Update on Health Insurance Company Profits

This information was obtained from Yahoo’s financial reports site (http://finance.yahoo.com).  This is Operating Income.  You could argue that their income per share is low.  I would argue that the job they fulfill in our society requires that their profits remain even lower given their purpose.    

Quarter ending   6-30-09: Aetna $2.475 billion
  Coventry Health Care $619 million
  CIGNA $378 million
  Humana $1.073 billion
  UnitedHealth $859 million
  WellPoint (Blue Cross/Blue Shield) $3.592 billion

A Real Need for Health Care in America

There really is a need for no cost or low cost medical care in the United States.  Remote Area Medical (RAM), an organization that provides health care in third world countries came to Los Angeles, California.  Stan Brock, the founder of this organization was named “person of the week” on ABC World News.

About 1,500 (revised to 6,000) people were provided with dental, optical and other care.  Hundreds are being turned away.  One man interviewed on local television drove 80 miles for dental care.  He is employed and does have medical coverage from his employer.  He has no dental coverage and the cost of a root canal and bridge of $5,000 was more than he could afford.  The local newspaper had an item asking for more volunteer doctors.

NPR and the Los Angeles Times both had articles on the event.  It’s obvious America does have a health care problem.

Obama Wants to Limit Health Care

Seniors and the poor are the president’s targets.  In his July 22, 2009 press conference the transcript reads, “And it’s about the fact that the biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid.”  Today CNN quotes the President saying, “…must get control of Medicaid/Medicare spending.”  The problem is Mr. Obama never talks about the ways to control costs.  Will there be limits on the payments to doctors and hospitals, limits on payments for drugs, or limits on payments to insurance companies?  Ignoring the discussion on cost control, I believe, is intentional.

Once again it’s the rich and powerful versus the rest of us.  Insurance companies, large medical care businesses, and pharmaceutical companies are permitted to charge what ever they want.  There are no incentives to lower the costs.  The middle class senior relies on Medicare for health insurance.  The poor and disabled rely on Medicaid.  If it’s the middle class and poor versus the rich and powerful it doesn’t take a terribly smart person to realize who will win that confrontation.

In California the poorest among us have been impacted most by the budget cuts.  Medicaid and in home health care services were cut in the face of a rising budget deficit.  The influential and high ranking members of government were not significantly impacted. 

“If only the elderly would die without making a fuss the Medicare system will be able to handle its costs.  Why must you old people be so uncooperative?”  They won’t say the words exactly like that but everything points to those thoughts.  Of course the president denies this idea.  Unless he proposes other cost savings ideas this can be the only conclusion that can be reached.  This is disgusting.

We Need Health Care Reform

There is no health care crisis in the United States.  85% of all Americans have health care insurance.  No one is turned away from a hospital.  Most areas offer no cost medical care to low income families.  Even Kern County California, a small town and farming area, provides similar services.

President Obama is in the wrong fight.  His focus should be solely on lowering the cost of health care.  That is an issue facing everyone in America.  Health care for every American is a wonderful idea but the time has not come to make this a reality.  Lower costs will probably help to add more families to the insured rolls. 

President George W. Bush tried to revise Social Security and he failed.  The reason that these changes fail is that the public basically likes and is comfortable with the existing systems.  There is no obvious reason to change either of these programs.  It’s the American idea, “if it ain’t broke, don’t fix it (spoken) also if it’s not broke, don’t fix it.”

I skim read H.R. 3200 ‘‘America’s Affordable Health Choices Act of 2009.’’  This is not a law.  It is a proposed law or bill.  Why didn’t I read every single word?  There was too much legal jargon that only a lawyer could understand and he would have to be familiar with U.S. Code (USC).  That is the codification of the general and permanent laws of the United States.  This proposed law is 1,017 pages long.  References to advance care planning and advance directives in the bill only aid those opposing a new health plan.  Most people already know about medical power of attorney and advanced health directives.  Including help in preparing those documents in the proposed law only supports the fear that the government will try to reduce health care costs by encouraging the elderly to sign documents that will deny them medical care.

Medicare recipients are rightfully concerned about the loss of Medicare benefits.  There is too much language in this bill about changes to existing Medicare plans.  This is an alert to seniors and the AARP that savings in a new national health plan will come at a cost to seniors.  After all it is senior citizens that do receive the most health care services.  The AARP has not endorsed this plan or any plan.

