Congressman Stupak and insurance industry whistle-blower Wendell Potter co-hosted a telephone press conference today to further discuss insurance industry abuses. While various Congressional subcommittees have held hearings on the topic, it's clear that we are only beginning to scratch the tip of the iceberg.
Stupak and Potter discussed two insurance industry processes by which they protect their profit margins: rescission and purging. Rescission, the more discussed of the two, is the process by while insurance companies terminate coverage for their customers in the personal insurance market if they become sick. Stupak noted that victims of rescission often pay their premiums for years, "lulled into a false sense of security" and adding to the insurance company's profits. Then, when they become ill, "these companies don't honor their agreements."
The call also touched on purging, rescission's lesser-known twin brother. Because of HIPAA, passed in 1996, it is illegal for insurers to rescind coverage from group policy holders. But don't worry: the clever insurance industry has found a way to get around that. Through purging, insurance companies raise the rates for small businesses to the point that they can no longer afford to pay and are forced to cease buying coverage, thus saving the insurance company money.
After discussing these twisted, profit-padding practices, Wendell pointed out that this is how insurance companies try to keep their "medical loss ratio" as low as possible. As a result, "we have in this country a Wall Street driven healthcare system."
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I am in favor of healthcare reform. That doesn't mean I want a bloated government and Andy "Darth Vadar" Stern running it. Government employees are so notoriously incompetent that the term "bureaucrat" has become synonymous with incompetence. Have you been to the DMV lately? Why on earth would a sane person trust their health to a corrupt, broken government? Because ACORN Andy Stern said so? You can be pro-union and a good union member and still disagree with the policy of the leadership. Think for yourself. Stern's ever growing treasury will be the primary beneficiary, not you, the patient. Profit is a factor whoever runs healthcare, because healthcare is a business. Even socialists would be making decisions based on the bottom line. Our government is so corrupt that a handful of elected officials even voted to continue funding ACORN after they were caught on tape using the organization as a front for child prostitution. I wouldn't trust them with my cellphone, let alone my life, They can't justify the policy because they can't explain it and won't back off from it. The people have spoken and we're not interested. The PC ThoughtLords of the day are quick to brand protesters as "right wing," "republican," "crazy," "extremist," "hate," "racist," and "divisive." This is merely an attempt to discredit dissenters and discourage rank-and-file democrats from hearing what the complaints are, or joining in. You know who the tea party people are? Just regular people. Just middle class Americans with legitimate questions and concerns. The people have spoken and the answer is No. When a government ceases to respect the wishes of the citizenry, it ceases to be a democracy. What we have now is looking more and more like a socialist regime. Will SEIU leave this post up to encourage healthy dialogue and debate? Or will they censor out any real opposition to a plan they can't explain? SImply blaming "evil corporations" is an insult to your intelligence. It's not that simple. If government really wanted to control cost in the healthcare industry, they could cap insurance premiums and/or check the trial lawyers driving up premiums with malpractice lawsuits. But that won't happen. Why? Trial lawyers are one of the largest donors to the Democratic Party. I guess I must be a "right wing nut" for making an intelligent and well-reasoned argument against a policy that most American non-politicians find deeply disturbing.