Health Care

Rationing Health Care to Keep Wall Street Happy

Published June 27, 2009 @ 08:24PM PT

Having spent the past four days in Washington, I’ve been “treated” to a stream of commercials from the unfortunately named “PUN (Patients United Now).”  The one that they’re betting the bank on, and which echoes talking points from Frank Luntz and the deliciously odious Rick Scott, shows a Canadian woman who apparently had a serious bout of cancer.  Her treatment was delayed, and she nearly died.  Presumably she went elsewhere to get care, but the story in the commercial is pretty vague.  What is clear is the warning that President Obama may soon be ushering in Canadian-style health care to the U.S. I suppose this means all cancer patients will instantly have their scheduled chemotherapy and radiation appointments delayed for months.  (Freakin’ Canada!)

It’s a scary – if vague – story.  But if you want terrifying stories of denied care, Canada ain’t got nothing on us.  Here in the land of the free, health care rationing is alive and well and being used to keep shareholders happy.

Let me just quickly say, I can think of a handful of single-payer advocates who had to get arrested because the decision-makers in the Senate were determined to avoid discussing Canadian-style health care like the plague.  If that’s the president ushering in Canadian-style health care, he’s got a funny way of showing it.

But to get to the root of the matter, if you want scary stories of care being unjustly denied here at home – pull up a chair.

We have Robin Beaton, the former nurse from Texas, who had her cancer treatments delayed for months by her insurance company’s rescission policies based on an error in her records, during which time her tumor grew catastrophically.

Eleanor Hinton Hoytt has a similar story:

“Never again should there be another Esmin Elizabeth Green, a forty nine year-old child care worker die alone, ignored, stepped over in the floor of an emergency room after waiting 24 hours for care that never came.  We should not have that happen in this country.  That poor, black, immigrant woman without insurance, forty nine years old, mother of four, Gospel singer, sat there… and sat there in the Emergency Room.  And then she fell.  And then she was lying there.  And they still ignored her.

“It’s not just.”

On Wednesday, Wendell Potter, a former executive at Cigna, took the scary stories of denied and delayed care a step further.  His testimony before the Senate Commerce Committee laid out plainly the insurance industries’ strategies for solving the “medical-loss ratio” – the process of decreasing how much you pay out in claims compared to how much you take in for premiums.  This allows the industry pay for its high administrative costs and, of course, profit and return on investment for what Potter called, “a Wall Street-run system that has proven itself an untrustworthy partner to its customers, to the doctors and hospitals who deliver care, and to the state and federal governments that attempt to regulate it.”

But let’s pause for a second.  First, as Ezra Klein says, “The industry literally has a term for how much money it ‘loses’ paying for health care.”

Second, Potter detailed how the industry reduces its “losses” through rescission and jacking up rates for the sick.  The first involves “look[ing] carefully to see if a sick policyholder may have omitted a minor illness, a pre-existing condition, when applying for coverage, and then they use that as justification to cancel the policy, even if the enrollee has never missed a premium payment.”  The second involves hitting policies for people and businesses likely to need a lot of health care with “intentionally unrealistic rate increases.”  Apparently pushing sick people out of coverage is good for business and fabulous for your stock price.  Actually treating too many people can cause your stock to drop so fast that it can cause a company-wide panic.

That means there are thousands of Robin Beatons out there by corporate fiat.  And if they can’t find affordable insurance from Cigna and other Wall Street-driven insurers, they might go on to be an Esmin Elizabeth Green.

So here’s the question, PUN and all would-be PUNs out there.  We understand you’re against a government-run system that looks nothing like what’s being proposed in Congress where either through medical error, bureaucratic inefficiency or inherent inferiority of government management causes a cancer diagnosis to be missed or an unspecified treatment to be delayed.

But how can you be for a Wall Street-run system where the cancer diagnosis and serious ailments that we find are reason enough to cancel someone’s health care in their hour of need?  If you’re against rationing because of bureaucracy, how can you be for rationing for the sake of a one-day bump on the stock market?

(Photo credit:  TGIGreeny on Flickr.)

Share this Post

Related Posts

Comments (20)

  1. Lauren Serven

    here is another question: if access to health care is a human right, how do you justify treating it as a market commodity.