 The Administration is correct in identifying serious flaws in our health care system.  Those flaws should be addressed.  Throwing out the entire system because there are a few problems is the wrong approach.  After all, most parts of health care do operate fairly well.  Cost of medical care is the number one issue according to the president.  That is the challenge that should be addressed.  I am sure there are other issues but here is my list.   Mr. President just address these issues:

  1. All medical facilities must implement on line medical records.  The benefit is the sharing of information between doctors and easy access by the doctor of a patient’s history.  Kaiser Permanente Southern California has that program in place.  The two doctor office caring for my mother still uses had written records as does my dentist.
  2. Insurance companies must be prohibited from denying health care coverage based on a patient’s medical history.  There should be no criteria for premiums.  Everyone should be pay the same rate based upon geographic area.
  3. Eliminate lifetime caps on the amount of coverage set by insurance companies.
  4. Regulations must deny insurance companies the right to cancel insurance.
  5. Insurance companies must be allowed to sell their plans in any state thus increasing competition.
  6. Generics drug manufacturers should have the right to produce copies of brand name drugs after five years rather than the current rule of no limits on Biotech drugs and standard limits on other drugs of 17 years.
  7. Develop improved Medicaid programs for those not covered by existing plans due to their cost.  The plans must be limited to those currently eligible for Medicaid.
  8. Impose excess profits tax on all health care providers (i.e. insurance companies, pharmaceutical companies, hospital associations, health care provider associations, etc.).
  9. Tax breaks for individuals similar to businesses who have no employer provided insurance.
  10. Portability and of coverage and reduced costs of coverage for those who have lost their employment.
  11. Tort reform that will reduce the cost of a doctor’s business insurance.

Just these improvements will lower the cost of medical care for everyone.  These are enhancements that both Democrats and Republicans will be willing to support.

Bill O’Reilly on Barack Obama

Bill O’Reilly and Fox News Channel just won a gold star, maybe two or three.  O’Reilly’s column in Parade magazine is an outstanding compliment to the President.  While conservatives may fume about the article, it does show that at least some people (both conservatives and liberals) can rise above their party preferences and recognize an outstanding individual.

 

As a moderate I am continuously amazed at the outrageous comments and accusations that partisans make every day.  Perhaps we can all come together if we try to find something positive to say about our rivals.  

My 30 year friend who displayed himself as a bigot is a decent fellow in some respects and now in his senior years is most likely a good grandfather.  I have not spoken to him in ten years and Mr. O’Reilly’s column won’t change my opinion. Wow! I wanted to get that off my chest for years.

Alone and Feeling Lonley

Who in this world has not experienced the feelings of Loneliness?  There are those lone business trips on an airplane and the stay in a hotel where you know no one.  Single people go to parties and have parties at their own homes but at the end of the day they are alone.  Your spouse passes away after a 40 or 50 year marriage and you are feeling all alone.  Those are the three most obvious reasons that you are alone and feeling lonely.  I personally have known the feelings of loneliness and it can drive a person to madness.

Most of us take some kind of action to resolve the problem.  Some of us resolve the issue by taking the wrong action.  Thus, a gunman at Pa. at a health club who was bitter over women killed three and wounded nine.

I would like to condemn the availability of hand guns for this horrible event.  What if all hand guns were banned?  No one but police could have a hand gun.  The NRA and its supporters would not agree to such a law.  Their argument would be that criminals would still have those guns and the rest of us would be at their mercy.  However, if the guns are banned for everyone there would be no sales anywhere in the country. Wouldn’t that end hand guns?  Perhaps.  To me it seems that using a gun to solve a problem is an answer that too many people use.

The killer in Pennsylvania would have found another way to get even with those he hated.  Loneliness is the real killer.

The United States Cannot Protect Stupid Citizens

President Bill Clinton is to be congratulated for his negotiating skills. Everyone was happy to learn about the negotiated release of Laura Ling and Euna Lee, who were arrested March 17 near the China-North Korea border and had been sentenced to 12 years of hard labor in a North Korean prison.

Laura Ling speaks along with Euna Lee, the Los Angeles journalists for Current TV who have been held in North Korea since March 17th land on US soil at Bob Hope Airport in Burbank CA 4:00 AM PST. They were pardon yesterday during a visit by former president Bill Clinton. Burbank CA/USA. Aug 5,2009. Photos by Gene Blevins/LA Daily News
Laura Ling speaks along with Euna Lee, the Los Angeles journalists for Current TV who have been held in North Korea since March 17th land on US soil at Bob Hope Airport in Burbank CA 4:00 AM PST. They were pardon yesterday during a visit by former president Bill Clinton. Burbank CA/USA. Aug 5,2009. Photos by Gene Blevins/LA Daily News

The capture and imprisonment of Americans or American friends continues to be a nagging problem.  Just yesterday we learned of three Americans arrested who had illegally entered Iran from neighboring Iraq.  Newsweek journalist, Maziar Bahari, was taken into custody on June 21 in Iran.  American journalist Roxana Saberi, her father is Iranian, was arrested in Iran in January 2009 and released on May 11, 2009.

