UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who has covered Washington during all or part of one quarter of America's presidencies and edited alternative journals since 1964. The Review has been on the web since 1995. See main page for full contents

May 11, 2009

OBAMA'S HEALTH INSURANCE COMPANY BAILOUT

David Sirota, Open Left - So the big news today is President Obama's press conference with the health insurance industry touting the industry's "voluntary" commitment to slashing $2 trillion off Americans' health care bills over the next decade. The New York Times reports that this voluntary announcement is motivated by the health insurance industry's "hope to stave off new government price constraints that might be imposed by Congress or a National Health Board of the kind favored by many Democrats."

My three questions are really simple:

1) If the health industry is saying it can lower costs by $2 trillion over 10 years and remain highly profitable, isn't the industry admitting that it was planning to absolutely bilk consumers, and has been bilking consumers in the past? Put another way, isn't the industry admitting that it's entire business model is based on outright profiteering?

2) Why should the American public believe the health industry is going to voluntarily do anything to cut into its profits? Health executives have a fiduciary responsibility to private shareholders to maximize profits. Voluntarily lowering those profits would violate that fiduciary responsibility. Are we really expected to believe these health executives will, out of the goodness of their hearts, violate their fiduciary responsibilities? What has actually changed to suggest that they will violate their fiduciary responsibilities and help health care consumers?

3) Isn't President Obama legitimizing voices that will use that added credibility later on to try to derail serious health care reform? Today's press conference has the President of the United States effectively saying that the health insurance industry should have a major seat at the health-reform table - and that it should be trusted. But any serious health care reform will need to take on the health insurance industry in a way that will make that industry unhappy. . .

2 Comments:

Anonymous Anonymous said...

Qbama is a stupid clownish whore. He's on every channel posturing as a thoughtful calmly authoritative cliche that only the wistful and naive believe. And he's a lot of things but he ain't naive.

May 11, 2009 8:49 PM  
Anonymous aDCBeast said...

It is a stupid person that creates strawman arguments just to have something to whine about.

May 12, 2009 5:47 PM  

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