     

     

    Posted by Lauren Serven on 06/27/2009 @ 09:19PM PT

  2. Reply to thread
  3. Bohdan  Oryshkevich

    The reality is that the care of Esmin Elizabeth Green as highlighted by Tim Foley (http://healthcare.change.org/blog/view/rationing_health_care_to_keep_wall_street_happy) was public care.  Kings County Hospital is a city institution perhaps affiliated or not with a state medical school, SUNY Downstate.

    Even before the case of Ms. Green, there was a suit against Kings County Hospital for its negligent care.    

    Kings County Hospital has been fundamentally dysfunctional for over a hundred years.  It is a site of institutionalized government corruption and incompetence.  It may well be the worst medical institution in the western world.  Only possible in America.  It is a carry over of segregation in the North, county hospital charity care for the poor.  

    It is not even clear that Kings County Hospital and SUNY Downstate are affiliated so byzantine are the government relationships.

    I know all this because I have followed this institution for forty five years since high school.

    This hospital alone is reason enough for us to reform our health care system.  I began writing to Mr. Obama about this hospital as soon as he became a candidate for President.

    It is GOVERNMENT health care at its worst.  People who fear a public plan or a single payer are fearful of being forced to go to such institutions.  Those fears are justified and real.  The whole notion of a public hospital in the USA is tied to incompetence, urban corruption, cronyism, segregation, etc. 

    The hope is that once care would become universal with the same identity, another hospital on other principles could be built to replace it.  Kings County Hospital unfortunately has been too big to fail.  At one time it saw something like three percent of the ER cases in the USA. 

    Universal insurance on the Canadian or any other model would provide a passport to the unfortunates of Brooklyn to go to any other hospital in the city for better care.  When I worked there as a physician I would carry subway tokens to give to patients to go to other hospitals. I knew they could not get care there.

    But, unfortunately, single payer advocates with their incessant chants are oblivious to the realities of American medicine and the genuine fears within the American psyche.

    On the other hand, President Obama is not moving beyond segregation.  He is going to maintain Medicaid, the IHS, Medicare, the VA, private insurance, and perhaps a public health plan.  He has not gone beyond the separate but allegedly equal form of segregated American health care.  In reality, President Obama and American society at this time are not capable of going become segregationism when it comes to health care. 

    That is how far we have to go when it comes to reform.

    If anyone doubts my knowledge of Kings County Hospital, I will send you the medical records (if you can call them that) of Esmin Elizabeth Green from her fatal ER visit.

    Bohdan A. Oryshkevich, MD, MPH    

    Posted by Bohdan Oryshkevich on 06/28/2009 @ 08:54AM PT

  4. Carla Rautenberg

    Dr. O,

    Could you please explain to me why every other industrialized country in the world can cover everyone, with better results than we achieve, at roughly half the cost?

    Is just because we Americans are evil, or stupid? If it is pure racism, then why do many of Caucasian descent also suffer?

    As a self-employed person, the cost of my health insurance policy is crushing. My late husband died due to his insurance company's denial of care. My 38-year-old daughter is uninsured, along with 50 million other Americans.

    I really hope you can answer my question.

    Posted by Carla Rautenberg on 06/28/2009 @ 11:14AM PT

    • Report close

      You must be signed in to report content.

    • 1 person likes this comment.   Like
  5. Bohdan  Oryshkevich

    We are more like South Africa than we would like to admit.

    We also fought the Cold War and developed a streak against socialism.

    We fear government irrationally.

    We are a huge country with many traditional fundamentalists who are genuinely conservative and are isolated from the rest of the world.

    We believe in unbridled business.  The Dutch have created a private insurance health care system the Republicans would do good to emulate:

    http://www.minvws.nl/en/themes/health-insurance-system/the-new-health-care-system-in-the-Netherlands-video/

    We are not willing to make tough choices.  We are like adolescents.  We are not disciplined.

    We have private universities.  So we try to preserve an elite class with high benefits.  Our private universities do not want public plans. 

    We have an immature left that cannot and does not know how to promote a "single payer" plan.  It was the Conservatives in Canada that brought about the single payer not the Liberals.  The single payer is a very conservative plan.  It works much better than what we have.  But it also has bipartisan support.  The left does not understand that.  You have to look at the people who founded PNHP to understand that. 

