Health

Insurers' Bait and Switch

Author Wendell Potter is the former head of PR for CIGNAMore and more Americans are falling victim to one of the most insidious bait-and-switch schemes in U.S. history. As they do, health insurance executives and company shareholders are getting richer and richer. This industry-wide plot explains how health insurers have been able to reap record profits during the recent recession as the ranks of the uninsured and underinsured continue to swell.

It also explains why the insurance industry and its allies are pulling out all the stops to kill a measure in the California legislature that could protect state residents from losing their homes and being forced into bankruptcy if they get seriously sick or injured.

On June 2, the California Assembly passed AB 52, a bill that would give state regulators the authority to reject excessive health insurance rate increases. Similar legislation has been introduced in other state legislatures, but nowhere are the stakes higher than in California -- not only because AB 52 would allow the insurance commissioner to turn down requests for unjustifiably high rate hikes, but also because it would enable the commissioner to reject increases in deductibles as well.

Insurers Spend Big Fighting Regulations, Paying CEOs Huge Salaries

Nowhere are health insurers working harder to thwart reforms that could save consumers billions of dollars than in California. One measure they are especially determined to kill is a bill that would give state regulators the authority to reject rate increases that are excessive or discriminatory.

The California Assembly passed a bill to do just that earlier this month over the intense opposition of insurers, including the state's biggest supposedly nonprofit health plans: Blue Shield of California and Kaiser Permanente.

FDA Orders New, Straightforward Cigarette Warning Labels

New cig warningStarting September, 2012, the U.S. Food and Drug Administration (FDA) will require new, updated health warnings on cigarettes. The 25 year-old, plain-text Surgeon General warnings will be out, replaced with updated, straightforward messages like "WARNING: Tobacco smoke causes fatal lung disease in nonsmokers," "WARNING: Cigarettes are addictive" and "WARNING: Cigarettes cause fatal lung disease." The text will be much larger than the old Surgeon General's warnings, and will be accompanied by powerful pictures, like photos of corpses, diseased lungs and oral cancer. To choose the warnings, FDA reviewed relevant scientific literature, considered over 1,700 public comments and performed a survey of 18,000 citizens. The new warnings will be rotated to keep them fresh. They will cover the top 50 percent of the front and rear panels of cigarette packs, and in cigarette ads, the warnings must occupy at least 20 percent of the upper portion of each ad. The new warnings were authorized by the Family Smoking Prevention and Tobacco Control Act that President Obama signed in 2009.

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Employment-Based Health Insurance Fails America

If you haven't gotten much of a raise lately, it's probably because the extra money that might have been put in your paycheck instead went to your health insurer if you are enrolled in an employer-sponsored plan.

Many Americans haven't seen a pay increase of any kind because their employers can't both increase their wages and continue offering decent health care coverage. It has become an either-or for people like Zeke Zalaski, a factory worker in Bristol, Connecticut, who hasn't had a raise in years.

Video Highlights Casino Workers' Health Plight

Roswell Park Cancer Institute and the public health advocacy group Americans for Nonsmokers' Rights have posted a YouTube video about the plight of casino workers, some of the last employees in the country forced to breathe secondhand cigarette smoke at work. The powerful eight-minute video shows non-smoking casino workers who are ill and dying from prolonged on-the-job exposure to secondhand smoke. An attractive, young non-smoking former casino dealer with an obvious scar on her neck, Sheryl Wilkens, in a hoarse voice describes how she stuck with her job to pay bills while she raised her family. She tearfully tells how in 2006 she developed a lump on her neck, and a subsequent biopsy revealed she had cancer, even though she never smoked. Another worker, a former marathon runner, describes the decline in her health, and how she is now permanently on medication for a number of respiratory diseases caused by her chronic smoke exposure at work. Workers in the multi-billion-dollar gambling industry suffer the highest occupational exposure to secondhand smoke of any workers in the country, and have consistently been left behind as the rest of the country has gone smoke-free as the gambling industry fights to preserve smoking in casinos.

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The Decline of Employer-Based Health Insurance

The global consulting firm McKinsey & Company set off a firestorm when it released a report last week suggesting that 30 percent of U.S. businesses will stop offering health care benefits to their employees after most of the provisions of the Affordable Care Act go into effect in 2014.

The White House was quick to challenge the validity of the report, noting that McKinsey has so far refused to provide any details of the methodology used to reach its conclusion. All McKinsey will say is that its report was based on a survey of 1,300 employers and "other proprietary research."

White House deputy chief of staff Nancy-Ann DeParle, who previously headed the president's office of health care reform, called it an "outlier" and cited other studies predicting that few if any employers would drop coverage because of the Affordable Health Care Act.

Health Insurers Pump Your Premiums Into a Financial Black Hole

Money black holeEver wonder what happens to the premiums you pay for your health insurance?

You might be surprised to learn that more and more of the dollars you pay for coverage are being sucked into a kind of black hole.

It doesn't really disappear, of course. It just doesn't do you a bit of good -- unless, of course, you believe it is to your advantage that it ultimately winds up in the bank accounts of a few investors and insurance company executives, including those who have to power to deny coverage for potentially life-saving care.

Blue Shield of California's Fake Benevolence

Blue Shield of Calif. CEO Bruce BodakenAs the head of communications for two of the country's largest health insurers for almost 20 years, I recognize an orchestrated spin campaign when I see one. And boy, oh boy, did I see an award-winning one this week in San Francisco.

The supposedly nonprofit Blue Shield of California went to extraordinary lengths on Tuesday, June 7 to unveil its "bold move to address the health care affordability crisis" by pledging to limit its annual profit to no more than 2 percent of revenue. And not just going forward, mind you, but all the way back to 2010, when the nonprofit's profits were considerably more than 2 percent -- so much more that Blue Shield of California says it will refund $180 million to its policyholders.

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