enhanced by providing consumers comparative information on available insurance options giving them the tools to make more informed decisions and drive competition based on value and service.
• Insurers will be held accountable for excessive overhead costs fueled by unreasonable executive compensation and profits.
• Insurers will also be required to compete against cost-effective national plans selected by the federal Office of Personnel Management.
• Wasteful taxpayer overpayments to insurance companies through private Medicare Advantage plans will be eliminated.
• A new $6.7 billion annual fee will be levied on insurance companies to ensure that they pay their fair share of coverage costs.

It’s also important to remember that, while none of us are shedding any tears for the insurance industry, the primary goal of health insurance reform isn’t to punish insurers – it’s to give every American the ability to find affordable coverage while controlling the unsustainable cost growth in our current health care system that is crushing families and businesses.  On that front, this bill is hugely successful.  This bill will bring stability and security to people who have insurance and provide affordable options to those who don’t.  It will protect against arbitrary insurance company rules and  will lower premiums for American families and businesses. And it will take a big chunk out of the national deficit.

Dan Pfeiffer is White House Communications Director 

AARP Announces Support for Senate Health Reform Bill

For decades, Americans have talked about fixing our broken health care system.  Presidents from Truman to Nixon to Clinton have attempted and come up short.   Now, though, we’re far closer than ever before to signing into law real health insurance reform – reform that will give insured Americans unprecedented stability and security, make quality, affordable insurance available to every American,  and lower costs for American families, businesses, and the country as a whole.

And today the health insurance reform effort gained even more critical momentum as the AARP announced that it is supporting the Senate reform legislation. 

This announcement is truly a big deal.  For decades, the AARP has been on the front lines of the fight to cut health care costs and improve coverage for America’s seniors.  They're supporting the passage of this bill because they know it will do just that.  It will add years to the life of Medicare, reduce out of pocket costs – including for preventive care and prescription drugs – and ensure higher quality care for our seniors.

"This bill will strengthen Medicare by eliminating cost barriers to preventive care, reform Medicare's payment and delivery system to promote care coordination, and reduce hospital infections and preventable readmissions," AARP CEO A. Barry Rand wrote in a letter to Senate Majority Leader Harry Reid.  “Moreover, through critical insurance market reforms and the establishment of exchanges, this bill will give the uninsured and small businesses access to quality affordable plans. The legislation also includes important provisions to strengthen home and community-based care and to assist individuals in saving to meet future long-term care needs.”

But the AARP’s support doesn’t just say a lot about what the bill will do.  It says a lot about what the bill won’t do.  It reaffirms that, for all the scary myths being spread by defenders of the status quo, nothing in reform will cut the Medicare benefits that have been guaranteed to America’s seniors.

It's safe to say that the AARP would not be supporting reform if it wasn’t a good deal for seniors.

Here's the money quote:  "With your commitment to closing the doughnut hole in conference, consistent with the President's pledge, and the many positive features referenced above, AARP is pleased to support your efforts to obtain cloture, and urges timely passage of this legislation by the Senate."

So next time you hear the usual scary stories, it’s worth keeping this announcement in mind.