All of these people had one thing in common.  They were ctiizens or friends of the United States.  Americans seem to believe that they can go anywhere they choose and the U.S. government will come to the rescue.  This is a very foolish expectation.

I Love Sports More than Money – Honest!

The use of performance enhancing drugs by athletes is not news.  The Associated Press thinks otherwise.  I know this because they keep providing stories revealing the latest users.  They are not telling us something most people don’t already know.  The really sad fact is that large numbers of people are still attending sports events.  They support and even honor people who are known drug users.  In Los Angeles, Manny Ramirez is idolized as like a rock star despite the repeated revelations about his drug use.    

Public support for athletics knows no bounds.  Next to the main front section of every newspaper the sports section is the largest part.  In school system, both public and private, literature and art might be eliminated due to budget issues but never sports. 

The privately owned sports teams are in this business for the money.  It’s the money the teams earn and the players on those teams.  Thinking they are playing for the glory and exultation is naive.

OK, you will say sports are healthy.  Are they healthy if the players are taking drugs?

Here is a list of Last year’s Earnings of sports successes as listed by Forbes magazine.  I hope not all of them are on drugs.

 

 

1. Tiger Woods            $100 million
2. Kobe Bryant $45 million
2. Michael Jordan $45 million
2. Kimi Raikkonen $45 million
5. David Beckham $42 million
6. LeBron James $40 million
6. Phil Mickelson $40 million
6. Manny Pacquiao $40 million
9. Valentino Rossi $35 million
10. Dale Earnhardt Jr. $34 million
11. Roger Federer $33 million
11. Shaquille O’Nea $33 million
13. Oscar de la Hoya $32 million
13. Alex Rodriguez $32 million
13. Lewis Hamilton $32 million
16. Vijay Singh $31 million
17. Kevin Garnett $30 million
17. Jeff Gordon $30 million
17. Derek Jeter $30 million
17. Ronaldinho $30 million

Swine Flu Panic

Mexico calmly addressed the issue of a spreading disease with actions that would have had American businesses and the Republicans in a state of fury.  Mexico had essentially shut down their most major city to contain the disease.  Can you imagine telling everyone in New York, Los Angeles, or Chicago to stay home?  There are over 22 million people living in the Mexico City metropolitan area making it is one of the largest cities in the world.  Depending on the area included that would be even larger than metropolitan New York.

 

This past week we all read that trials on Swine Flu vaccines would be starting very shortly throughout the United States.  Strangely we then read that there is the possibility that 40% of the American population could become ill from this disease.  Today European nations are on a fast track to start the use of the new vaccine as early as next month despite possible side effects.

 

The CDC (Center for Disease Control) reported that of 21,449 cases that the number of deaths has nearly doubled to 87.  That is a small number when you consider that thousands of people die each year from flu.  CDC reports that annual flu deaths (excluding Swine Flu) average 36,000 have been challenged but clearly annual deaths from various flu strains is in the thousands.

 

So why the panic?  It is not clear to me that the accelerated and possibly dangerous vaccination process is the right thing to do.

We Need A Real Health Plan

Kathleen Sebelius, secretary of Health and Human Services, was not prepared for her appearance on Meet the Press yesterday.  David Gregory ate her alive.  David used the interview techniques that proved so valuable to his predecessor, Tim Russert.  He simply used her own words in questioning the administration’s plan for health care.

 

President Obama’s objectives were repeated by Mrs. Sebelius in an NPR interview.  She did not disavow those goals. 

 

  1. lower costs
  2. cover all Americans
  3. drive quality
  4. and be paid for (without impacting the federal budget)

She was unable to explain where there are any consequential savings in the Obama health plan.  Then she went on to admit that coverage for all Americans isn’t a priority but it is one “of the goals.”  As to quality of care she admits there will be limits but argued, fairly well, that limits exist now in currently available insurance plans.  Finally Mrs. Sebelius told viewers that the president has not taken a position on taxing the wealthy to pay for the federally sponsored plan.  He has not offered any ideas on how to pay for his plan.

 

All in all, the secretary’s appearance gave me no assurance that any part of this plan has been well researched.  I agree with those that say health care should be available to everyone just like police and fire department services.  The problem is that 85% of the population has health insurance through their employers.  The second problem is the current cost is too high.

 

If all of the above goals are equally important congress will have to devise an alternate plan.  Mrs. Sebelius confirmed that the cost of health care has reached 16% of GDP.  That should be enough of a motivator to make this happen.