[lbo-talk] Parry: 119 Million is how many might flee to a public option

Michael Pollak mpollak at panix.com
Tue Jun 16 20:38:26 PDT 2009


[according to the health insurance industry, via Grassley. Here's hoping they're right.]

http://www.opednews.com/articles/Two-Key-Health-Care-Number-by-Robert-Parry-090611-519.html

June 11, 2009

consortiumnews.com

Two Key Health-Care Numbers

by Robert Parry

To understand the financial stakes involved in the battle over U.S.

health-care reform, it's useful to keep two numbers in mind: 50

million and 119 million.

The first number is the approximate total of Americans without

health insurance, a new market that the private health insurance

industry is salivating to get its hands on. The industry's hope is

that the government will mandate that those Americans sign up for

private insurance and offer subsidies for those who can't afford to

pay the premiums.

Fifty million new customers and government largesse to help pay the

bills would be a huge windfall for the insurance industry, which

otherwise faces a decline in its market because Baby Boomers are

reaching the age to qualify for Medicare and because rising

unemployment is draining the pool of Americans who have insurance

through their employers.

So, as Washington Post columnist E.J. Dionne Jr. noted, the 50

million potential customers explain why the insurance companies have

been so eager to sit down at the reform table.

"Their public-spiritedness reflects enlightened self-interest,"

Dionne wrote. "Health-care reform could bail out these interests by

adding the currently uninsured--fast approaching 50 million

people--to their customer base and by preventing more individuals

and employers from dropping insurance altogether."

But Dionne and other mainstream analysts miss the significance of

the other number--119 million--and why it is even a more powerful

incentive for private insurers to have the ear of key members of

Congress and White House insiders. It is the figure that the

industry and its backers cite as the potential exodus of disaffected

customers to a public health insurance option.

The industry's curious argument is that so many Americans would bolt

to a government-run program that the option simply can't be allowed.

"As many as 119 million Americans would shift from private coverage

to the government plan," one of the industry's chief protectors,

Sen. Chuck Grassley, R-Iowa, wrote in a column for Politico.com.

<snip>

As Grassley--the top Republican on the Senate Finance

Committee--noted in his column, "As many as 119 million Americans

would shift from private coverage to the government plan," putting

"America on the path toward a completely government-run health care

system. Eventually, the government plan would overtake the entire

market."

While many Americans might say private industry brought that

prospect on itself with its high-handed treatment of so many

patients when they are most in need--when they are beset with

serious illnesses--Grassley and other industry defenders see the

solution as simply to exclude the public option.

Yet, as these industry defenders in Congress would strip out the

public option, they appear to favor including a government mandate

that would compel Americans--under some penalty of law==to obtain

private insurance coverage either individually or through their

employers (with the help of government subsidies if necessary).

That, of course, would be the ideal course for the industry, killing

the public option--thus keeping the 119 million potential defectors

--and forcing another 50 million Americans to sign up whether they

want to or not. A win-win.

<end excerpt>

Full at: http://www.opednews.com/articles/Two-Key-Health-Care-Number-by-Robert-Parry-090611-519.html

Michael



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