    We have few people educated abroad who are willing to explain to us or stand up for what other countries have done.

    I could go on.

    Bohdan A. Oryshkevich, MD, MPH

     

    Posted by Bohdan Oryshkevich on 06/28/2009 @ 12:10PM PT

    • Report close

      You must be signed in to report content.

    • 2 people like this comment.   Like
  6. Bohdan  Oryshkevich

    One of the results of segregationalism is that we do not have social solidarity.  That is there are people on the wrong side of the tracks, there are winners and losers, etc.  Social solidarity or its absence has been mentioned as one of the factors why we do not have universal insurance.  We like to reward our winners, execs, bankers, athletes, etc.

    We simply do not want to put people under one roof.  That could not take place with the constitution in 1789 and it cannot take place now or is very difficult to do now.

    Obama has been absorbed by the system.  He is post racial.  But the over all separatisms still exist in America.

    Bohdan A. Oryshkevich, MD, MPH

    Posted by Bohdan Oryshkevich on 06/28/2009 @ 01:33PM PT

    • Report close

      You must be signed in to report content.

    • 1 person likes this comment.   Like
  7. Carla Rautenberg

    I think you are right about a great deal of this. Ahem, I mean I think you are correct.

    And yet, and yet, I meet many people of good will who sincerely want to create a more egalitarian society...

    And by and large, the elderly LOVE Medicare. It is a good program. Why do our elders not lead us? (That's a rhetorical question.)

    Anyway, thank you, Dr. O., for giving me lots of ideas that I can and will share with others. 

     

    Posted by Carla Rautenberg on 06/28/2009 @ 01:55PM PT

  8. Harold Lewis

    Dr.

    I don't know that it's an issue of an immature left or and irrational right. Our definitions and their leanings are very much American and mostly defined by 1980 campaign rhetoric.

    We've grown not to believe in "unbridled" business so much as rule by business. Even the market capitalism given lip service has had little to do with policy. Instead of promoting market development and competition, policy is used as a means to funnel taxes and earnings directly to corporations. The alienation we perceive from our government is real. Business has sold us the lie that this is the nature of government. The truth is that we have alienated ourselves and given it over. 

    Health insurance, providers, and the pharmaceutical industry have taken advantage of this situation. Well-meaing conservatives citizens cannot ask their representatives to reach out with a single-payer solution because it violates the alienation they preach and embrace. Liberals cannot reach out to their representatives for fear of being called liberals or socialists. Our representatives, on both sides are responding to their rulers in business.

    You have pointed to some very real problems in the industry. It isn't only cost. It's about how we treat each other as citizens and human beings. Most of all, it's about taking this nation back.

    We can't fix everything about our healthcare right away. But, we have seen false wealth evaporate. We hear a cry for jobs which can only be supported by consumption which cannot return because the wealth underlying that consumption is gone. What we have to work with is a population ready to start making changes because the market capitalism we believed in has proven unsustainable.

    So, dumping the language of left, right, Black, White, Republican, Democrat - without regard to other nations whose systems will also be struggling as that collapse of wealth hits home - let's just face the fact that we have to find a solution that fits our need for care. Preferably one that is not attached to one's social or economic status and is simply based on our rights as human beings.

    Posted by Harold Lewis on 06/29/2009 @ 02:11PM PT

    • Report close

      You must be signed in to report content.

    • 4 people like this comment.   Like
  9. Reply to thread
  10. Bohdan  Oryshkevich

    My comment should state beyond segregationism rather than become segregationism in the last long paragraph. 

    Also, in an earlier paragraph it should state identity card rather than just identity.

    I get fired up everytime I read about Kings County Hospital.

    Bohdan A. Oryshkevich, MD, MPH

    Posted by Bohdan Oryshkevich on 06/28/2009 @ 09:02AM PT

  11. Anna H.

    I'm not sure if you've posted on this already, but see my blog link below for a link to stories from all over the country about the need for Healthcare reform NOW.

     

    http://stellawordpainting.blogspot.com/2009/06/why-we-need-healthcare-reform.html

     

     

    Thanks!

