I heard the spokesperson for the insurance industry on NPR yesterday

[Phoebe Loosinhouse]

On All Things Considered.

Very brief. Her major point was that insurance company don't set costs, they just pass through costs. (I would of course counter that they contribute to raising costs since they add no value,make MORE money if they deny what they are supposed to provide, and have bloated admin and excessive excutive compensation, but that is neither here nor there.)

but one set of points she made stood out.

http://www.npr.org/templates/story/story.php?storyId=121834368
Insurance Executive: Overhaul May Bring Disruptions
Karen Ignagni, president and CEO of American's Health Insurance Plans, talks with Robert Siegel about her industry's concerns regarding the Senate health care bill. She says without cost controls, health care will be less affordable for millions of Americans and small businesses. She also says new regulations may cause disruptions for current policyholders.


SIEGEL: But will they pay more for that piece of mind?

Ms. IGNAGNI: Well, the answer to that question depends on whether the mandate works. Will we have everybody covered? Will the younger and healthier people decide not to participate? Second, the so-called rating rules: In 85 percent of the country, they don't have the kinds of - anything near the kinds of restrictions that will be imposed in this bill which means that we will have to significantly - to meet these requirements, significantly increase the cost of services for people under 35.

SIEGEL: Just to give our listeners an idea here, I want you to give us a couple of - just name a couple of states where because of what state insurance regulations already exists where premiums are likely to go down and a couple of states where, given what regulations do or don't exist, premiums are much more likely to go up.

Ms. IGNAGNI: Massachusets is a very good example of premiums in the individual market going down. In New York, we will see premiums go down. California, Texas, Florida, Ohio a range of states around the country who are not in the category of guarantee-issue states or having rating bands will see costs go up. Just so people can understand, our rating band is a ratio between what you can charge the person who has the lowest cost, relative to the person who has the highest cost. The whole objective is to assure people that all of these changes will work and that the cost will be as they expect, which is affordable.

This of course goes back to the point that Obama and the Democrats have created a political time bomb for themselves when millions of people discover that "reform" did not make insurance more "affordable", that it made it more expensive.

[vi5]

1. Who cares?

It's reform! He's signing it! It's historic! Bathe in the warm glow of it's reformy history!!!

[Dinger]

2. Yup

[LovinLife]

3. U could've waited till after christmas to ruin hopes and dreams. Maybe after New Years. NT

[Vinca]

4. Basically, they will screw the people in the unregulated states

twice as badly to make up the difference. This is a reason to have strong FEDERAL regulation over health care.

[Phoebe Loosinhouse]

5. This is where we all quickly try to check to see if we are in a regulated or unregulated state

I posted the other day and asked why people weren't mad at their state insurance regulators falling down on the job for years. Maybe the shit will start to hit the fan in that regard and some of the unregulated states will get their act together.

That is also why some people were arguing against the idea of allowing healthcare plans to be offered nationally, they were saying that the plan would register in the least regulated state (like credit cards do) and find a way to screw over the states with better regulations. I guess the thought is that they would all do that as an end run around real competition. Perhaps this is where the anti-trust exemption repeal would be handy.

Simple fact - if you are going to mandate private insurance , then you are going to have to regulate the living hell out of them and restrict their profits. The 80-85% Medical Loss Ratio just ain't gonna cut it.

[Armstead]

6. No,No No -- You don't "get it." We are all Centrists now

That means we hate regulation as much as Republicans do.

Market Forces have won a great victory today.

[Phoebe Loosinhouse]

8. We are "unique Americans" who would rather pay more dollars for less coverage

to private for profit entities than to pay those same dollars or less for a cheaper, more effective single payer system. We are unique in our ignorance and our lack of concern about both our personal and collective wallets.

I suggest we call the new reform the "Uni-Q American Plan"

[Armstead]

9. It's Our God Given Right to pay too much and get less

[denem]

7. I truly believe any and every spokesperson of the insurance industry

They never lie.

They never look for any opportunity to raise premiums.

They care.

[Phoebe Loosinhouse]

10. Then there's this interesting dig

"And then there has been a conscious effort not to necessarily take that same principal and carry it forth to the other stakeholders."

This is her referring to how insurance will be regulated but yet Pharma will not.

I actually think the insurance industry is trying to contain their glee at how little they were regulated in the end. Isn't she acknowleging that with the excerpt I posted in the OP? She says costs will rise in the unregulated states. Pretty open about that if you ask me.

[Armstead]

11. We have short memories -- remember that Insurance Industry Gaffe thus autumn?

People here seem to be forgetting the one moment of unintended honesty from the Insurance Lobby when they "warned" that with this bill health care prices will rise, because the penalties connected to mandates were not "strict enough."

Their heavy handed move outraged people and these smart democratic "strategists" were certain that naked form of attenpted blackmail would backfifre on the insurance industry.

Guess it didn't. They are now free to continue to gouge with the blessing of the government.

[mkultra]

12. that meme is RW bullshit

Every industry replies to profit challenges by threatening consumers with rate hikes. End the end, supply and demand control rates and sometimes profits must take a hit to compete. Its like the wire line phone companies who have been using that excuse for some time. They are now being forced to consider price cuts because they are getting the shit kicked out of them by digital and wireless. Those price cuts are coming straight out of their ars.

[Phoebe Loosinhouse]

13. I don't think supply and demand worked with insurance

The demand of the millions with prior conditions did NOT result in anyone supplying an affordable product for them due to their demand.

I don't think healthcare can be looked at in the same light as widgets. This is our great myopia, that we cannot see this, while most other countries do.

[Armstead]

14. Your meme is corporatde conservative bullshit -- and pretty damn Reaganesque

Reaganism is based on the notion of total trust in the in the "unrestrained free market" and pure "supply and demand" instead of any regulation or government program.

Your "meme" sounds a lot like Reagan Conservatsm

[mkultra]

15. im challenging the corporate bullshit idea

that this bill will "force" them to raise our rates. Because you believe in the meme, your a sellout. supply and demand control PRICES. dont stretch.