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The White House is concerned about viral emails which question the wisdom and policies of the legislation given the title of “America’s Affordable Health Choices of 2009″. Also known as ObamaCare. So, David Axelrod, Senior Advisor to the President, has sent his own viral email in response. Ok. That is fair enough. This email found its way to my computer and I have read it completely.

It consists of three groups of eight statements designed to rebut some of the statements made by in the emails the White House objects to. They are:

8 ways reform provides security and stability to those with or without coverage

8 common myths about health insurance reform

8 Reasons We Need Health Insurance Reform Now

I have printed the entire email, including the three lists, below. It is printed in green. Nothing was left out (assuming I received the entire email – and I believe I did) except some minor graphics which did not add to or subtract from the discussion.

For each of the first and last sections, I have responded to each of the statements. My comments are in black. I chose not to comment on the myths section for reasons you will find at the beginning of that section. I will say this about the so called myths. I have seen lists of the concerns that should have appeared on this list but did not. Perhaps it is because they are not myths but provable facts.

Before we get to Mr. Axelrod’s viral email, let me talk about the subject in general.

Although it is not presented in this email, I have heard and read comments about how this reform is needed because the free market has failed. The failure comes in the fact that the insurance companies are making record profits and are just plain greedy. Well, they are in business to make a profit. All businesses are. The insurance companies have to answer to state insurance boards and have a lot of restrictions put on them. Some of those, no doubt, come from federal mandates, others are the brainwork of the state lawmakers. In either case, government interference is a major part of the problem.

Without government interference, I would be able to purchase an insurance policy from any company in any state. I would be able to take the same policy to any place where I might choose to move. State laws prevent this. This curtails competition. Curtailed competition reduces options and raises costs.

Regarding the business of excess profits and greed, I have a link for you to take a peek at: http://mjperry.blogspot.com/2009/08/health-insurance-industry-ranks-86-by.html. This link is to a blog called “Carpe Diem” by Dr. Mark J. Perry, a professor of economics and finance at the University of Michigan. Dr. Perry has a table (see above link) of Profit Margins by Industry. It shows “Health Care Plans” ranks #86 by profit margin (profits/revenue) at 3.3%. Measured by profit margin, there are 85 industries more profitable than Health Care Plans (included Cigna, Aetna, WellPoint, HealthSpring, etc.). They would likely be even lower in the rankings if the limitations put out by state governments were removed and full competition were re-established. (Thanks to DownsizeDC.org for the link to Dr. Perry’s blog.)

“Accident and Health Insurance” is # 73 at 3.8%. Still not exactly high on the list. Consider that “Drugs – Generic” is #45 (6.6%), “Medical Instruments and Supplies” is #41 (6.8%), “Medical Laboratories and Research” is #32 (8.2%), “Healthcare Information Services” is #24 (9.3%), “Drug Delivery” is #14 (13.5%), “Drug Manufacturers – Major” is #7 (16.5%), and “REIT – Healthcare Facilities” is #3 (24.6%). So you see, plenty of health related fields are doing much better than the insurance companies.

In case you are wondering, I do not now and never have worked for an insurance company or agent. To the best of my knowledge no relative of mine does or ever has either.

There are a lot additional things I could say about the email and the legislation but I will limit myself here to three things.

1. To quote the late Harry Browne, “Government doesn’t work.” So adding a government program to fix what the government has broken is not a good idea.

2. This country has the most generous people in the world. If the government programs were to be dissolved those who could not afford insurance or the medical care they needed would find willing charities available to help them. This is true compassion. Taking from those who do not volunteer their money is theft.

3. If our servants in Washington think this is such a good plan, let’s make it THEIR health care plan, also. Yes, Mr. Axelrod, that means you, your boss, all the elected officials, and all the other government employees. No exceptions!

Now here is the viral email from the White House.

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Dear Friend,

This is probably one of the longest emails I’ve ever sent, but it could be the most important.

