Archive for the ‘Capitalism & Corporations’ Category

Health insurers refuse to limit rescission of coverage

Thursday, June 18th, 2009

– There’s a lot that bothers me about health care coverage here in the U.S.A.  I’ve written several times on it:


– But I don’t think I’ve seen anything that irritated and angered me quite like the story below.

– Insurance industry executives saying in front of congress that they will do basically anything they can to drop folks who are insured – rather than paying their legitimate claims.  Unbelievable!

= = = = = = = = = = = = = = = = = = = = = = =

cancelLawmakers ask three executives if they’ll stop dropping customers except where they can show “intentional fraud.” All say no.

Executives of three of the nation’s largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive.

The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation’s healthcare system.

An investigation by the House Subcommittee on Oversight and Investigations showed that health insurers WellPoint Inc., UnitedHealth Group and Assurant Inc. canceled the coverage of more than 20,000 people, allowing the companies to avoid paying more than $300 million in medical claims over a five-year period.

It also found that policyholders with breast cancer, lymphoma and more than 1,000 other conditions were targeted for rescission and that employees were praised in performance reviews for terminating the policies of customers with expensive illnesses.

“No one can defend, and I certainly cannot defend, the practice of canceling coverage after the fact,” said Rep. Michael C. Burgess (R-Tex.), a member of the committee. “There is no acceptable minimum to denying coverage after the fact.”

The executives — Richard A. Collins, chief executive of UnitedHealth’s Golden Rule Insurance Co.; Don Hamm, chief executive of Assurant Health and Brian Sassi, president of consumer business for WellPoint Inc., parent of Blue Cross of California — were courteous and matter-of-fact in their testimony.

But they would not commit to limiting rescissions to only policyholders who intentionally lie or commit fraud to obtain coverage, a refusal that met with dismay from legislators on both sides of the political aisle.

More…

The Battle for Pork Chop Hill (healthcare)

Tuesday, June 16th, 2009

obama-listening– A friend of mine is an M.D. and recently he responded to President Obama’s request for grass-roots input from the U.S. public on health care reform by writing a letter to the president detailing his thoughts.   He sent me a copy of his letter to see if I had any thoughts and/or comments.

– I found it a well-written, thoughtful letter full of excellent suggestions but when I responded to him, I found it impossible to get into the spirit of it.   To me, here in the U.S., the battle for serious health care reform, is a meaningless battle – a lot like those battles when our troops fought for mastery of particular hilltop in WWII and the Korean War.   The hills won one day at a terrible cost would be abandoned just a few days later as the conditions of the larger enclosing battles changed.

– Frankly, I don’t think there’s any chance that the U.S. will ever enact serious health care reform and in my response to my friend, below, you’ll see why.

= = = = = = = = = = = = = = = = = = = = = = = = = = =

Dr. H.,

Thank you for responding to the president’s request for input on our health care system.   What you’ve written here is an excellent public service.

I too have thoughts about all of this but I’m afraid I am less optimistic that calls for ideas will lead to any changes of significance.   My fear, as I’ve told you before, is that the medical and pharmaceutical industries in the U.S. have been thoroughly captured by large and powerful profit-centric corporate interests and that nothing will wrest control back from them short of a revolution.

Corporations vs. People

I don’t mean an armed revolution.   I mean a revolution in how we, as human beings, think about what the purposes of our national governments should be.   I’m fond of saying that, “One cannot have two number-one priorities.“  When it comes to deciding what governments are for, we certainly cannot.   We either have to place the welfare and happiness of the nation’s people first or the freedom of the nation’s corporations  to do whatever they want to do in their pursuit of profits.  We cannot have it both ways.

Once this choice is explained clearly and brought into our collective consciousness, I have little doubt that most people would feel that government’s number-one priority should be to maximize the quality of life for its citizens.   But, absent such explanations and awarenesses, our country, and most others as well, have been primarily molded by those who seek profit and power for themselves with little regard for the circumstances of others.

(As an aside, let me say that I am not against Capitalism.   Indeed, it is the engine that creates wealth and innovation in our societies.   I am only saying that at the very top of the decision pyramid, when corporate interests clash with the best interests of the people, the decision makers should opt for the good of the people.   Done even handedly, this might limit the range of actions of corporations but it would still be a level playing field for them and none would be disadvantaged verses the others.   More over, those decisions makers at the very top would be strongly instructed to stay out of the way of corporations to the maximum extent possible – save when the people’s best interests are at stake).

