Editore"s Note
Tilting at Windmills

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December 5, 2009

AETNA ASKS FOR IT.... Under the circumstances, you'd think private health insurance companies would be on their best behavior. After all, lawmakers are considering all kinds of changes to the system -- including increased regulation of the industry and the creation of a possible public option -- because insurers have done so poorly in providing a critical public service.

This should be, in theory, a time in which these companies put their best foot forward -- a chance for insurers to prove they can do the right thing.

It's interesting, then, to see Aetna announce that it intends to "force up to 650,000 clients to drop their coverage next year as it seeks to raise additional revenue to meet profit expectations." It's also raising premiums on its customers -- again.

Senate Majority Leader Harry Reid (D-Nev.) did the right thing today when he called Aetna out. (Jed Lewison has the video)

"You see, one of the largest private insurance companies in America made a lot of money last year -- more than a billion dollars, in fact. Its chairman and CEO took home at least $100 million of that money himself.

"This health care company is going to make a healthy profit again this year. But its executives decided the profit they're making isn't quite big enough. So this multibillion-dollar company found a clever way to make sure next year's bottom line is even bigger: it's raising its rates.

"As you might expect, those higher premiums are going to be too expensive for many. How many? It could be as many as 650,000 people.

"That's more than the entire populations of North Dakota, Vermont and Wyoming. It's more than the entire populations of Baltimore and Boston and Denver and Seattle. How many people is this one company willing to drop? You could count every man, woman and child in Las Vegas and still have almost 100,000 people left over.

"But here's the worst part: That shocking estimate comes directly from the president of the company himself. The means the company devised this strategy, crunched the numbers and saw how many American families it was going to hurt. Then the bosses shrugged their shoulders and decided to go ahead with it anyway."

And remember, for those 44 senators who oppose the public option -- 40 Republicans, three Democrats, and Joe Lieberman -- protecting companies like Aetna from even a little competition from a public plan is worth killing health care reform over.

Steve Benen 2:20 PM Permalink | Trackbacks | Comments (41)

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Comments

I wonder how Senator Joe from "The Hartford" will choose to defend this latest egregious ripoff from his real employers, the insurance industry?

Posted by: robert on December 5, 2009 at 2:27 PM | PERMALINK

It's the free market in action.

Posted by: martin on December 5, 2009 at 2:30 PM | PERMALINK

I hope this the hubris before the fall, but I fear that what we're seeing is more like a mafia chief reveling in his power to put it to others.

Posted by: J on December 5, 2009 at 2:31 PM | PERMALINK

Conflate this with the f**king Banking Industry!

Its the same form of business ethic after all. Parasite Capitalism. Borrow from the feds or simply buy the feds and then don't reinvest back in the nation.

Its all cut from the same cloth so hang it around the necks of Lieberman and the wingnuts! Let them eat their own ignorance for a change. They cant complain about the banking bailouts on one hand and then worship the precious "private" health care economy. Private my ass. Its a racket and the only choice for 70% of americans is to go with or without.

The Big Banks, Wall Street, The Health Care Industry are all operating on the same principle: privatize the gains and put the losses back on the public.

Posted by: The Joads on December 5, 2009 at 2:45 PM | PERMALINK

A rhetorical question no more...

From another thread a while back I asked:

How much can you step on the face of Americans
in the name of capitalism before they will revolt?

I can answer it now: Until one's feet get tired. Americans faces are up to the challenge.
Unfortunately now I have a new rhetorical question: Is this what makes America so great?

Posted by: koreyel on December 5, 2009 at 2:57 PM | PERMALINK

I'd like to see the names, home addresses and families' photos posted in a public place so that that we can identify them wherever they go. What part of Death Panels are you not seeing? How many in Congress have some form of health insurance coverage thru AETNA? How much money has AETNA and its subsidiaries paid to Congress people? I want to see their names and the amounts. I want transparency, and I want it now.

Posted by: HC Terrorists on December 5, 2009 at 3:06 PM | PERMALINK

The avarice of Aetna and its executives is stunning. Even worse is the behavior of members of congress blocking a robust public option that would prevent this very thing from happening.

Aetna is going to price 600,000 people out of their health insurance.

Pehaps another 400k will tighten their belts in other areas (food, medicine, college) or as Rush would say bend over and grab their ankles.

When the LIEberman weakened health plan is passed the 600k will be forced to buy insurance. Some will have no choice but to go back to Aetna.

Polls have shown that most people are happy with their insurance. I don't understand that result but, I'd be curious to see if people are still so happy with their plans.

Posted by: Winkandanod on December 5, 2009 at 3:10 PM | PERMALINK

Under the circumstances, you'd think private health insurance companies would be on their best behavior.

Why would you think that? Who's going to punish them?


.

Posted by: spork_incident on December 5, 2009 at 3:13 PM | PERMALINK

Let's see Anit-Trust charges brought, now. Who will fight it?

