"Why Does Everyone Bow Down to the Health Insurance Industry?" by Barbara Ehrenreich.

Hi;

Below is the Monday, September 24, 2007 article titled "Why Does Everyone Bow Down to the Health Insurance Industry?" by Barbara Ehrenreich.

The title asks a dumb question. The answer is obvious. The health insurance industry has bought the politicians in both of the major political parties. The health insurance industry did this by financing their election campaigns. Now the politicians holding office will do the bidding of the health insurance industry or the health insurance industry will support their opposition in the next election cycle.

All claims by the health insurance industry that they will always be a more efficient provider of health insurance than the federal government are patently false. The health insurance industry does not have to be more efficient than anybody. The health insurance industry can be, and is, grossly inefficient because it can buy off Congress and the White House to make sure that it never gets any competition, or is replaced with a national single payer health insurance program that could easily be more efficient than they are.

Once again, Americans are being duped into believing the obviously false claim that capitalism provides any product or any service in the most efficient manner. Also, that the capitalist measure of efficiency is a valid measure of efficiency, also that the capitalist measure of efficiency should be the standard by which all services and products should be measured to determine whether society should produce them

Recall that in all cases that whenever capitalists measure efficiency of the production of a product or service it is after the capitalist, or the capitalist enterprise, has externalized as many of their costs as possible. That is, this is after they have forced the rest of society to pay for costs they should incur in order to accurately measure the efficiency of the production of the product or service they produce.

My single best example of this is the production of electric power by coal-fired power plants. By the standard capitalist measure of efficiency coal-fired power plants are low cost providers of electric power. Only hydroelectric power is cheaper. The problem is the standard capitalist measure of efficiency is determined after major costs, that should be considered to determine the real cost of electric power produced by coal-fired plants, were externalized. That is the rest of society has to pay for them. Some of the externalized costs are:

(1) The cost of reclaiming thousands of operating and abandoned, strip and tunnel coal mines.

(2) The cost of cleaning-up thousands of miles of rivers that have been, and are being, contaminated by abandoned and operating coal mines.

(3) The social and environmental costs of mountain top coal mining.

(3) The public health costs of mercury, cadmium, sulfur dioxide, nitrogen dioxide, fly ash and other coal-burning related pollution.

(5) The environmental costs of mercury, cadmium, sulfur dioxide, nitrogen dioxide, fly ash and other coal-burning related pollution.

(6) The cost of building and maintaining public dams, locks, canals and river ways for the transportation of coal by barges.

In closing, the above observations, analysis and criticisms of capitalism are the standard skepticism of capitalism by socialists for well over one hundred years. In my opinion, this is why the socialists are maligned and vilified. They have been very good skeptics of all claims on the superiority of capitalism. That is, they are not maligned and vilified because they are advocating an alternate economic system. The alternate economic system socialists are advocating does not have even a remote possibility of replacing the American capitalism in the foreseeable future, but their skepticism is bitingly accurate and immediately painful.

John P. Stoltenberg, P.E.
N8362 State Highway 67
P.O.Box 596
Elkhart Lake, WI
53020-0596
920-876-2184
jpstolten@verizon.net

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http://www.alternet.org/healthwellness/63352/
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Why Does Everyone Bow Down to the Health Insurance Industry?

By Barbara Ehrenreich, Barbaraehrenreich.com. Posted September 24, 2007.

After facing down the Third Reich, the Japanese Empire, the U.S.S.R., Saddam Hussein, the United States has met an enemy it dares not confront -- the American private health insurance industry.

Bow your heads and raise the white flags. After facing down the Third Reich, the Japanese Empire, the U.S.S.R., Manuel Noriega and Saddam Hussein, the United States has met an enemy it dares not confront -- the American private health insurance industry.
With the courageous exception of Dennis Kucinich, the Democratic candidates have all rolled out health "reform" plans that represent total, Chamberlain-like, appeasement. Edwards and Obama propose universal health insurance plans that would in no way ease the death grip of Aetna, Unicare, MetLife, and the rest of the evil-doers. Clinton -- why are we not surprised? -- has gone even further, borrowing the Republican idea of actually feeding the private insurers by making it mandatory to buy their product. Will I be arrested if I resist paying $10,000 a year for a private policy laden with killer co-pays and deductibles?

It’s not only the Democratic candidates who are capitulating. The surrender-buzz is everywhere. I heard it from a notable liberal political scientist on a panel in August: We can’t just leap to a single payer system, he said in so many words, because it would be too disruptive, given the size of the private health insurance industry. Then I heard it yesterday from a Chicago woman who leads a nonprofit agency serving the poor: How can we go to a Canadian-style system when the private industry has gotten so “big”?

Yes, it is big. Leighton Ku, at the Center for Budget and Policy Priorities, gave me the figure of $776 billion in expenditures on private health insurance for this year. It’s also a big-time employer, paying what economist Paul Krugman has estimated two to three million people just turn down claims.

This in turn generates ever more employment in doctors’ offices to battle the insurance companies. Dr. Atul Gawande, a practicing physician, wrote in The New Yorker that ''a well-run office can get the insurer's rejection rate down from 30 percent to, say, 15 percent. That’s how a doctor makes money. It's a war with insurance, every step of the way.'' And that’s another thing your insurance premium has to pay for: the ongoing "war" between doctors and insurers.

Note: The private health insurance industry is not big because it relentlessly seeks out new customers. Unlike any other industry, this one grows by rejecting customers. No matter how shabby you look, Cartier, Lexus, or Nordstrom’s will happily take your money. Not Aetna. If you have a prior conviction -- excuse me, a pre-existing condition -- it doesn’t want your business. Private health insurance is only for people who aren’t likely to ever get sick. In fact, why call it “insurance,” which normally embodies the notion of risk-sharing? This is extortion.

Think of the damage. An estimated 18,000 Americans die every year because they can’t afford or can’t qualify for health insurance. That’s the 9/11 carnage multiplied by three -- every year. Not to mention all the people who are stuck in jobs they hate because they don’t dare lose their current insurance.

Saddam Hussein never killed 18,000 Americans or anything close; nor did the U.S.S.R. Yet we faced down those "enemies" with huge patriotic bluster, vast military expenditures, and, in the case of Saddam, armed intervention. So why does the U.S. soil its pants and cower in fear when confronted with the insurance industry?

Here’s a plan: First, locate the major companies. No major intelligence effort will be required, since Google should suffice. Second, estimate their armed strength. No doubt there are legions of security guards involved in protecting the company headquarters from irate consumers, but these should be manageable with a few brigades. Next, consider an air strike, followed by an infantry assault.

And what about the two to three million insurance industry employees whose sole job it is to turn down claims? Well, I have a plan for them: It’s called unemployment. What country in its right mind would pay millions of people to deny other people health care?

I’m not mean, though. If we had the kind of universal, single-payer, health insurance Kucinich is advocating, private health insurance workers would continue to be covered even after they are laid off. As for the health insurance company executives, there should be an adequate job training program for them – perhaps as home health aides.

Fellow citizens, where is the old macho spirit that has sustained us through countless conflicts against enemies both real and imagined? In the case of health care, we have identified the enemy, and the time has come to crush it.

Barbara Ehrenreich is the author of thirteen books, including the New York Times bestseller Nickel and Dimed. A frequent contributor to the New York Times, Harpers, and the Progressive, she is a contributing writer to Time magazine. She lives in Florida.