    Posted by Anna H. on 06/28/2009 @ 09:49AM PT

  12. Martin Bring

    Testimony of Wendell Potter, former executive at Cigna, before the U.S. Senate Committee on Commerce, Science and Transportation June 24, 2009

    http://commerce.senate.gov/public/_files/PotterTestimonyConsumerHealthInsurance.pdf

     

    My name is Wendell Potter and for 20 years, I worked as a senior executive at health insurance companies, and I saw how they confuse their customers and dump the sick – all so they can satisfy their Wall Street investors.


    I know from personal experience that members of Congress and the public have good reason to question the honesty and trustworthiness of the insurance industry. Insurers make promises they have no intention of keeping, they flout regulations designed to protect consumers, and they make it nearly impossible to understand—or even to obtain—information we need. As you hold hearings and discuss legislative proposals over the coming weeks, I encourage you to look very closely at the role for-profit insurance companies play in making our health care system both the most expensive and one of the most dysfunctional in the world. I hope you get a real sense of what life would be like for most of us if the kind of so-called reform the insurers are lobbying for is enacted.

     

    Posted by Martin Bring on 06/28/2009 @ 11:55AM PT

  13. Harold Lewis

    I thought Potter's testimony was great. Unfortunately, I've grown very pessimistic about our leaders' will or ability to attack the financial sector.

    As a whole, they and most of our neighbors are still admiring the emperor's new suit. They don't see the unsustainable linearity of consumption and employment. There is not simply a need for a plan to compete with the insurance industry but the need to be free from a broken financial system. 

    The wealth underlying lost jobs and lower consumption evaporated. If it returns, it will be based on the same unsustainable model. This is our opportunity to keep people focused on the public good and what it will take to find a system that isn't founded upon the linear model embraced by capitalism, communism, or soicalism.

    How we treat each other, how we care for each other, and what we believe are basic human rights all come together in this discussion over healthcare. I'm saddened that this is not the conversation in Washington.

    Posted by Harold Lewis on 06/29/2009 @ 02:28PM PT

    • Report close

      You must be signed in to report content.

    • 5 people like this comment.   Like
  14. Reply to thread
  15. Lauren Serven

    Harold has hit the proverbial nail on the head. 

    We must all insist that health care is a human right and the free market approach does not support that idea. In no case has the free market afforded us universal equitable access or a sustainable  system. Current reform plans are primarily driven by a sense of economic necessity and they fall short because they believe health as a social goal can be realized as by products of fragmented, market based services. We must never be intimidated into believing that calls for a human rights approach to health care is socialism, idealism or any other adjective they can toss in our direction.

     

    Single payer as proposed in HR 676 is as good a place to start in "building a uniquely American solution" to reform as any place. The goal is to create a sustainable, affordable provision of health care. We cannot afford to waste dollars on insurance middlemen and other corporate interests that inflate prices and deplete resources through bureaucracy, marketing, and profit-making. We also must all consider the resource of health care and not use services in  a frivolous manner. We all need to consider that with our rights comes a responsibility to use our resources wisely.

     

    Fareed Zakaria had an interesting piece on capitalism in the June 22 issue of Newsweek, and it relates to the issue of health care reform. He states that no system can work without a sense of ethics and values at its core. no matter what reforms are put in place, without common sense and judgement and an ethical standard they will prove inadequate. He postulates that one of the great shifts taking place in america has been away from the old guild system of self-regulation. Once upon a time, law and medicine and accounting viewed themselves as private sector participants with public responsibilities. As we have seen, these professions have fallen short in their sense of "public responsibility" as have a host of other businesses and professions. 

     

    This failure at self-regulation in the health care sector, be it insurance or medical providers or the recipients of care themselves has brought us to this point in history where people die because of lack of insurance or they become financially bankrupt in spite of it. The whole thing stinks and there is enough blame to go around. 

     

    Also, a nod to Dr. O, minorities do bear the brunt of health care inequality in this country. Upper middle class whites who forgo insurance can usually bear the expense of moderate medical services. Some even have money set aside for medical emergencies. For many, however, this is a luxury and even a minor medical situation may prove financially burdensome.

     

    Harold is correct when he states how we treat each other all come together in this discussion over health care. The results of this reform debate will define us as a nation well into the future. I am hoping and praying that we can all advance together towards a more humanistic society.