Posted by: HC Terrorists on December 5, 2009 at 3:18 PM | PERMALINK

it would be worse if this was news to anyone in Congress.

40 republicans, 3 DINOs, and skank LIEberman all know this full well, have known it, and have fought tooth and nail for AETNA and their ilk for more than a year now.

Obama knows it, yet he NEVER let single payer see the light of day.

What could possibly be surprising about AETNA being so arrogant as to make this announcement knowing full well that Obama and his corportist republican and democratic friends in Congress are fighting tooth and nail just so AETNA and their ilk can continue to do just this sort of thing.

Posted by: pluege on December 5, 2009 at 3:27 PM | PERMALINK

How much can you step on the face of Americans
in the name of capitalism before they will revolt?

there is nothing capitalistic about the health insurance market - they operate WITHOUT any true competition. If they had for the last 40 years prices would be half what they are today.

Posted by: zoot on December 5, 2009 at 3:29 PM | PERMALINK

I'm so shocked this has come out. it's almost as if the Aetna president thinks nobody can do -- or nobody in a position of power in the government would do -- anything about it!!!

How can that be? Joe? Ben? Harry? Barack? Max?

Luckily, there's football games and a big dinner tomorrow after church, and then maybe next week we'll find out who else has tiger woods been screwing...

We all know the public option is just obama bringing socialism...

...in your dreams, folks, in your dreams...

Posted by: neill on December 5, 2009 at 3:33 PM | PERMALINK

wink,

most people are happy with their insurance because they pay only a fraction of its cost. they have no concept of how much their employers are paying for it, and how much rapidly rising premiums are preventing companies from raising wages or investing the money elsewhere in the business.

most people are happy with their insurance because for the most part, it does exactly what it's supposed to. your kid breaks an arm, you take him to the er and the insurance company pays just as the brochure said it would. they don't see companies weaseling out of coverage for pre-existing conditions.

Posted by: mudwall jackson on December 5, 2009 at 3:35 PM | PERMALINK

Has Harry grown a pair? Is it too late?

Posted by: Sarah Barracuda on December 5, 2009 at 3:46 PM | PERMALINK

I agree with Mudwall. I managed a government agency for several years. The employees were upset that they were not getting pay raises. What we could never get across was their total compensation was increasing faster than inflation but it was all going to their health insurance.

Posted by: Objective Dem on December 5, 2009 at 3:46 PM | PERMALINK

Won't all of the insurance companies be making announcements like that at this time of year? If they do, and if the announcements have the same themes, then the timing of the Senate debate could hardly be more favorable for passage.

Compared to that $100M for one CEO for one year, the uncertainties in the Health Care proposals look like small details.

Posted by: MatthewRMarler on December 5, 2009 at 3:53 PM | PERMALINK

2004 rate developed fuels

Posted by: kamryncoli on December 5, 2009 at 4:08 PM | PERMALINK

Aetna, I sorry I metya. If anything might convince some of these senators to get in line, it would be something like this. Unfortunately, nothing will convince too many of them. Remember, and vote your memory.

Posted by: ericfree on December 5, 2009 at 4:11 PM | PERMALINK

"This health care company [...] -- Harry Reid, talking about Aetna

*Health care* company??? Since when??? The only "doctoring" they do is on their books and the only "surgeries" are on your wallet. I do wish our elite Senators were a tad more careful with language.

Posted by: exlibra on December 5, 2009 at 5:03 PM | PERMALINK

Nationalize the health care insurance industry.

I'm going to vote for my neighbor's dog in 2012. If this bitch wins I'll have a friend in Washington.

Shovel ready projects for grave diggers.

Posted by: anonymous on December 5, 2009 at 5:11 PM | PERMALINK

Nothing surprising here. Corporations have all the rights of people, don't you know? Our illustrious senators must attend to their needs. The surprising part is the fine people of CT re-elected Joe the hypocritical gasbag. Like the re-election of the-worst-president-ever, it shows our electorate lacks discrimination. We deserve the plutocracy in which we live.

Posted by: Don on December 5, 2009 at 5:16 PM | PERMALINK

Most Americans are happy with their health insurance because they haven't tried to use it.

Posted by: pbg on December 5, 2009 at 5:19 PM | PERMALINK

"How much can you step on the face of Americans
in the name of capitalism before they will revolt?
I can answer it now: Until one's feet get tired. Americans faces are up to the challenge.
Unfortunately now I have a new rhetorical question: Is this what makes America so great?"

I think you need to understand Aetna IS America. America is the big corporations and CEO's and politicians and defense contractors.

Posted by: Saint Zak on December 5, 2009 at 5:27 PM | PERMALINK

@Objective Dem-Retired fed myself and my net has decreased the past 3 years through premium increases with BC/BS. I'm down about $1800 per year the last 3 years with cost of living increases. Wrote to my rep with the details and never heard back from the republican bitch.