So, from my POV, the battle here is not how we can ‘fix’ health care.  It goes far far deeper than that.   Until we, as a people, decide that the happiness and well being of the nation’s people IS the highest priority of the national government, we will always have these battles.   And, given the drive and tenacity of those whose primary aims are for power and profit, we will usually lose these battles.

Beyond all of this, there are bigger problems for our country and the world yet looming.

Globalization

A healthy vibrant country can organize its finances to support free medical care for all of its citizens.  Several countries around the world have proven this decisively.   But, I’m not sure that a country whose finances are faltering badly can do this.   And our country is faltering badly at this point in its history.   Globalization was touted as our “friend”.   Indeed, as the “world’s friend”; better and cheaper products for everyone and improved standards of living for all.

life-and-debtBut, it hasn’t turned out that way for some of us.  Small countries, like Jamaica (see the Movie “Life and Debt“), have had food stuffs injected  into their markets at far lower prices than their local farmers could sell for.  The result is that the local farmers have all lost their farms and moved to the cities and now entire countries are completely dependent on the food stuffs supplied by the multinational corporate proponents of Globalization.  Sure, these folks can buy their food cheaper.  But now they’ve lost their independence, their jobs, their communities and they are utterly dependent on outside forces for their survival.   Globalization has made them into captive consumers.

And the rich nations have not escaped unscathed.   Multinational corporations seeking ever larger profits have convinced us in the U.S. to send our manufacturing and high-tech industries overseas.    They promised us lower costs on all the cheap goods  love to buy at Wal-Mart.  And for a while, that was fun.   But now we see the deep truth that a nation can only continue being rich if it produces and sells things of value.  And we’ve been turned into a nation of consumers and borrowers by Globalization and are getting poorer by the day.

The multinationals saw great opportunity some years back when they gazed at, for example, the U.S. and China.   They thought, “China is poor and has really cheap labor and the U.S. is rich and its labor is expensive.   If we connect these two situations, goods will flow from China to the U.S. and money will flow from the U.S. to China and we’ll set ourselves up as the folks in the middle coordinating the exchange and getting hugely rich.“  And, for the multinationals and China, it’s been a good deal.  But, for the U.S., the promises of Globalism have only impoverished us.

So, back to socialized health care.   I don’t believe that even if the U.S. wanted to implement serious socialized healthcare, that we could.   What would we pay for it with?   We are no longer a wealth generating nation.

So, that’s one of the big looming problems I was referring to.

Economies and Growth

The other has to do with the idea that most of our societies are built upon the principle that healthy economies are growth economies.  That’s worked well for us as a species up until now but it isn’t going to work much longer.   We’re coming to the limits of what the planet can supply for food and water and we’ve clearly exceeded what it can supply for renewable resources. We’ve built the very foundations of our societies on a non-renewable resource, oil, that will be running out soon.   And we’ve messed with the atmosphere’s Carbon Dioxide so badly that we’re well on our way towards a major climate shift.

And, in the midst of all of these dire warnings written so clearly on the wall of our future, the very best folks can come up with, as they consider and fret about the problems of the currently global economic downturn, is that with luck and perseverance, soon we’ll have our economies all back up and running just as before – with ever increasing growth, consumption and pollution as the cornerstones of our brave new world – same as the old unworkable, unsustainable world.

So, that would be the second problem – and it’s a big one.

Perspectives

pork-chop-hillIf you are down inside the workings of a specific nation and deeply involved and  invested in the concerns and problems of the local health care system, then it might seem reasonable to you to fight the good fight  for a better way of doing things.

But I would suggest that if one gets out of the trenches and ascends above the entire field of battle to a great height, one might see that in the bigger picture it isn’t going to matter if your brave and idealistic unit captures that small hill called “Healthcare”.   Bigger forces are afoot and visible from a greater height.

Those are my thoughts, Dr. H.   As always, I know I sound like a great pessimist.   But I don’t feel that way.   I think I am simply seeing the bigger picture.   I too am idealistic and I talk and rail and write about all of this almost daily.   But, in truth, I don’t do these things because I think I can really change them.   I act more because speaking the truth is right in and of itself and needs no other justification.

At the end of your letter, you listed the following points:

1. There is no place in medical care for “For Profit”.

2. Insurance companies’ priority is profit for shareholders.

3. Direct to patient advertising should be banned.

4. Medical Schools need to be induced to greatly increase graduation of primary care physicians, including loan forgiveness for those who go into primary care practice.

