HEALTHCARE IV: DEATH SPIRALS, PROFITS AND PAYCHECKS - WINNERS AND LOSERS

LETS TALK HEALTH CARE - "DEATH SPIRALS", PROFITS AND PAYCHECKS

First, sorry to repeat some of the "insurance company profits" in this article, along with other information presented here for the first time. I do so because I have not seen this information mentioned in any other place - print or electronic media - during the current debate on health care.  According to the CBO and the Association  of Actuaries, there is no "death spiral" other than that caused by the Republicans by creating a fire storm and rocking the delicately balances insurance system that was crafted under the ACA.  Changes and re-balancing?  Yes.  Improvements and tweaks? Sure.  Throw the baby out with the bath water?  Really?  Rocking the boat until it takes on water and then pointing to the water and shouting, "the ship is sinking!"  Read on. 

As the debate over health care continues, here comes some additional "alternative facts." The idea that the ACA is in a "death spiral" sounds suspiciously like the "death panels" fake news that was spread around during the debate on "Obamacare." Needless to say, the insurance giants - all of whom signed on and supported the ACA in the end based on the great expansion of new "customers" (either required to get insurance or subsidized with federal funds) that would enrich their companies, are NOT losing money and ARE NOT in a "death spiral." In fact, 8 million of more folks got insurance for the first time - and that means PAID FOR INSURANCE, subsidized or not, due to the ACA. The balance of those covered via ACA were the working poor who earned enough money so that they didn't qualify for standard Medicaid, but were covered through the "enhanced" Medicaid segment in Obamacare. "Working poor" were defined by income as those who were earning modest income but not enough to afford the purchase of insurance.

The next category - new insurance customers - BY THE MILLIONS - were required to have health insurance, through their employment, or through the private purchase of insurance either directly or through the "exchanges" provided for under the legislation. For individuals or families who could not afford to buy insurance, federal subsidies would be provided based on an income formula. Poorer folks would be provided larger subsidies so that insurance would be "affordable" even for those with lower income, lesser support for those with more earnings. In addition, employers with more than 50 employees could no longer refuse to cover their employees and are required to provide health care insurance for their workers.

So, what is all this talk about "death spirals?" According to the Trump, Ryan, and the Republican supporters of their proposed "replacement" (read retreat from) health care bill, the ACA is fading away as the large insurance companies retreat from offering coverage and, as a result, competition and choice are reduced and premiums go up. They point to "1/3 of the counties in America" as having only 1 insurance company offering coverage in 2017 as compared to 4 or 5 when the program first appeared. Of course, that means, that in 2/3 of America's counties, more than one insurance company offers coverage. And, the Republicans fail to mention that while premium rates have increased, that increased has slowed significantly compared to the failed health care system before the ACA.

Is this really a "death spiral" and is Obamacare "collapsing?"

The Republicans want you to think that, regardless of subsidies, the private-for-profit insurance companies are withdrawing from offering coverage because they are losing large sums of money and have no option but to stop participating in the exchanges attached to the ACA. This is ABSOLUTE NONSENSE. Don't let your Republican "friends" pull this one on you. Here are the facts:

All American corporations, for-profit and non-profit, are required to file annual financial reports on earnings each year in addition to filings with the IRS. The most recent filings - recorded in 2016 for the 2015 year, shows the following financial condition for three of the largest insurers in the nation - Humana, Aetna, and Blue Cross/Blue Shield.

HUMANA: Humana reported annual after-tax PROFITS of $1.1 to $1.2 BILLION each year from 2012 to 2015. In addition, they did a stock buy-back in 2014 with extra cash-on-hand of $4.6 BILLION. Needless to say, their stock on the Exchange has shot up quite well, thank you.

AETNA: Aetna desribed 2015 as "a banner year." In fact, Aetna also had so much cash on hand that they put in an offer to purchase Humana for $37 BILLION! By 2016, Aetna's after-tax profits went from $1.9 BILLION (2013) to $2.43 BILLION (2015). Some financial strain.......

BC/BS: Their 2016 report states that "overall profitability for industry leaders has improved based on reporting as of June 30, 2016." The BC/BS parent company was recently criticized for sitting on a cash surplus of $9.9 BILLION. Poor is me.......

So much for the Ryan position that the ACA is "imploding" because the insurance industry is losing money by participating in a "failing" insurance system. And, of course, we should simply ignore the fact that 14 million Americans will lose health care coverage initially and some 24-26 million in a few years. And, also ignore the fact that the hospitals and health care systems have expanded - including some 2.2 million new jobs - since more Americans were able to access health care professionals and facilities beyond the Emergency Rooms.

And, now the CBO says that insurance rates will spike up to 20% in the first year of the Republican plan as millions fewer will be covered, and companies are no longer required to cover their employees. Higher costs, less coverage, more hurt. And, for what? Save the "failing" insurance companies who are experiencing record profits and are flush with cash? Or, is the agenda really all about tax cuts for big corporations and the uber wealthy? This is beyond a disgrace. It is an OUTRAGE!

And, speaking of the “uber wealthy”, let’s take a look at the industry CEO’s compensation as an element in the saga of healthcare premiums.  

When you hear Paul Ryan say Obamacare is collapsing....

These high salaries have attracted some commentary– both positive and negative– about how they affect health insurance and healthcare altogether.
Wendell Potter, former public relations executive for Cigna, where CEO David Cordani raked in a $14.5 million salary in 2014, said, “There’s no doubt that one of the reasons why Americans pay more for health insurance and for healthcare than people in any other country in the world is because of this high executive compensation.”

And, of course, they all have employer-covered health care insurance….

Stand Up! Speak Out! March On! Bobby J