Wednesday, Nov. 2, 2011
Issue of the Week: GOP Isn't Reducing the High Cost of Health Care
Plus Hero of the Week
If Gov. Scott Walker and the Republican-controlled Legislature truly wanted to help Wisconsin's struggling families, they would reduce the high cost of health care. Instead, unfortunately, they're doing all they can to ensure that insurance costs skyrocket in the future.
Part of their plan is to slash BadgerCare and other Medicaid programs so that low-income workers are forced to purchase insurance from for-profit companies. Of course, this will do nothing to lower those workers' premiums and out-of-pocket expenses. But it will help to fatten the bottom lines of insurers, who are already charging too much for plans that don't cover much when you actually need insurance. That's why Wisconsinites turn to BadgerCare in the first place.
Last week, Walker's insurance commissioner, Ted Nickel, requested permission from the federal government to allow Wisconsin's private insurers to continue to reap unfair profits. Instead of complying with the Affordable Care Act (ACA)—which requires insurance companies to spend between 80% and 85% of their income from premiums on medical treatments, not on administration or profits—Nickel wants a waiver so that insurance companies can spend as little as 71% on medical costs before the ACA is fully phased in. That would allow insurance companies to continue to unfairly shortchange its policyholders while hoarding profits for itself.
The Walker administration has also shown hostility to federal health care reform by allowing state Attorney General J.B. Van Hollen to fight its constitutionality in court and appointing department heads who oppose it. The administration has hidden the benefits of federal health care reform for Wisconsinites, most notably by manipulating the conclusions of an independent study and then hamstringing journalists who wanted to report on the study's release.
Wonder why? It could be because Wisconsinites will be better off if health care reform is fully implemented in the state. According to a new study commissioned by Families USA and co-released by Citizen Action of Wisconsin, by 2019 Wisconsin consumers will save on average $2,040 a year, thanks to reduced premiums and cost-sharing. The best part is that these savings really help working people. The study found that those making less than $30,000 will save $3,405; those earning between $30,000 and $50,000 will save $1,493; and those earning between $50,000 and $100,000 will save $996.
That, of course, is not what the free-market, for-profit insurance industry—and its enablers in the Walker administration—want you to know.
So if Walker really wanted to help working families, he'd push to fully implement the Affordable Care Act and fully fund BadgerCare.
Governor, are you listening?
Heroes of the Week: Voter ID Transportation Volunteers
In May, Gov. Scott Walker signed a bill requiring Wisconsin voters to present photo identification at the polls. Critics noted that the bill is one of the most restrictive in the nation and would likely deter people from voting, particularly students, the elderly and the poor. State-issued voter IDs are required to be free, but an official Department of Transportation (DOT) memo instructed DOT workers not to tell applicants that the IDs were available at no cost. A state mailroom employee was subsequently fired for urging fellow employees to inform the public that the cards could be obtained free of charge.
For now, the law stands. So parishioners and staff from three local churches are offering a “Voter Outreach” program to help voters obtain the newly required IDs. Vans will be provided at St. Mark A.M.E. Church (1616 W. Atkinson Ave.), New Covenant Missionary Baptist Church (2315 N. 38th St.) and Metropolitan Missionary Baptist Church (1345 W. Burleigh St.) at 11 a.m. on Tuesday, Nov. 8, to transport people to the Department of Motor Vehicles to obtain the new IDs. Information will also be provided on how to obtain photo IDs and birth certificates, as well as the location of polling places. On-site registration will be available at the St. Mark A.M.E. Church Quality of Life Center (1641 W. Atkinson Ave.).
Part of their plan is to slash BadgerCare and other Medicaid programs so that low-income workers are forced to purchase insurance from for-profit companies. Of course, this will do nothing to lower those workers' premiums and out-of-pocket expenses. But it will help to fatten the bottom lines of insurers, who are already charging too much for plans that don't cover much when you actually need insurance. That's why Wisconsinites turn to BadgerCare in the first place.
Last week, Walker's insurance commissioner, Ted Nickel, requested permission from the federal government to allow Wisconsin's private insurers to continue to reap unfair profits. Instead of complying with the Affordable Care Act (ACA)—which requires insurance companies to spend between 80% and 85% of their income from premiums on medical treatments, not on administration or profits—Nickel wants a waiver so that insurance companies can spend as little as 71% on medical costs before the ACA is fully phased in. That would allow insurance companies to continue to unfairly shortchange its policyholders while hoarding profits for itself.
