Healthcare Reform
Healthcare industry stocks explode as bill progresses
The president claims Democrats "stood up to special interests," as they get very rich on "reform"
(updated below – Update II – Update III)
The Senate passed its health care bill “by standing up to the special interests who prevented reform for decades and who are furiously lobbying against it now” – Barack Obama, December 21, 2009.
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“‘Healthcare shares rose on Monday as a bill to reform healthcare passed the first critical test in the Senate . . . Shares of Cigna rose 5.3 percent to $37.69. Shares of Aetna Inc rose 5.84 percent to $34.41. Humana Inc rose 3.79 percent to $45.17 and United Health Group Inc rose 5 percent to $33.14. Shares of Wellpoint Inc rose 3.8 percent to $60.51″ — Reuters, yesterday, with this ironic headline: ”Healthcare shares rise as reform bill progresses“.
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“Investors are seeing the Senate’s version of health care reform as a massive public subsidy for insurance companies — and as a result, are sending the sector’s stock prices shooting up, up, up. . . . Stripped of a government-run insurance plan, the bill would give tens of millions of Americans no option but to start paying hefty premiums to private companies.
The rise in stock prices has been particularly striking in the period since Sen. Joe Lieberman (I-Conn.) said on October 27 that he would filibuster a Senate health care reform bill if it included a public option . . . Here’s a quick breakdown of major health insurance company stock performance from Oct. 27 to Friday’s market close:
* Coventry Health Care, Inc. is up 31.6 percent;
* CIGNA Corp. is up 29.1 percent;
* Aetna Inc. is up 27.1 percent;
* WellPoint, Inc. is up 26.6 percent;
* UnitedHealth Group Inc. is up 20.5 percent;
* And Humana Inc. is up 13.6 percent” – Shahien Nasiripour, The Huffington Post‘s business reporter, yesterday.
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Just to put this boon to health insurance stocks in perspective: according an Indianapolis Star article from June, Evan Bayh’s wife, Susan, “owns from $500,001 to $1 million in employee stock in WellPoint, the Indianapolis-based insurance giant on whose board she sits.” That would mean that the value of her personal holdings in that one health insurance company alone, in the last six weeks alone (since Lieberman and her husband began menacing the public option), would have increased by a value of between $125,000 and $250,000. As part of the bonanza of health care industry board positions she magically received since her husband became a Senator, Susan Bayh is given a quarter-million dollars each year in stocks and stock options from Wellpoint. That’s just a microcosm for considering how well Obama’s so-called “special interests” have done as a result of this health care bill.
One should acknowledge: the mere fact that the health insurance industry and the market generally sees this “reform” bill as a huge boost to the industry’s profitability does not prove, by itself, that this is a bad bill. Contrary to what I’ve seen said in various places, I haven’t advocated for the defeat of this bill. I’ve said from the start that there are reasonable arguments on both sides and that one must weigh (a) the corrupt, mandate-based strengthening of the private insurance industry, the major advancement of the corporatism model of government, the harm this is likely to do to some who are now covered and some who cannot afford the forced premiums, and the chances for a better bill if this one is defeated, versus (b) the various substantial benefits to many people who do not now have and cannot obtain health insurance and the risk that defeat of this bill will ensure preservation of the status quo. Weighing those factors is difficult and, at least for me, produces ambivalence.
That said, I’ve been fairly repulsed by the 2003-like swarming, bullying efforts of the President’s loyal supporters (both in the White House and from Beltway journalists and their partially cloned liberal bloggers) not merely to dispute, but to demonize and personally discredit, the bill’s progressive critics as insane, crazy, childish, idiotic and drugged-out, Naderite, purist liars who — we now learn today — are the equivalent of “global warming denialists.” Whatever else is true, progressive opponents of the Senate bill (virtually all of whom offer strategic arguments for improving it, not for preserving the status quo), have been making well-informed and substantive critiques. I don’t want to overstate this: there has been some very responsible and informative debate among these various factions, the insults have flown in both directions, and it’s understandable that passions run high on an issue of this significance among adversaries, particularly as the process mercifully draws to a close. Still, it seems clear that campaigns by White House loyalists in government and the media to destroy the personal credibility and malign the character of the President’s critics — and to depict “the Left” as shrill, unSerious losers — obviously aren’t confined to the Bush years or to Bush supporters.
