Healthcare: The argument!

I have been seeing this unfold now for the past 6 months to a year. Because we have a huge budget deficit we all know we must cut spending. I have also argued here that we need to increase taxes on the wealthiest 1% of our population. Today, Republican Rep. Paul Ryan came out with his major spending cut proposal which focused on getting rid of Medicare as we know it in favor of a voucher system for the elderly to purchase health insurance. The Democrats are already out there saying the Republicans want to kill Medicare, funding for Planned Parenthood and PBS and aren't even considering taxing the wealthy or cutting subsidies for the Oil companies and Banks.

I wouldn't be surprised that a compromise might be proposed, whereby Democrats agree to some cuts in Medicare, while Republicans agree to small tax increases on the wealthy. But I am afraid that this will not be enough to close the gap in our debt. We can't use the argument that taxing the wealthiest will cost jobs as they will have less money to help grow and invest in America. They aren't really helping now nor have they through the entire time they have had the Bush tax cuts.

Health Ins. reform and the Senate seat in Massachusetts

I am still tracking the price of Healthcare stocks since December 4th when everyone learned that the Public Option for Healthcare insurance reform was dead. Since that time both United Healthcare and Wellpoint stock charts have soared. To be more precise, United Healthcare's stock has risen a whopping 29.5% and Wellpoint has gained 28.5%. I have said the best way to know if the healthcare legislation will be good for the average American or for the Heath Insurance companies was to follow the price of these stocks. As many can clearly see, the proposed legislation is good for the Health Insurance companies as they are getting about 30 Million new members to their ranks without much restriction on cost containment thanks to Republicans and Blue Dog Senators efforts like Sen. Ben Nelson of Nebraska's efforts to try to kill any meaningful legislation.

In the charts above, the answer is clear and you can't slap lipstick on this pig to make it look better. This may be why, at least in Massachusetts, the Democrats may lose the former Democratic seat held for 47 years by Ted Kennedy. He is turning in his grave over this mess.

Are the polls right on Healthcare and if so, what does it mean for 2010 midterm elections?

The media has used the healthcare debate to claim that Republicans stall tactics and Filibustering will result in them gaining about 25 to 30 seats from the Democrats in the 2010 midterm elections. So let's take a look at this claim and look at the polls as to where the Public is in the latest polls on Healthcare.

According to the Poll of Polls, dated 12/9/09, 54% of Americans are in support of the Public Option.

One Poll conducted from Dec. 16 to Dec. 17th asked this question:

Would you favor or oppose creating a public health insurance option administered by the federal government that would compete with plans offered by private health insurance companies? Here's the data breaKdown:


I think the data above is clear. As you can see, 57% of Independents favor the Public Option. All that nonsense you hear by Republican Senators, who are against the Public Option, that the majority of Americans are against it, is just plain bunk. Of course, you can see clearly those surveyed, who are Republicans, are against it. But Republicans are a minority Party today and between Democrats and Independents that represents about 75% of the population. It's a shame the Republicans can get the media to go along with their myths. Former Congressmen like Dick Armey spread the lies and the media doesn't call them on it often enough. It never used to be that way. As I have said here many times, I had voted for Reagan. There was more middle ground in politics then. It seems now that has changed for the foreseeable future. Where are those reasonable Republican Senators anymore? Only a few remain like Dick Lugar and Bob Dole. They are in high demand and that is the Republican which will eventually emerge if the Republicans are to once again become a relevant Party to jointly work for the common good and yet provide the necessary balance of power.

I personally believe today's Republican leaders like Mitch McConnell, John Kyle, Richard Shelby, Saxby Chambliss, Chuck Grassley, Sam Brownback, John Cornyn, David Vitter and others in the House of Representatives have miscalculated. I can't see Independents voting for Republicans in midterm elections given the poll data above on the Public Option. It does appeal to their base but their base has shrunk. So while popular with the base, they will lose more seats in 2010 if this fails to get approved and it will make Democrats more determined than ever to get a more than 60 vote majority in the Senate. What do you think?

How will the Healthcare legislation work for the average American? Watch the stock price!