The Walker administration has also shown hostility to federal health care reform by allowing state Attorney General J.B. Van Hollen to fight its constitutionality in court and appointing department heads who oppose it. The administration has hidden the benefits of federal health care reform for Wisconsinites, most notably by manipulating the conclusions of an independent study and then hamstringing journalists who wanted to report on the study's release.
Wonder why? It could be because Wisconsinites will be better off if health care reform is fully implemented in the state. According to a new study commissioned by Families USA and co-released by Citizen Action of Wisconsin, by 2019 Wisconsin consumers will save on average $2,040 a year, thanks to reduced premiums and cost-sharing. The best part is that these savings really help working people. The study found that those making less than $30,000 will save $3,405; those earning between $30,000 and $50,000 will save $1,493; and those earning between $50,000 and $100,000 will save $996.
That, of course, is not what the free-market, for-profit insurance industry—and its enablers in the Walker administration—want you to know.
So if Walker really wanted to help working families, he'd push to fully implement the Affordable Care Act and fully fund BadgerCare.
Governor, are you listening?
Heroes of the Week: Voter ID Transportation Volunteers
In May, Gov. Scott Walker signed a bill requiring Wisconsin voters to present photo identification at the polls. Critics noted that the bill is one of the most restrictive in the nation and would likely deter people from voting, particularly students, the elderly and the poor. State-issued voter IDs are required to be free, but an official Department of Transportation (DOT) memo instructed DOT workers not to tell applicants that the IDs were available at no cost. A state mailroom employee was subsequently fired for urging fellow employees to inform the public that the cards could be obtained free of charge.
For now, the law stands. So parishioners and staff from three local churches are offering a “Voter Outreach” program to help voters obtain the newly required IDs. Vans will be provided at St. Mark A.M.E. Church (1616 W. Atkinson Ave.), New Covenant Missionary Baptist Church (2315 N. 38th St.) and Metropolitan Missionary Baptist Church (1345 W. Burleigh St.) at 11 a.m. on Tuesday, Nov. 8, to transport people to the Department of Motor Vehicles to obtain the new IDs. Information will also be provided on how to obtain photo IDs and birth certificates, as well as the location of polling places. On-site registration will be available at the St. Mark A.M.E. Church Quality of Life Center (1641 W. Atkinson Ave.).
Because a business cannot stay around for the long haul if they are losing money, that means the end user of the healthcare services... us... must be feeding that 29% fee above and beyond the actual cost of care. Doing the math, that is more like an extra 41 cents paid for every $1 of actual health care costs.
Some years back, I seem to remember Herb Kohl making a comment like 3% is the expected level of profit when in the grocery business. That's a far cry from profit that is 10 times that. But, this is Capitalism at it's best!
I look at it as 3 ways of making money:
1) sell a Product. The customer gets something real (a widget), the business had to buy materials and pay someone to form those materials into that product.
2) provide a Service. The customer gets something done (haircut?), the business had to hire a worker to do the job.
3) sell a "promise". That's what insurance is. No widget in hand, no service actually being done. Customer pays a fee, not even an "investment", all as a gamble for in case something goes wrong. If all goes well, house does not burn down, car does not get in an accident, and the insurance company does not have to pay a claim. But if shit happens, customer gets sick or something, insurance pays out more than the total of the premiums that customer paid in. The only way the insurance company makes money is when most customers do not ever collect, their premiums pay for the statistical claim.
But watch what happens when the legal fine-print is written so that "promise to pay if..." becomes an "empty promise".
We all expect to use the insurance we pay for, at a level that exceeds what we pay into it. Healthcare is not insurance, it is becoming a necessary "utility" cost, take away the middle man's markup. -- Look at the policies available these days, the high deductible things that really are just "major medical", not routine healthcare.
We need a law change that says we can go to the doctor for routine healthcare, do not need that million dollar "insurance" umbrella to get served just the routine parts. Let us get guaranteed service, put down our $100 deposit to see the doctor to talk over an issue, get it looked at by someone trained.
Don't confuse gross profit with net profit. In the grocery business most stores have a 25% or higher gross profit with a 1% to 3% net, if they are lucky.
My doctor told me she loses 13% on me but makes 47% on those with private insurance. Some government insurance patients she might make 2-% but its just not worth her time. Overall she makes a profit but she could make bigger bucks if she can replace her Medicare paitents with private insurance patients. Therefore she is not accepting any more Medicaid or Medicare or anything else that has their reimbursement levels such as BadgerCare or HIRSP. She isn't dumping exisitng patients so I'm lucky. The whole point of becoming a doctor is to make a lot of money, like any profession. When the goverment decides how much you can charge, then we have a problem.