5. Providers should be incentivized for keeping patients healthy and minimizing expensive tests and medications.

6. We should have a single payer system that links patients and families with primary care providers that have support from social services, nutrition and exercise referrals and other support groups.

7. Hopefully we can move toward a society with less income inequality and social injustice where we prioritize education and opportunity and improve the quality of life for all.

I agree and applaud everyone of them.  And I say this not withstanding the fact that I think this battle over health care will be swept away by the larger trends that are afoot.

Again, thanks for writing your letter to the President.  I deeply admire your motives and your idealism.   Please do not take anything I’ve said here as a criticism – it is not intended to be.

Your friend,

Dennis Gallagher

Recession fails to dampen world’s appetite for arms

Friday, June 12th, 2009

– Nice to know that some parts of the world’s economy are doing OK.

= = = = = = = = = = = = =

sub230

STOCKHOLM – World governments spent a record US$1.46 trillion ($2.35 trillion) on upgrading their armed forces last year despite the economic downturn, with China climbing to second place behind top military spender the United States, a Swedish research group said.

Global military spending was 4 per cent higher than in 2007 and up 45 per cent from a decade ago, the Stockholm International Peace Research Institute, or SIPRI, said in its annual report.

“So far the global arms industry, booming from the wars in Iraq and Afghanistan and from spending increases by many developing countries, has shown few signs of suffering from the crisis,” SIPRI said.

However, the report added arms companies may face reduced demand if governments cut future military spending in response to rising budget deficits.

It also noted that US arms purchases – by far the highest in the world – were expected to rise less rapidly under President Barack Obama after sharp growth during the Bush Administration.

More…

Global Warming Will Wreck Your Business Plan

Friday, June 12th, 2009

Climate change will increase water scarcity, alter food production and dramatically change energy supply and migration patterns, according to a new report released by Lloyd’s, the world’s leading specialist insurance market.

Climate change and security: risks and opportunities for business, launched in conjunction with the International Institute for Strategic Studies (IISS), highlights that these changes will bring threats – and opportunities – for businesses.

Lloyd’s Chief Executive, Dr Richard Ward, said:

“Climate change will change the way we live and work, and will lead to greater competition for scarce resources, such as food and water. This is likely to result in increased economic nationalism and greater global insecurity, which will in turn add to the complexity and cost of doing business.”

Wow…this guy has some balls. To mention that shortages “such as food and water” will “add to the complexity and cost of doing business…” I mean who cares about all the death and destruction that will cause…can’t have the cost of business get higher.

He goes on to say:

“Every organization needs to have a clear understanding of its particular vulnerabilities and have in place a range of mitigation strategies. Their ability to understand what the impacts of climate change are going to be could not only protect them from threats but could also open up new business opportunities.”

Yea so you know, take a look at the world falling to pieces and see where you can get in there and make a buck.

IISS Director of Transnational Threats and Political Risks, Nigel Inkster, said:

“Climate change has the potential to act as an accelerator of global instability and has been recognized in both the USA and Europe as an issue affecting national security. Climate change could lead to increased competition between states for ever more scare resources and could in the worst case lead to inter-state conflict.”

more…

– Hat tip to The Naib at The Sietch Blog for this

Health Care Insurance in the United States

Sunday, June 7th, 2009

We just got our new healthcare costs for next year.   An 11.3% increase.   This means that out monthly healthcare costs will jump from $885.98/mo ($10,631.76/yr) to $986.40/mo ($11,836.80/yr).   That’s $1205.04 more per year.

And this is the cheapest insurance our provider offers.  We each pay a $2,500 deductable before we see any benefits coming back to us.

Am I deeply disgusted?   You bet.   I’m not going to get 11.3% more services for the extra money I’ll pay – just the same services as before.

I really wonder what is making healthcare costs rise so strongly here in the US if I’m not getting more services?

One thing I’d be willing to bet on:  The health insurer companies are not in danger of going under.  If their costs rise, they just pass it on to those who buy their policies.

Things are unraveling in this country day by day.   And those corporate interests who have captured our pharmaceutical and medical systems stand above the fray and continue to milk us for their profits.

Have you ever asked yourself why an operation that costs $30,000 in the US costs $6000 in India?   Oh, you say, “It’s because the quality of the medical care in there is sub-standard?”   Not so.   It is equivalent.   Read this: or this .   And if you are still curious, Google for “medical costs in India” or “Medical costs in Thailand” for more.   It’ll be an eye-opener.

New Zealand and its socialized medical system is looking better and better to me everday.