    Posted by Lauren Serven on 06/29/2009 @ 06:43PM PT

  16. Mary Ann Thompson

    Values? Ethics? Do we in the health industry even know the meaning of these words? As a nurse of 39 yrs, I have seen caring, compassion go down the tubes. Its a business in the true sense, profit. Even with insurance get in a car accident through no fault of your own be semiconscious and the first word the paramedic ask you is do you have insurance? Not where is the pain, how are you feeling, but how they are going to be paid and what hospital they will take you to. After the 80/20 that the insurance pays the 20% was $150,000 leaving my children and myself homeless, credit messed up and insurance dropped. The dollar and being upperclass is where you need to be if you are sick in America. The poor get state appointed health care. What does the average American get? No insurance due to a preexsisting condition. Watch Sicko

    Posted by Mary Ann Thompson on 07/02/2009 @ 08:53AM PT

  17. Carla Rautenberg

    Mary Ann, I certainly hope you have shared your story with the Administration at healthreform.gov, with Senator Bernie Sanders at his web site, and with your own congressional representatives.

    We have to make noise. LOTS of noise. If you possibly can, please come to D.C. on July 30 for the Single-Payer Rally and Lobby Day celebrating the 44th birthday of Medicare.

    Posted by Carla Rautenberg on 07/02/2009 @ 09:19AM PT

    • Report close

      You must be signed in to report content.

    • 2 people like this comment.   Like
  18. Reply to thread
  19. Barbara McNamara

    I have to admire President Obama for even allowing a "public health plan" to be considered as an option, while continuing the health plans (Medicaid, Medicare, VA etc.) we currently have in place. Although I can acknowledge that our nation is not ready to throw in the towel for a single payer public health plan, I still have to say "WHY NOT?" Initially, I believed a public plan option would be enough. Now I am not so sure. I am lucky to be on Medicare, but I have a secondary insurance from the school system I retired from, which basically pays for my prescriptions and some other costs. This secondary insurance is a constant reminder of the bureaucracy of the insurance industry, and is a real pain. Every six months or every year the insurance changes, or the number of the policy changes. Because it sometimes takes 6 months or longer for claims to be paid, and errors of denial occur quite often, I have  had to go back into my records, make phone calls, and prove I was insured. Even if, as was determined, the bill would be paid, I would still receive past due bills, because it still would not get paid for several months. My husband received a duplicate number for two separate policies, and BOTH of them claimed the other did not exist. Several phone calls, and much stress, never resolved the issue. Then there was the problem of actually collecting Social Security, due to a disability. Having to prove over and over again that I was disabled, submitting the same very lengthy documents over and over again, explaining just what I did every day to "prove" I cannot work, eventually hiring a Social Security lawyer to work on my behalf, all of these things needed to be done while I was in no physical or mental condition to deal with these matters. I am still battling the bureaucrats, and I believe I always will. For the past several years I have found myself wishing that this situation could be remedied, or at least be made easier, but the way insurances are run, it won't be. IF we are offered a public health option, the one important benefit would be that the insurance companies just may have to streamline their practices to make it easier, affordable and practical for anyone who needs coverage to be able to turn to them them as a viable option. It would force them to make their own internal reforms. If nothing else, the competition would either make or break them. It is no wonder they are fighting the public option tooth and nail. I also believe a single payer outcome will be the eventual result, as it will be the most cost effective, and it will guarantee that all of us will have access to health care.

    There are those who claim that this would just be socialized medicine, which in reality, is a simplistic misnomer. What this really is guaranteeing is the health of our nation, which is in our best interest if we are to survive at all. Any nation, particularly one that claims to be a democracy, MUST guarantee the health and well being of its citizens. It cannot pick and choose who gets well or stays well. It cannot discriminate medical care, based on social staus or financial solvency.

    I agree with all of your comments. Think how much better off all of us would be if the one thing we did not have to worry about was getting sick!


    Posted by Barbara McNamara on 07/03/2009 @ 10:19AM PT

  20. Mary Ann Thompson

    Barbara, I agree wholeheartedly with you. Just as along as you are able bodied going to work and paying your taxes as a good citizen you are of. Whether you are a vetern or average citizen no one wants to recognize you in you time of need. Why is it set up that way? All of us will getsick and/or be disabled, even the CEO of Social Security except him or her will never experience whatwe average citizen must go through. God Bless you.