Well, several days have passed since I posted about the Healthcare Bill that the Senate committee of 10 approved and that we are waiting for the CBO scoring on the idea. Remember I said, the word has already been leaked to their patrons, the healthcare company execs and they know how it will affect them. I said we had no clue as to whether the new compromise to kill the Public Option vs. expanded Medicare for those age 55 and above w/o any insurance, was good for the average American. But I said to watch the stock price of the Heath Insurance companies to get a read. If the stocks went up, then it was bad for the average American, but good for shareholders and if the price of their stocks went down, it was bad for shareholders and good for average Americans. Well, the data is in on at least the past 4 days when the healthcare Insurance bill has been announced, even though we don't know any details.

Looking at the charts above for the last 4 data points, what do you conclude? To me it is obvious but I would like you to state it clearly here. For example, United Healthcare has gained 10.2% since the deal was known 4 days ago. Wellpoint gained 6.8% in those same 4 days. Do you have ANY stocks which have gained that amount in just the past 4 days? I doubt it! It's because many see the healthcare insurance companies still able to reap big profits, at the expense of average Americans. They like not having competition. The Public Option would have given them good competition. Now there isn't any.

Thanks for any comments posted.

Private Healthcare versus the Public Option: What's the simple argument?

I thought I should post something today on the healthcare debate that was unique. With all the debate and arguments made that were trying to trash the Public Option being included in the final Bill in the Senate, no one has made the most obvious reason why the Government is the answer to this problem and NOT the Private health Insurance companies. You see the Republican argument to kill the Public Option is that we shouldn't have Government in the business of providing Insurance to Americans, the uninsured should let the free market solve the problem. let me state what's wrong with that argument in plain, clear language. They haven't solved the problem the past 150 plus years so why will they start now? I don't see anything wrong with buying Private Health Insurance, as many can afford it, but, there are many who can't, and what should their fate be?

When I was young, my Mom worked for Blue Cross and Blue Shield (BCBS) in Massachusetts as a Claims processor. My son-in-law works for BSBS of VT and I have consulted to many of the BCBS plans as a Consultant to them. There wasn't the problem then with worrying about coverage by the Health Insurance companies in those days. In those days the BCBS company and Association was a Not-For-Profit business. But they watched some of their competitors making more salary and bonuses and eventually it caught them too. The Free Enterprise system became the biggest attraction and draw to these companies' executives in the 1980's and many began to look for ways to make money and they drifted away from their core mission and noble cause and, many say, became just like any other Health insurer.

You see the main difference is philosophical between Democrats, who favor Government involvement, and the Republicans, who favor small Government. The result of the Free market economy can be seen clearly for what it is, a Boom or Bust cycle. That's what has happened to our economy since my parents were born in the early 1900's, and that is what always happens in Free markets. They create boom and bust cycles and big bubbles. Right now we are going through a boom cycle for the Insurers and that is why they are fighting this so forcefully. But when they get into trouble, watch who asks for a bailout by government. Americans health care can not be left to Boom or Bust cycles. We need a healthcare system that is more constant and consistent and helps all equally, irrespective of the financial resources of the individual. Quality Healthcare should be a right for all our citizens and the Government is the only guarantor for the long haul, just like it protects us from enemies abroad who would wish to change our way of life.

Health Insurance: Give me a break!

This story got me riled up today. Yesterday, I received a document from Blue Shield of California informing us that my wife's health insurance Monthly payments had to be increased as costs have risen. This insurance is only for her individual healthcare, as I am on Medicare. Her new Monthly health insurance bill will go from about $850/month to $1,040/month. Can you believe that?! And she has a $2,000 deductible, the highest deductible they offer! Then today I received my Insurance monthly bill for my Auto Insurance (3 cars including a Jaguar Convertible and a BMW), my House insurance (we live in Marin County, CA and you know there aren't houses there for under $1 Million and we have earthquake insurance as well), our Furnishings policy including art and Jewelry, and an Umbrella policy covering everything over a certain specified amount. That monthly bill totaled $615/month! Now compared to the Health Insurance that is incredibly cheaper.

President Obama is on the right track. The cost of Health Insurance is way out of whack and needs to be fixed. It isn't like we can't pay for it, but can you imagine what's happening to people who lose their jobs and get a bill for $1050/month? It's outrageous! It would be different if we had a lot of operations and procedures, but we don't. Shame on the Health Insurance companies. Why did they ever change from Non-Profit to For-Profit (as much as they can stick into their greedy pockets!) It wasn't always this way.