Guaranteed Healthcare

Last week’s action by Congress to override President Bush’s veto of the Medicare Improvements for Patients and Providers Act (HR 6331) was a landmark step toward reversing the tide of privatization of Medicare over the last three decades. The votes in Congress were a resounding defeat for conservative policies and the lobbying efforts of the insurance industry. There was no ambiguity in the override votes — 383 to 41 in the House and 70 to 26 in the Senate, with 153 Republicans in the House and 21 Republicans in the Senate defying the president. The courageous leadership of Senator Edward Kennedy, long a champion of better access to health care, helped to head off a disastrous veto of this legislation despite his current medical problems.

The American Association of Health Plans (AHIP) is the national trade
group for some 1,300 private health insurers, which collectively
provide some kind of coverage for more than 200 million Americans. As
the voice of industry, AHIP’s web site boldly describes its goals “to
provide a unified voice for the health care financing industry, to
expand access to high quality, cost effective health care to all
Americans, and to ensure Americans’ financial security through robust
insurance markets, product flexibility and innovation, and an abundance
of consumer choice.” This post examines how successful the industry has
been in one of these goals --- the cost and affordability of coverage.

Most of us have by now heard many indictments of private health
insurance, from its inefficiencies and unaffordable costs to its
profiteering, cherry picking, and avoiding coverage of those who most
need insurance. What’s new and may be surprising to many people is
this: despite its size and political power, it is a dying industry.