Posted by: Dave on December 5, 2009 at 5:28 PM | PERMALINK

your elected politicians do not care about your needs unless you have $. Long live the Plutocracy!

Posted by: Don on December 5, 2009 at 5:36 PM | PERMALINK

In addition to the usual witty repartee typical of Beltway cocktail parties, nowadays an oft repeated toast to the American people is being heard: "Marie Antoinette was a bleeding heart... Let them eat shit!" (followed as always by much laughter and the tinkling of glasses).

Posted by: JW on December 5, 2009 at 5:41 PM | PERMALINK

Actions such as Aetna's will continue until and unless the 600,000 to be dropped as well as others take to the streets and make a serious issue of this.

Posted by: manfred on December 5, 2009 at 5:43 PM | PERMALINK

Dave, you have my sympathy, also have you read the article on BC/BS dirty dealings, it is on 'Think Progress' today, these people should be run out of the country. I hope progressives can go to Washington and demonstrate, I would but alas I am getting pretty old, if I were younger I would be there.

Posted by: JS on December 5, 2009 at 6:28 PM | PERMALINK

You're missing the point: Aetna KNOWS already that they've won and are impervious to any kind of backlash because Lieberman will protect them.

Posted by: mars on December 5, 2009 at 6:29 PM | PERMALINK

Call Aetna right now.

860-273-0888

Posted by: NedB on December 5, 2009 at 6:34 PM | PERMALINK

Why is Reid picking on the poor insurance companies?!?! It's FASCISM to criticize them for making a profit!

Posted by: Conservatroll on December 5, 2009 at 6:54 PM | PERMALINK

"Why is Reid picking on the poor insurance companies?!?! It's FASCISM to criticize them for making a profit!"

Will someone explain the technicalities of this absurdity?

Posted by: anomaly on December 5, 2009 at 7:37 PM | PERMALINK

You're missing the point: Aetna KNOWS already that they've won and are impervious to any kind of backlash because Lieberman will protect them.

No, I think it's a hostage situation. "Drop health care reform or we'll ruin the lives of 650,000 people and let you figure out how to get healthcare to them."

Aetna is one of the worst companies to deal with. It took me three years to get them to pay a claim because my doctor was on vacation and I saw another doctor in the same practice -- hell, I think it was the same exam room. But because that doctor wasn't my "primary care physician," they said they didn't have to pay.

Posted by: Mnemosyne on December 5, 2009 at 8:10 PM | PERMALINK

"Malefactors of great wealth," as a great Republican president once called them . . .

Posted by: rea on December 5, 2009 at 8:13 PM | PERMALINK

Again! Mr and Ms politician (dem or Rep). Come up with a better health plan that covers you (and all other federal employees) and we the rest of America will be all for it....I can't believe the best this country has to offer is a bunch of wealthy, retarded, self-centered, idiots to represent us. That goes for both major parties. God are they ignorant.

Posted by: middleclassand screwed on December 5, 2009 at 10:45 PM | PERMALINK

There's your trigger for you. Are you happy now, Olympia? What exactly is free about the "free" market, anyway? Jonathan Swift would have a hard time satirizing the rich in this country. A bunch of cannibals, feasting on the misery of others.

Posted by: Broken Arrow on December 5, 2009 at 11:01 PM | PERMALINK

The republiscum claim to be worried about the creation of death panels, but they are just busy protecting the Death And Suffering Panels we already have, otherwise known as the insurance companies. Health care is too important to leave to irresponsible, greedy, exploitative, for-profit companies: we need a civilized national health system.

Posted by: N.Wells on December 6, 2009 at 12:10 AM | PERMALINK

The behavior by Aetna is an indicator of a particular pathology associated with publicly traded companies: i.e. your profit has to continue to grow, each and every quarter, regardless of other economic conditions, otherwise your stock price will go down. Growth is seen as "health" in a company. I call it a pathology, because companies will take actions for the short term that are irrational for their long-term benefit in order to prop up stock price.

Posted by: Bobbi on December 6, 2009 at 8:17 AM | PERMALINK

I can't believe the best this country has to offer is a bunch of wealthy, retarded, self-centered, idiots to represent us. That goes for both major parties. God are they ignorant.

it is ignorant to believe that the bastards most people elect to represent them are ignorant. The malfeasance most of the elected politicians undertaken on behalf of themselves and their rich plutocratic brethren is by design. They go to Washington to take care of themselves and their ilk.

Posted by: pluege on December 6, 2009 at 8:21 AM | PERMALINK

To Broken Arrow
You are 100% correct, if Aetna is not the trigger then I don't know what is, I have tried to email some of the reps to put this point to them but have had a hard time getting through to their websites I hope others are having more success.

Posted by: JS on December 6, 2009 at 8:38 AM | PERMALINK

It would be really too difficult for the senator to defend himself for the number of employees he removed.

Posted by: r4i firmware on December 8, 2009 at 7:21 AM | PERMALINK




 

 

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