Across the country we are seeing vigorous debate about health insurance reform. Unfortunately, some of the old tactics we know so well are back – even the viral emails that fly unchecked and under the radar, spreading all sorts of lies and distortions.

As President Obama said at the town hall in New Hampshire, “where we do disagree, let’s disagree over things that are real, not these wild misrepresentations that bear no resemblance to anything that’s actually been proposed.”

So let’s start a chain email of our own. At the end of my email, you’ll find a lot of information about health insurance reform, distilled into 8 ways reform provides security and stability to those with or without coverage, 8 common myths about reform and 8 reasons we need health insurance reform now.

Right now, someone you know probably has a question about reform that could be answered by what’s below. So what are you waiting for? Forward this email.

Thanks,

David

David Axelrod

Senior Adviser to the President

P.S. We launched www.WhiteHouse.gov/realitycheck this week to knock down the rumors and lies that are floating around the internet. You can find the information below, and much more, there. For example, we’ve just added a video of Nancy-Ann DeParle from our Health Reform Office tackling a viral email head on. Check it out:

8 ways reform provides security and stability to those with or without coverage

1. Ends Discrimination for Pre-Existing Conditions: Insurance companies will be prohibited from refusing you coverage because of your medical history.

If I have a pre-existing condition that has to be covered by any insurance policy, you are going to pay more for your insurance. The insurance companies are in business to make a profit – just like any other business. When you raise the cost of doing business, as requiring them to not discriminate against pre-existing conditions would do, they will have higher costs. This will lead to higher premiums for everyone else who does not have the condition. Let me choose a policy that will not cover my pre-existing condition or one that will – no doubt at a higher premium.

2. Ends Exorbitant Out-of-Pocket Expenses, Deductibles or Co-Pays: Insurance companies will have to abide by yearly caps on how much they can charge for out-of-pocket expenses.

This should be between me and my insurance company. If they want to sell me a policy with limitations and another company wants to sell me a policy without limitations, I should be able to decide which policy I want. The policy with limitations (caps) would likely cost less than the one without limitations. It would be my choice to pay less and get less or pay more and get more. With NO government interference I would have those choices. With the government mandate of no limitations the cost for the insurance for everybody will go up.

3. Ends Cost-Sharing for Preventive Care: Insurance companies must fully cover, without charge, regular checkups and tests that help you prevent illness, such as mammograms or eye and foot exams for diabetics.

First of all, insurance should not be for preventive care. It should be for catastrophic medical problems. People are responsible for taking care of themselves. When insurance pays for every visit, no matter how trivial the concern, everybody will go to the doctor for things that take care of themselves with common sense and normal precautions. This will (and has been doing so for decades) run up the cost of medical services. When the demand goes up the cost goes up with it. Let the insurance companies offer whatever packages they want and I’ll choose the one that best suits my needs and pocketbook.

4. Ends Dropping of Coverage for Seriously Ill: Insurance companies will be prohibited from dropping or watering down insurance coverage for those who become seriously ill.

The policy should clearly state the limitations. If I don’t like the limitations I can buy a different policy which will cost more but have less limitations. In the meantime, those who are willing to accept the limitations won’t be paying higher premiums to cover the people who want no limitations.

5. Ends Gender Discrimination: Insurance companies will be prohibited from charging you more because of your gender.

If a given group of people are more likely to have higher costs, their premiums should reflect the greater amount of money the insurance company will pay out in their behalf. Those who are likely to have lower costs should benefit from that by not paying higher costs to pay for the group which has higher expenses.

6. Ends Annual or Lifetime Caps on Coverage: Insurance companies will be prevented from placing annual or lifetime caps on the coverage you receive.

This is the same as 1 through 4 above. Let the companies offer different choices regarding caps and let me decide what I am willing to pay for.

7. Extends Coverage for Young Adults: Children would continue to be eligible for family coverage through the age of 26.

Same as 6 (and others mentioned).

