[NYTr] Insurance Co Lobbying Distorts California Healthcare Reform

[All the News That Doesn't Fit]

sent by Steven L. Robinson (activ-l)

[A bipartisan consensus at work in California, thanks to insurance
company dollars. SR]


PR Newswire via Earth Times - Sep 10, 2007
http://www.earthtimes.org/articles/show/news_press_release,174874.shtml

Health Insurance Industry Contributions to Politicians Block
Regulation, Affordability in Health Care Debate, Says FTCR

PRNewswire-USNewswire
September 10, 2007

Santa Monica, Calif., -- As the Democratic health care bill goes to a
vote today, the Foundation for Taxpayer and Consumer Rights (FTCR)
released a new analysis of health insurance industry contributions to
Sacramento politicians which helps explain why they would require
Californians to pay for private health insurance but refuse to regulate
what insurers can charge for the policies. Health insurers and their
lobbying associations gave a total $4,094,132 to Governor
Schwarzenegger, members of the California legislature, and political
parties between January 2001 and June 2007.

Assembly Speaker Fabian Nunez and Governor Arnold Schwarzenegger, the
architects of a potential health care deal in Sacramento, have led the
pack in contributions from the industry. Schwarzenegger has received
$719,600, and Nunez has taken $136,300, more than any other legislator.

"No one can say, or will admit, how much health care will cost or who
will pay.  With $4 million from health insurers and 6 dozen fundraisers
in the last three weeks, no one in the capital wants to offend the
health insurers," said Jerry Flanagan with FTCR.

AB 8, by Assembly Speaker Nunez, benefits insurers at the expense of
Californians by requiring workers and taxpayers to pay for coverage but
does not cap what insurers are allowed to charge.  Under AB 8:

-- If the cost of coverage exceeds 5% of income, the worker is not
required to buy coverage but will be uninsured or under-insured (forced
to buy a high-deducible, low-benefit policy).  Those that currently
receive coverage from their employer may not be able to afford that
coverage in the future.

-- If a worker earns below 300% of the federal poverty level, the
worker's share of coverage is capped at 5% and the remaining cost will
be paid by taxpayers with no regulation of how much insurers can charge.

The analysis includes contributions made by the top six health insurer
and HMO donors -- Blue Cross, Blue Shield, PacifiCare, Molina, Health
Net, Aetna - - as well as the Association of California Life and Health
Insurers and the Association of California Health Plans:

Assembly:  $1,258,873 Senate:  $1,058,912 Dem/Rep Party:  $1,056,747
Schwarzenegger: $719,600 TOTAL: $4,094,132

"Lawmakers are focused on the interests of the health insurance
industry to the exclusion of consumers and workers, who will be
required to purchase a private health insurance policy regardless of
what it costs or covers under the emerging deal," said FTCR's Carmen
Balber. Legislation that would have required health insurers to defend
their overhead and profit while getting approval for premium increases
to regulate the insurance industry was defeated in the legislature in
July. The legislation would have applied to health insurers the same
requirements that apply to the auto insurance market and have saved
drivers $23 billion since 1988.

The five California companies (Kaiser, Blue Shield, Blue Cross,
PacifiCare, and HealthNet), that control 80% of the HMO market, have
recorded profit increases of $11.7 billion since 2002. Four of the
companies transferred $4.1 billion in profit to out-of-state parent
companies since 2002. The six largest HMOs spent $1.6 billion on
marketing in 2006.

Foundation for Taxpayer and Consumer Rights