Green Shoots, Red Ink, Black Hole

Saturday, June 6th, 2009

– This article says what I’ve been saying for some time.   And, it’s got a lot of good data to support its points.  U.S. and multinational corporations in their obsessive quests for maximum profits have gutted this country’s ability to be a net wealth generator.  And now we’re locked into a fatal embrace with China in which we have to borrow ever more to maintain the facade that we’re solvent and they have to keep loaning it to us least our failure compromises what they’ve already lent us.   Now, who in their right mind thinks that can go on forever?  Nice eh?

– Give this article a good read all the way through – if you care about knowing which way the wind’s blowing – and about your future.

– – – – – – – – – – – – – – – – – – – – – – – – –

Truly terrifying data about the real state of the U.S. economy.

By Eliot Spitzer

I have an unfortunate sense that the “green shoots” in the economy that everyone is talking about are nothing but dandelions. Sure, forcing $1 trillion of taxpayer money—in direct capital, guarantees, and diminished cost of borrowing—into the banking sector has permitted the major banks to claim solvency for the moment. Yet we should not forget that this solvency has come not through a much needed deleveraging of the banking sector but rather from a massive transfer of the obligations of private banks to the public, with the debt accruing to future generations. And overall loan quality at U.S. banks is still the worst in 25 years and deteriorating at the fastest pace ever.

It’s a terrible mistake to confuse the momentary solvency of the financial sector and the long-term health of our economy.

While we have addressed the credit collapse, we have not begun to tackle the far more daunting, and more significant, structural problems in the economy. Instead of focusing on the green shoots, let’s examine the macro data that will determine our national prosperity in the next generation. These data are terrifying.

Start with the job front. Long term, nothing is more fundamental than good jobs to creating the middle-class wealth that must drive the economy. The creation of true middle-class jobs was the great success of our economy from 1950s through the mid-1990s. Consider the job data, in aggregate and by sector, from the past decade. (All data are from the U.S. Department of Labor, Bureau of Labor Statistics.)

Unemployment Rate by Industry
Year Unemployment rate Manufacturing Jobs
(in millions)
Serv. Jobs Gov’t. Jobs Total Jobs Population
1999 4.3 18.48 102.23 20.09 133 272
2004 5.6 14.3 108.64 21.5 138.38 292
2009 8.9 12.4 113.82 22.54 141.57 305

One-third of our manufacturing jobs have disappeared in a decade! And while population grew 12.1 percent over the decade, jobs grew by only 6.4 percent. The unemployment number, moreover, doesn’t count those who are “marginally attached to the labor force,” because even though they want to work and are available to do so, they have not sought a job in the past four weeks. In raw numbers, the total number of individuals counted as currently unemployed and those who are marginally attached is a staggering 15.8 million. That is an enormous mountain of job creation to climb.

More…

– Thanks to Rolf A. for research

Are medical costs the leading cause of U.S. bankruptcies?

Friday, June 5th, 2009

– This story and the one before it both illustrate what is so very wrong with the fact that the U.S. is the only industrialized western nation without universal health care.   And why?  Because corporate interests have captured our system and they are not about to forego their immense profits for the benefit of mere people.

– Read this to see how it could be:

– And read these to see the ways things are going very very wrong: and

= = = = = = = = = = = = = = = = = = = = = = = = = = = = =

At least 62 percent of all U.S. family bankruptcies result from medical expenses, reports a study released yesterday in The American Journal of Medicine—an increase from the 46 percent the reseachers found in 2001.

Analyzing data from 2,314 randomly selected 2007 (pre-mortgage-meltdown) bankruptcy filings revealed that most of those who had claimed bankruptcy because of medical expenses had health insurance, owned homes, were in their mid-40s and had middle class incomes.

High out-of-pocket expenses for those already insured and the loss of private insurance were the primary reasons for medical bankruptcy, report the study authors—many of whom are active members of Physicians for a National Health Program, a group that advocates for a single-payer system.

More…

Healthcare and Bankruptcy

Friday, June 5th, 2009

— By Kevin Drum | Wed June 3, 2009 11:03 PM PST

On the campaign trail, Barack Obama frequently cited research showing that medical expenses were a contributing factor in 55% of all personal bankruptcies.  A new study says he was wrong. It was actually more than that:

The study found that medical bills, plus related problems such as lost wages for the ill and their caregivers, contributed to 62% of all bankruptcies filed in 2007….Medical insurance isn’t much help, either. About 78% of bankruptcy filers burdened by healthcare expenses were insured, according to the survey, to be published in the August issue of the American Journal of Medicine.