    Posted by Mary Ann Thompson on 07/04/2009 @ 09:36AM PT

  21. Reply to thread
  22. Lauren Serven

    i hope everyone on this thread keeps pressuring their legislators. went to a meeting with my legislator last week. of course, the party line was eschewed, but he did say that the single payer opinion was being heard. being heard. well, folks, we have to keep letting them "hear it".

     

    my legislator was talking about a "commonwealth" approach to reform...i guess that is the new buzz word along with "uniquely american". supposedly, this commonwealth approach is a recognition that we are all in this together and we need to provide a collective health care provision that is public to operate alongside the private plans blah blah blah blah blah. of course, the devil is in the details. afterwards, i asked him if i could meet and discuss the concept with him and compare the commonwealth approach to a human rights approach. he agreed to that meeting.

     

    now we all realize that creating a sustainable health care provision runs contrary to the for-profit market based approach. legislators are doing their damnedest to scare people into thinking that unless you have "competition" people are not going to like the reform AND our entire marvelous system of health care will shrivel up and die for lack of "innovation". i don't know what is in these legislator's corn cob pipes, but they must be smoking something different from the rest of us.  even more insulting is that these folks think this argument is enough to make us think, "gee, maybe our system isn't so bad after all". we must work to convince legislators that this insinuation is nothing more than mere illusion. 

     

    from my perspective, our best bet is insisting that health care equality is a human rights issue. considering the dismal numbers coming out of the CBO and the confusion surrounding those numbers, our only firm foundation is our government's responsibility to insist that health care is in the public good and should not be treated as a commodity. my legislator referenced  how "reforming" health care will be the ultimate expression of equality in america. he stated that women's rights and slavery were issues that were once challenged amidst much protest. the civil rights legislation in the 60's were another example he gave the crowd. i was amazed at his readiness to place the reform argument in this arena because the next logical step is to create health care as a public good.

     

    no reform movement in this country has ever been accomplished without the crying and whining of a bunch of people who are just fed up with it all. as the voices of these people grow louder, more begin to "hear" the message and share in the philosophy. reform will not occur because of some magic actuarial maneuver. it will come about as americans begin to move toward the more perfect union we've been hearing about.  our message is reaching people as my legislator's remarks attest. health care is a human right.

    Posted by Lauren Serven on 07/03/2009 @ 11:40AM PT

  23. Veronika Thananan

    Please check out European systems for Health Care - my mother was a housewife and not employed for salary her whole life and even after my dad passed away she still gets treatment for a sum of 10.- Euro per month to the state insurance - what happens to tax payers' money in your Great Nation ???

    Posted by Veronika Thananan on 07/07/2009 @ 10:18PM PT

  24. Jeanie  Embry

    Rahm Emanuel has been floating idea of "trigger" since January.  What a traitor to Change and REAL health care reform!  The "trigger" is a trap to kill health care reform. It would delay the public option for years, even though we're facing a health care crisis now.  Single-payer is a moral and fiscal imperative; Single-payer NOW !! 

    Posted by Jeanie Embry on 07/08/2009 @ 12:06PM PT

  25. Dan Spencer

    Bravo! You are the only one on Change.org that gets it.

    Call your reps and ask them to support John Conyers and HR 676. Not the obama plan. Single payer or leave medicare alone period. 

    Posted by Dan Spencer on 08/11/2009 @ 03:46AM PT

Add a Comment

For your comment to be published, you will need to confirm your email address after submitting your comment.

If you already have an account, click here to log in.

Comments on Change.org are meant for further exploration and evaluation of the ideas covered in the posts. To that end, we welcome constructive comments. However, we reserve the right to delete comments that are offensive, abusive, or off-topic; that contain ad hominem attacks; or that are designed to subvert or hijack comment threads rather than contribute to them. Repeat offenders may be permanently removed from the site at our discretion.

Author

Twitter Feed

Timothy Foley

Tim has been an online organizer and blogger on health care policy for the Obama for America campaign (during the primaries) and currently for the Committee of Interns and Residents/SEIU Healthcare, a labor union for intern and resident doctors. Views expressed here are Tim's, and don't represent the positions of CIR or SEIU.

close

This user's Profile page is not public. They have restricted it to only their friends.

Already a Member?

Create an Account

You must create a Change.org account to complete this action.
If you already have an account click here.