But whatever else one might want to say in favor of this health care bill — and there are compelling arguments to make in its favor — the notion that Democrats have “stood up to the special interests who prevented reform for decades” is too blatantly false, insultingly so, to tolerate. As even the bill’s most vocal supporters acknowledge, the White House’s strategy from the start was to negotiate in secret with those very special interests in order to craft a bill that they liked and that benefits them. If one wants to invoke the Obama-era religious mantra of “pragmatism” to argue that this was a shrewd strategic decision necessary for getting a bill passed, that at least is coherent (though not, in my view, persuasive). But this bill is unquestionably one of the greatest boons in recent history for the private health insurance industry and other “special interests” that have long been opposing “reform.” It’s a major advancement for the corporatist model on which both parties rely. It should lead a rational person to want to buy large amounts of stock in Goldman Sachs and Citigroup in anticipation of the upcoming “reform” of that industry. Whatever this bill is, “standing up to special interests” is not it; quite the opposite.
UPDATE: Speaking of coordinated efforts by the President’s loyal supporters to attack the credibility and character (rather than the arguments) of Obama critics, one saw this in full force after Matt Taibbi’s last article, which directly criticized the President for being captive to Wall Street. As a result, numerous progressive Obama loyalists sought to transform a couple of small, ancillary factual errors into broad attacks on Taibbi’s credibility and reliability as a journalist (attacks which Taibbi discussed here [see first paragraph] and here). Those efforts are quite similar to what has been directed at Howard Dean, the “purposefully misleading“ Jane Hamsher and other progressive critics of the health care reform bill.
Yesterday, I was on Democracy Now discussing the health care bill. The video and transcript are here.
UPDATE II: Andrew Sullivan writes:
Why is so much hostility to the bill wrapped up in the horror that private insurance companies might actually make some money off this? That’s what private companies are supposed to do. They’re constrained from many of their worst and cruelest tactics in this reform, but remain the primary vehicle for it, as was well advertized from the very beginning.
I think this expresses the exactly backwards conception of “what private companies are supposed to do.” Yes, they’re “supposed to” earn profits — but they’re supposed to do so by competing for customers, not by having the federal government enact laws forcing people to purchase their products under penalty of having part of their income seized by the IRS. Moreover, the claim that this is what “was well advertized from the very beginning” is simply not true. This is what Obama said during the campaign about health care reform:
Barack Obama and Joe Biden’s new National Health Insurance Exchange will also help increase competition by insurers. . . . Through the Exchange, any American will have the opportunity to enroll in the new public plan or an approved private plan… The Exchange will require that all the plans offered are at least as generous as the new public plan and meet the same standards for quality and efficiency.
What was “advertized” — a choice of a public plan to compete with private insurers and thus keep them honest — is the opposite of what is being done. And what was “advertized” about how the bill would be written — no secret negotiations with industry representatives, everything done publicly and out in the open — is also the exact opposite of how the bill was shaped. Finally, nobody I’ve seen objects to private health care companies earning a profit per se; the objection is to the claim (voiced by Obama and others) that “special interests” have been somehow thwarted by this bill when it is clear that the bill was negotiated with them, in part written by and for them, and will result in a massive increase in their profitability.
UPDATE III: Obama today told The Washington Post: ”I didn’t campaign on the public option.” In addition to what I quoted above, everyone interested should review the evidence here and here, and decide for themselves if that’s the truth.
Follow Glenn Greenwald on Twitter: @ggreenwald. More Glenn Greenwald.
Romney pal defends Obamacare
Sen. Roy Blunt supports part of the bill his ally Mitt Romney has pledged to fully repeal
(Credit: Reuters/ Jonathan Ernst) Sen. Roy Blunt, R-Mo., gave a strong defense yesterday of a portion of the Affordable Care Act that allows children up to 26 years old to remain on their parents’ health insurance plans, breaking a bit from the GOP’s hard-line opposition to Obamacare.
Blunt endorsed Mitt Romney early on and led the campaign’s efforts to recruit Republican lawmakers during the GOP primary. But his comments in an interview on KTRS radio in St. Louis may give Boston some heartburn as it tries to convince conservative voters that Romney, who enacted the predecessor of Obamacare in Massachusetts, will actually repeal the healthcare law.