8. Guarantees Insurance Renewal: Insurance companies will be required to renew any policy as long as the policyholder pays their premium in full. Insurance companies won’t be allowed to refuse renewal because someone became sick.

The companies could offer guaranteed renewal clause (I believe some do now – although I am not certain). I can pay for that clause or not.

Learn more and get details: http://www.WhiteHouse.gov/health-insurance-consumer-protections/

This reform bill cannot provide all of the above listed benefits without raising the cost for everyone who has taken care of themselves and does not need all of this help from the government. Every one of those ‘features’ will raise the cost of medical insurance.

8 common myths about health insurance reform

I have chosen not to comment on the ‘myths’ listed below because I would have to completely read and study the entire bill to know if they are true or not. Even then, because of the legalese (I am not a lawyer) I might not recognize the statements that would prove the myths to be true if I did read them. I have left them here for you to consider as you wish.

1. Reform will stop “rationing” – not increase it: It’s a myth that reform will mean a “government takeover” of health care or lead to “rationing.” To the contrary, reform will forbid many forms of rationing that are currently being used by insurance companies.

2. We can’t afford reform: It’s the status quo we can’t afford. It’s a myth that reform will bust the budget. To the contrary, the President has identified ways to pay for the vast majority of the up-front costs by cutting waste, fraud, and abuse within existing government health programs; ending big subsidies to insurance companies; and increasing efficiency with such steps as coordinating care and streamlining paperwork. In the long term, reform can help bring down costs that will otherwise lead to a fiscal crisis.

Ok, I have to comment on this one. I agree that we can’t afford the status quo. However, we can’t afford THIS reform. It WILL bust the budget as it will grow as all government programs grow. The way to cut waste, fraud and abuse within existing government health programs is to eliminate the government health programs. As stated above, generous Americans will help charities help those who would be left in the lurch. As for ending subsidies to insurance companies, by all means do so. No company, industry, farmer, or individual should be getting any subsidy from the government. Remove the government regulations and paperwork will be streamlined.

3. Reform would encourage “euthanasia”: It does not. It’s a malicious myth that reform would encourage or even require euthanasia for seniors. For seniors who want to consult with their family and physicians about end-of life decisions, reform will help to cover these voluntary, private consultations for those who want help with these personal and difficult family decisions.

4. Vets’ health care is safe and sound: It’s a myth that health insurance reform will affect veterans’ access to the care they get now. To the contrary, the President’s budget significantly expands coverage under the VA, extending care to 500,000 more veterans who were previously excluded. The VA Healthcare system will continue to be available for all eligible veterans.

5. Reform will benefit small business – not burden it: It’s a myth that health insurance reform will hurt small businesses. To the contrary, reform will ease the burdens on small businesses, provide tax credits to help them pay for employee coverage and help level the playing field with big firms who pay much less to cover their employees on average.

6. Your Medicare is safe, and stronger with reform: It’s myth (sic) that Health Insurance Reform would be financed by cutting Medicare benefits. To the contrary, reform will improve the long-term financial health of Medicare, ensure better coordination, eliminate waste and unnecessary subsidies to insurance companies, and help to close the Medicare “doughnut” hole to make prescription drugs more affordable for seniors.

7. You can keep your own insurance: It’s myth (sic) that reform will force you out of your current insurance plan or force you to change doctors. To the contrary, reform will expand your choices, not eliminate them.

8. No, government will not do anything with your bank account: It is an absurd myth that government will be in charge of your bank accounts. Health insurance reform will simplify administration, making it easier and more convenient for you to pay bills in a method that you choose. Just like paying a phone bill or a utility bill, you can pay by traditional check, or by a direct electronic payment. And forms will be standardized so they will be easier to understand. The choice is up to you – and the same rules of privacy will apply as they do for all other electronic payments that people make.

