I smell a rat

So an industry flak organization, America’s Health Insurance Plans, releases a report two days before the Baucus bill is expected to pass the Finance Committee. The report says if the bill is enacted, insurers will be forced to dramatically increase premiums so that annual family health insurance costs will equal more than half of the current median household income within 10 years:

The report said selected provisions of a bill from the Senate Finance Committee could increase premiums 18 percent more than they would otherwise rise in the next decade, to an average of nearly $26,000 for families and $9,700 for individuals in 2019.

If the committee approves the bill on Tuesday, as Democrats expect, Senate leaders plan to combine it with another Senate bill and take the package to the Senate floor, for a debate that could begin this month.

Democratic leaders and reform supporters were quick to denounce the industry-funded report, calling it “distorted and flawed” and “fundamentally dishonest.” On the MSNBC yappy heads programs yesterday, some, including the estimable Rep. Anthony Wiener, cited the report’s conclusions as further evidence that there needs to be a strong public option to keep the private insurers honest.

Others (Ed Schultz, for example, and a senate finance aide) went so far as to insinuate that issuing the report now was a huge tactical blunder on the part of the insurance industry—that by showing their hand so brazenly, the industry has given the Dems the opportunity to frame the terms of the coming congressional debate:

“Instead of creating doubts, the report is actually having the opposite effect and has drawn a lot of ire from those who support reforms,” the aide said. “Frankly, it will create a lot of momentum in the Senate to pass reform.”

Don’t be so sure. The insurance industry is greedy, heartless and rapacious. But it’s not stupid. I think they have a two-level strategy here: First, to re-arm the GOP naysayers with fresh ammo they can use to scare the shit out of people who already have insurance. In 10 years, half your income will go towards supporting lazy, shiftless bottom-feeders!

The second level of the strategy is to rally the Dems around Baucus’ crappy plan as it stands now.. It’s a briar-patch strategy that could pay off—if the Baucus plan passes substantially intact instead of being used as a framework on which to add meaningful cost-control measures like a strong public option, the insurance industry gets millions of new customers, permission to keep screwing those of us who have insurance with skyrocketing premiums and escapes the modicum of accountability a public option would create.

Don’t fall for it, Dems.

[Cross-posted at Betty Cracker]

Posted by Betty Cracker on 10/13/09 at 06:42 AM • Permalink

From your lips to god’s ears, Tom. My fear is that they’ll play the Dems in both legislative chambers like a violin, attacking a bill that an insurance industry executive wrote in order to paint the Baucus bill as The Brave Little Reform Bill that Could and compel us to embrace a shitty compromise.

I hope I’m dead wrong and that the House Dems use this fraudulent report to point out that the insurance companies add nothing of value to the process, etc. But their track record doesn’t inspire confidence. It wouldn’t be the first time we’ve been rolled.

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