Continue Reading CloseAlex Seitz-Wald is Salon's political reporter. Email him at aseitz-wald@salon.com, and follow him on Twitter @aseitzwald. More Alex Seitz-Wald.
“Birth control doesn’t matter”
A new survey reveals just how ignorant young people are about contraception and pregnancy
(Credit: restyler via Shutterstock) When it comes to sex and reproduction, even the most mind-numbingly intuitive conclusions can be politicized or disbelieved. So they bear repeating and resubstantiation. Take this recent Guttmacher study on contraceptive knowledge. Surveying 1,800 men and women ages 18–29, the authors “found that the lower the level of contraceptive knowledge among young women, the greater the likelihood that they expected to have unprotected sex in the next three months, behavior that puts them at risk for an unplanned pregnancy.” In other words, access to factual information helps prevent risky behavior.
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Irin Carmon is a staff writer for Salon. Follow her on Twitter at @irincarmon or email her at icarmon@salon.com. More Irin Carmon.
Healthcare’s foreign invasion
Obama risked a trade war with China about manufacturing -- so why isn't he outraged about medical jobs?
(Credit: gualtiero boffi via Shutterstock/Salon) Approximately 15 percent of all healthcare workers and 25 percent of all physicians in the United States were born and educated elsewhere. This means that 1.5 million healthcare jobs are “insourced,” occupied by foreign-born, foreign-trained workers brought into the United States on special visas earmarked for healthcare jobs. This number is 50 percent greater than the total number of jobs in the U.S. auto-manufacturing industry. It’s amazing to consider that in 2008 and 2009, the auto industry, which makes up just 3.6 percent of the U.S. economy, received a $97 billion bailout. If we estimate that each of these 1.5 million insourced healthcare jobs has an average wage of $60,000, that’s $90 billion a year in wages going to people brought into the United States to work rather than training Americans to do the same jobs.
Continue Reading CloseDr. Kate Tulenko is a physician with degrees from Harvard University, Cambridge University and the Johns Hopkins School of Medicine. The former coordinator of the World Bank's Africa Health Workforce Program, she currently serves as director of clinical services for a global health nonprofit. More Kate Tulenko.
Obama destroys Constitution with mild Supreme Court criticism
Conservatives and moderates declare SCOTUS-bashing to be "intimidation"
(Credit: AP) Ruth Marcus is unsettled. Maybe even queasy. There is probably some light nausea. What has her worried for the future of the nation, today? President Obama’s shameful, horrific, vicious attacks on those nice people in the Supreme Court.
Obama said that the court overturning Congress’ healthcare reform law would be a textbook example of “judicial activism” as “conservative commentators” define it: “that an unelected group of people would somehow overturn a duly constituted and passed law.” And hey, that seems like an eminently defensible and not particularly unsettling point! Conservatives made “judicial activism” into a talking point and rallying cry and defined it vaguely enough to encompass judges striking down basically any law or statute.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
My son’s healthcare battle
My 14-year-old has brain cancer. Without Obamacare, he would have already exceeded his lifetime insurance limit
Supporters of healthcare reform rally in front of the Supreme Court on the final day of arguments regarding the healthcare law signed by President Obama on March 28, 2012. (Credit: AP Photo/Charles Dharapak) Mason is my 14-year-old son, who is adorable and funny, and happens to have a very stubborn and large brain tumor. We discovered the tumor four years ago, and we have been monitoring and treating it with the help of some of the finest doctors around. Mason has lived a somewhat “normal” life, despite frequent MRIs and even chemotherapy. He did his homework and hung out with friends until the fall of 2010 when his headaches became debilitating. Scans revealed that Mason’s tumor had grown for the first time since we had discovered it. Then days before we were scheduled to meet with the neurosurgeon to discuss a surgery we had tried to avoid, Mason had a massive cerebral hemorrhage.
Continue Reading CloseJanine is a San Francisco Bay Area writer. She is currently working on a collection of essays about surviving her son's brain tumor and the odd reality that comes with a diagnosis of childhood cancer. More Janine Urbaniak.
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