Learn more and get details:

http://www.WhiteHouse.gov/realitycheck

http://www.WhiteHouse.gov/realitycheck/faq

8 Reasons We Need Health Insurance Reform Now

1. Coverage Denied to Millions: A recent national survey estimated that 12.6 million non-elderly adults – 36 percent of those who tried to purchase health insurance directly from an insurance company in the individual insurance market – were in fact discriminated against because of a pre-existing condition in the previous three years or dropped from coverage when they became seriously ill. Learn more: http://www.healthreform.gov/reports/denied_coverage/index.html

In the section about how reform would supposedly provide security I cover the situation of pre-existing conditions and limits of coverage. The best solution to the problem is to let private charity help these people. A second option is to have an insurance pool for the uninsurable as exists in some (maybe most?) states for uninsurable motorists. Those in the pool would pay higher premiums but they would be getting the benefits. The rest of society would not have to pay for the condition the pool policy holders found themselves in.

2. Less Care for More Costs: With each passing year, Americans are paying more for health care coverage. Employer-sponsored health insurance premiums have nearly doubled since 2000, a rate three times faster than wages. In 2008, the average premium for a family plan purchased through an employer was $12,680, nearly the annual earnings of a full-time minimum wage job. Americans pay more than ever for health insurance, but get less coverage. Learn more: http://www.healthreform.gov/reports/hiddencosts/index.html

It is government involvement in the medical field that has brought up the prices of services. It is the higher prices that have raised the insurance premiums. Whenever government gets involved in any industry, it costs the consumer. For instance, when the government started providing scholarships, grants and loans to students, the cost of education went up. And it went up faster then the cost of living. This is because anytime more money is available for a given industry, the prices in that industry go up. Another example is housing. When government started to guarantee loans and when it started promoting low interest loans, housing costs rose. Look what happened to that industry in the past year! Pass this legislation and you will watch as the costs of heath care rise even faster than ever before. IT WILL HAPPEN!

3. Roadblocks to Care for Women: Women’s reproductive health requires more regular contact with health care providers, including yearly pap smears, mammograms, and obstetric care. Women are also more likely to report fair or poor health than men (9.5% versus 9.0%). While rates of chronic conditions such as diabetes and high blood pressure are similar to men, women are twice as likely to suffer from headaches and are more likely to experience joint, back or neck pain. These chronic conditions often require regular and frequent treatment and follow-up care. Learn more: http://www.healthreform.gov/reports/women/index.html

There are a lot of factors that will make medical care more expensive for one group of people than for another. An insurance company must take these factors into consideration when determining rates for premiums. I pay much more for my insurance than a younger person because of my age. I am healthier than many people 2 to 4 decades younger than me. Still, my age defines my premiums. I would love to see the insurance companies take just the individual and his/her health condition into consideration but the government regulations now in place in most states prevent that from happening. With this legislation, the situation will get worse.

4. Hard Times in the Heartland: Throughout rural America, there are nearly 50 million people who face challenges in accessing health care. The past several decades have consistently shown higher rates of poverty, mortality, uninsurance, (sic) and limited access to a primary health care provider in rural areas. With the recent economic downturn, there is potential for an increase in many of the health disparities and access concerns that are already elevated in rural communities. Learn more: http://www.healthreform.gov/reports/hardtimes

Except for the wealthy land owners, it has always been hard times in the heartland – i.e., rural America. I, personally, would love to live in a very small town or (better yet) out in the country. Instead, I live in city in a county of about 165,000 people. That has made my life better in many ways – even if it is not my choice. If you choose to live in a rural area, you must accept the fact that much of urban living conveniences and even necessities will not be close by. It is not the place of the urban dwellers to provide for those who live in rural areas any more than it would be the place of the farmers and ranchers to provide food for the urban people. If I lived where I’d like to live, I would have to accept these facts.

