That's right, this deserves the scary headline. No one else has reported this, and believe me, I've looked.
Did you know that the INSURANCE COMPANIES are IN FAVOR of health care reform? And what's more, they endorsed or even WROTE much of what's in the current bills in Congress!
Okay, my pinkie's getting tired; no more scary all-caps. But isn't it shocking to find out that those death panel and evil rationing stories you're hearing from the far right are about a bill that the insurance industry wants to see happen?
Don't believe me? Watch this C-SPAN interview with Karen Ignagni, head of the health insurance trade association, AHIP. It will air tomorrow (Sunday) at 10 a.m. and 6 p.m. ET.
Here's the deal: Insurance companies are tired of being the meanies, and denying coverage to people with pre-existing conditions and denying expensive treatments to folks who need them. They know deep inside things have got to change. But they can't do it on their own. They need government to step in and force some regulations on them. In exchange, they get something they want: Universality. That's right, insurance companies want to see 100% of the population covered. Because that's the only way they can afford to make some of the concessions they realize they will have to make.
How? Because a significant proportion of those uninsured are young and healthy. Insurance companies need their premiums, as much as those uninsured people need to be covered, in case something bad happens. It's sort of a win-win proposition. (For a more complicated explanation of how universality is tied to insurance regulation and cost control, read Uwe Reinhardt on the "three-legged stool" of health care reform.)
And what about the soaring costs in health care? The insurance companies also want to see something done about that. Their current business model is unsustainable. As costs rise, employers drop coverage for their employees. This forces insurance companies to become even more mean, and figure out how to deny payment for treatment while at the same time raising premiums.
Now, I don't for a minute think insurance companies lie awake at night, worried about their mortal souls in the afterlife or even their reputations. They're purely motivated by profit, which is what their shareholders expect. So the fact that they're in favor of most of what's being proposed isn't shocking—there's a lot of good stuff in there for insurance companies, including the regulations that are being proposed. After all, these regulations will apply to all, equally. If AETNA isn't allowed to cancel your insurance when you get sick, neither is Blue Cross. And they get their greedy little paws on a whole new chunk of uninsured, who'll be mandated to participate so they don't free load on the system once they get sick.
This isn't speculation on the insurance companies' part, either. A lot of this has actually been done already—in Massachusetts, where they've achieved near universal health care coverage, and in the process, learned a lot of valuable lessons about how it can be achieved. (In the interview, Ignagni goes on at some length about the lessons learned in Massachusetts. You have watched it, right?)
So why are the right wing mobs so angry? One reason may be that part of the plan the insurance companies don't like—the so-called public option. The public option is included in the House bills, but will not likely be in the Senate version. By the time the bill goes to committee, something's got to give. Likely the public option will be severely watered down, or won't exist at all. That's a shame, because it's going to be very difficult to control costs if the public option isn't there. And liberals like me are very much in favor of controlling costs, so that resources can be spent on more important things, like early childhood education.
But I don't think it's the idea of a public option that's got right wing mobs so riled up. I think it's the disinformation coming from people like Sarah Palin and other Republicans, who should know better. But they've decided to put partisan interests in front of the truth. They're even putting partisan interests in front of the business community, including small business owners who stand to benefit from this bill. (They'll be able to offer their employees the same low-cost insurance plans that currently are only available to large employers, through the insurance exchange.)
If this bill passes, the only losers will be Republican politicians. So they have to scare people about what the bill actually contains. They won't vote for it, or defend any parts of it, even though they've contributed much of the language in the bills. (You won't hear them admit that, either, but watch C-Span.)
I know this sounds odd coming from a liberal who's longed railed against all-powerful insurance companies, but if you really want to do your insurance company a favor, you'll phone your Congressperson and ask them to vote for the health care reform bill. It'll make Karen Ignagni happy, and it just might help a lot of Americans who currently don't have health insurance—and that could very well be you if insurance reform doesn't pass.