Health care bailout?
The libertarian CATO Institute has a very interesting take on the health care reform legislation moving through Congress: It is a bailout for big insurers. Interviewed by The Hill, Michael Cannon, CATO's director of Health Policy Studies explains:
"Now that the 'public option' is dead, both the Left and the Right should be able to agree: the Senate bill is nothing but a $450 billion bailout of the private insurance companies.
In fact, the bailout may be several multiples of that figure.
That $450 billion just represents checks that the Treasury would write to private insurance companies. The Reid bill would also force nearly every U.S. citizen to fork over cash to the private insurance companies— no matter how lousy a deal they offer. A recent CBO memo reveals that Reid has been meticulously working behind closed doors to conceal the full cost of his private-insurer bailout."
On its face, the argument seems contradictory. After all, the health insurance industry has been fighting reform tooth and nail. Or has it? The health insurance lobby, represented by America's Health Insurance Plans, tried to cut deals with Congress on a number of occasions, disappointing many members. The organization did finally release a study demonstrating how health care reform would increase costs but only when it appeared that they had been cut out of any deals on health insurance reform package.
Further, an August Business Week article revealed the behind the scenes maneuvering of the big health insurers:
"In August 2007, the company [United Healthcare] hired Sommer, who previously headed global lobbying for Goldman Sachs (GS).He quickly built a new Washington team of former congressional aides and other K Street operatives. One key acquisition: Cory Alexander,former chief of staff for House Majority Leader Steny Hoyer (D-Md.), an influential moderate Democrat. Alexander had been lobbying for the huge mortgage financier Fannie Mae (FNM).Today, Sommer directs a team of nearly 50 people from UnitedHealth's spacious Washington office on Pennsylvania Avenue, equidistant between the Capitol and White House. The company spent more than $3.4 million on in-house and outside lobbying in the first half of 2009.
Sommer has retained such influential outsiders as Tom Daschle, the former Democratic Senate Leader who now works for the large law and lobbying firm Alston & Bird."
In the meantime, Senator Reid's tort reform amendment is a joke. Read about it at Overlawyered.
"Now that the 'public option' is dead, both the Left and the Right should be able to agree: the Senate bill is nothing but a $450 billion bailout of the private insurance companies.
In fact, the bailout may be several multiples of that figure.
That $450 billion just represents checks that the Treasury would write to private insurance companies. The Reid bill would also force nearly every U.S. citizen to fork over cash to the private insurance companies— no matter how lousy a deal they offer. A recent CBO memo reveals that Reid has been meticulously working behind closed doors to conceal the full cost of his private-insurer bailout."
On its face, the argument seems contradictory. After all, the health insurance industry has been fighting reform tooth and nail. Or has it? The health insurance lobby, represented by America's Health Insurance Plans, tried to cut deals with Congress on a number of occasions, disappointing many members. The organization did finally release a study demonstrating how health care reform would increase costs but only when it appeared that they had been cut out of any deals on health insurance reform package.
Further, an August Business Week article revealed the behind the scenes maneuvering of the big health insurers:
"In August 2007, the company [United Healthcare] hired Sommer, who previously headed global lobbying for Goldman Sachs (GS).He quickly built a new Washington team of former congressional aides and other K Street operatives. One key acquisition: Cory Alexander,former chief of staff for House Majority Leader Steny Hoyer (D-Md.), an influential moderate Democrat. Alexander had been lobbying for the huge mortgage financier Fannie Mae (FNM).Today, Sommer directs a team of nearly 50 people from UnitedHealth's spacious Washington office on Pennsylvania Avenue, equidistant between the Capitol and White House. The company spent more than $3.4 million on in-house and outside lobbying in the first half of 2009.
Sommer has retained such influential outsiders as Tom Daschle, the former Democratic Senate Leader who now works for the large law and lobbying firm Alston & Bird."
In the meantime, Senator Reid's tort reform amendment is a joke. Read about it at Overlawyered.
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