5. Small Businesses Struggle to Provide Health Coverage: Nearly one-third of the uninsured – 13 million people – are employees of firms with less than 100 workers. From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. Much of this decline stems from small business. The percentage of small businesses offering coverage dropped from 68% to 59%, while large firms held stable at 99%. About a third of such workers in firms with fewer than 50 employees obtain insurance through a spouse. Learn more: http://www.healthreform.gov/reports/helpbottomline

It should never have been the place of the employer to provide health insurance. When you go to work for a company they should pay you a salary or wage for your contribution to the company. It should then by your responsibility to save for your vacations, and retirement as well as purchasing all of your needs (including insurance). I have never had an employer pay for my auto, auto insurance, house payment, house insurance, utilities or food. Why should the employer pay for my health insurance.

This was started by the federal government in world war II. The government froze wages (something done without constitutional authority) so they told the employers they could provide health insurance for their employees in lieu of wage increases. Next it was allowed that the premiums could be deducted for income tax purposes. This was the first intrusion of the government into the health arena. What it did was cause people to go to the doctor for very minor things because they were not paying the bills. This was the beginning of the spiral upward in health costs. Medicare put the spiral on steroids. Imagine what full government involvement will do!

6. The Tragedies are Personal: Half of all personal bankruptcies are at least partly the result of medical expenses. The typical elderly couple may have to save nearly $300,000 to pay for health costs not covered by Medicare alone. Learn more: http://www.healthreform.gov/reports/inaction

As explained above, it is the government involvement that is the cause of such sky high medical costs. Get government out of the health care business and costs will drop.

7. Diminishing Access to Care: From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. An estimated 87 million people – one in every three Americans under the age of 65 – were uninsured at some point in 2007 and 2008. More than 80% of the uninsured are in working families. Learn more: http://www.healthreform.gov/reports/inaction/diminishing/index.html

Lets get away from depending on our employer to provide insurance and start providing it for ourselves. Lets allow people to purchase insurance across state lines to increase the competition and get better policies for better premiums without the need of an employer intermediary. Sometimes by choice and sometimes by conditions beyond their control, people just don’t stay with the same employer as long as they used to. This also makes it less practical for our insurance to be employer based.

8. The Trends are Troubling: Without reform, health care costs will continue to skyrocket unabated, putting unbearable strain on families, businesses, and state and federal government budgets. Perhaps the most visible sign of the need for health care reform is the 46 million Americans currently without health insurance – projections suggest that this number will rise to about 72 million in 2040 in the absence of reform. Learn more: http://www.WhiteHouse.gov/assets/documents/CEA_Health_Care_Report.pdf

Yes, the trends are troubling. The trend has been for more and more government interference in the health care field as the years have rolled by. And along with (and because of) that, the trends in health care costs have skyrocketed. And further government involvement will increase that trend beyond the wildest imagination of the most skeptical health care user. Look out folks!

Yes, we do need health insurance reform now. But the reform should be the government getting out of the way and letting people and companies decide what to do amongst themselves. When one company has no government protection and does not do business in good faith, they will go out of business and be replaced with companies that do give honest service and honest value for the monies paid.

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In closing let me add just a couple of additional points.

The president says that this plan will save money because it will cut costs by cutting fraud and waste. Mr. President, excuse me, but that has virtually never happened before in a government program. Government programs just grow like chia pets only for a lot longer – in fact then never quit growing. Therefore they never get smaller and they are never efficient. Seldom do they actually accomplish their stated purpose. There is no money for this program. The government has no money unless it takes it from the citizens in the form of taxes or expenses that are taxes but not to be called taxes.

The final point to make is that the United States of America has a rule book. It is called the US Constitution. The rules are plain and simple and no exceptions are allowed without changing the rules via a constitutional amendment. There is no rule in the Constitution which allows for the federal government to pass legislation dealing with health care. Doing so is unacceptable.

Tags: Axelrod, Constitution, David Axelrod, Health Insurance, Health Insurance Profits, Health Reform, Viral Email, White House

This entry was posted on Saturday, August 15th, 2009 at 10:16 pm and is filed under Health, Politics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.