By Chuck Smith-Dewey
healthinsurance.org founder & ceo
June 1, 2009
Senator Ben Nelson (D-Neb.), a former CEO of an insurance company, has been parroting the talking points of the health insurance industry line in opposing a public health insurance option in any health reform legislation. In an interview in early May he called it a “deal-breaker.” He’s the only Democrat to publicly oppose a public plan. His opposition was not passive as he pledged to gather together a coalition of other Senators to help defeat a public plan.
According to the non-partisan watchdog Center for Responsive Politics, over the course of three campaigns Nelson has accepted more than $2 million in campaign contributions from the health care industry, which begs the question: “Who does Nelson represent?”
Another citizen’s group, Change Congress, has called Nelson out on this conflict of interest and has begun mailing information on Nelson to Nebraska residents, as well as whipping up a storm on the Internet.
Nelson has quickly responded to the heat, saying he would now consider a public plan.
All good now? No, not so fast. Nelson’s new-found openness is only skin deep. As reported on The Thom Hartmann Program last week, Nelson is proposing a seven-year wait on any such public plan, and that such a plan only be triggered if the private health insurance industry fails to meet a set of goals defined for it by Congress.
Does this strike anyone else as being disingenuous? The old bait-and-switch. The shell game. The emperor has no clothes. “Pay no attention to the insurance industry shill behind the curtain.”
It’s important to have a public plan option because of the nature of capitalism. Health insurance companies are not in the business of delivering health care … they are in the business of delivering profits to their shareholders. In fact, the more claims they deny, the more profits they make. There is a natural disincentive to pay benefits.
The United States spends six times more per capita on administrative costs of health care than any Western European nation. That’s not care; that’s paper shuffling and profit taking.
Many studies have shown the administrative costs of health care eats up more than 20 percent of health care expenditures. Physicians for a National Health Program (PHPH), a national group of more than 16,000 physicians, put administrative waste at 31 percent. They report the average overhead of private U.S. insurers to be 11.7 percent, which they compare unfavorably with the 1.3 percent overhead on Canada’s single-payer system, and the 3.6 percent of American’s current public health plan for seniors, Medicare.
So the first round of public pressure has gotten Nelson to change his tune, but he’s really not in step with the rest of the chorus line. He needs constant “encouragement” to break rank with the industry that is not only where he came from, but which continues to suckle him.
We call on all Nebraskans to make their voices heard:
While you’re at it, we note that 83 percent of Nelson’s insurance industry contributions come from outside of Nebraska. Which reinforces the earlier question: “Whom does Nelson represent?” You might want to ask him.
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Dr. “H” Rob Huizenga of “The Biggest Loser” knows that education equals motivation for folks who need to change unhealthy behavior. The individual mandate could do the same: getting more folks back to doctors for the treatment – and education – that they need. (Photo courtesy of NBCUniversal)
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For anyone who wonders how the battle over health reform came to dominate so much of the nation’s attention over the past few years – and whether the battle will ever end – Paul Starr provides answers in Remedy and Reaction: The Peculiar American Struggle over Health Reform.
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