….Most people who filed medical-related bankruptcies “were solidly middle class before financial disaster hit,” the study says. Two-thirds were homeowners, and most had gone to college.

The study does not suggest that medical expenses were the sole cause for these bankruptcies, but it does identify them as a contributing factor. The increase in such filings occurred despite a 2005 law aimed at making it more difficult for individuals to seek court protection from creditors.

Among bankruptcy filers, those without insurance reported average medical expenses of $26,971.  Those with private insurance reported average medical bills of $17,749.

More…

Milestone Study On Blood Pressure Medications Confirmed

Sunday, May 17th, 2009

diuretic– I wrote before here about these findings on the expensive blood pressure medicines that Big Pharma are pushing.   They are not the best options.

– A large study in 2002 showed clearly that simple diuretic pills which cost pennies a day work better than the expensive pills from Big Pharma.   Now, a new study has clearly replicated these findings.

– Once again, we have a contest between those who want what’s best for people against those who hold the maximization of profits as their highest goal.

– Big Pharma has millions and millions of dollars available to spread their message.   Do you think they are going to use these funds to inform the public that there are better and cheaper alternatives to their products?

“Evidence from subsequent analyses of ALLHAT and other clinical outcome trials confirm that neither alpha blockers, angiotensin-converting enzyme inhibitors, nor calcium channel blockers surpass thiazide-type diuretics (at appropriate dosage) as initial therapy for reduction of cardiovascular or renal risk”

– This particularly galls me because I take Diovan for borderline high blood pressure – and it costs me about $140 a month.   Nice, eh?

= = = = = = = = = = = – – – – – – – – – – – = = = = = = = = = = =

New research supports the findings of a landmark drug comparison study published in 2002 in which a diuretic drug or “water pill” outperformed other medications for high blood pressure. A scientific team including investigators from The University of Texas Health Science Center at Houston reports the findings in the May 11 issue of the Archives of Internal Medicine.

About one in three adults in the United States has high blood pressure, which, according to the National Heart Lung and Blood Institute (NHLBI), can lead to a host of health problems including heart failure, coronary heart disease, stroke and kidney failure.

The Antihypertensive and Lipid-Lowering Treatment to Prevent Heart Attack Trial (ALLHAT) is the largest high blood pressure treatment trial ever conducted and compared the impact of four classes of blood pressure drugs on 42,418 high-risk patients between 1994 and 2002. High blood pressure in adults is defined as 140/90 mm Hg or above.

“We looked at data since the trial ended to make sure our message hasn’t changed. And, it hasn’t. Diuretic drugs work as well or better than other medications in preventing heart failure,” said Barry Davis, M.D., Ph.D., study co-author, Guy S. Parcel Chair in Public Health and director of the Coordinating Center for Clinical Trials (CCCT) at The University of Texas School of Public Health.

More…

– Read this and get a copy to your doctor.  Chances are that he or she are getting most of their information from Big Pharma and Big Pharma’s certainly not going to tell them.

– Extra credit reading:

American Chemistry Council: Balancing Trivia With Toxic Violence

Saturday, May 16th, 2009

It’s common knowledge that given a choice of two tasks, of varying impact, most people in the civilized world will choose to do the easiest, even if the outcome is of little or no importance. Given the choice of walking a mile to your destination, or getting in the car and driving a mile – regardless of the environmental and social impact of cars – most people will choose to drive. Or rather, “choose” to drive.

I put the word “choose” in quotes because it’s not really a choice at all; civilized society conspires to make the option that is of most benefit to the capital economy the most favourable “choice”, even if it means that the “choice” runs counter to what most people would do given a genuine freedom and an absence of persuasive factors (e.g. advertising, social engineering, lack of alternatives) that steer the individual in the direction of the best choice for the economy. Recycling is a serious offender, not because there is anything intrinsically bad about recycling most materials, but because it is presented by society as an environmental “choice”: you can choose to recycle and be “green” or you can choose not to recycle and not be green.

What other choice is there? What about choosing to do any number of things that are substantially more important than recycling; like reducing your primary consumption of goods, repairing what you already have, reusing what others have no need of, bartering or exchanging goods and services, or just giving stuff away because it means the recipients will buy less of that stuff new. And then there is not filling the skies with toxic gases; not pouring millions of gallons of effluent into seas and rivers; not garnishing the biosphere with a cocktail of persistent chemicals then leaving others to sort out the mess later.

More…

– Thanks to The Sietch Blog for this one.