Sebelius Dials Back Toughest Rhetoric on Health Care Insurers
EmailABC News' Teddy Davis and Matt Loffman report: Health and Human Services Secretary Kathleen Sebelius just finished talking to the health insurance industry's annual policy conference at the Ritz Carlton Hotel in Washington, DC.
Reporters were waiting for her to deliver the toughest portion of the remarks contained in the excerpts of that the White House provided journalists before the speech. But it didn't happen.
Instead, she dialed back the rhetoric a bit in the hopes of getting insurers back to the health care negotiating table.
Sebelius was addressing the insurance industry just one day after thousands of liberal activists protested the conference, threatening to arrest the insurance executives for industry practices.
According to the White House-provided excerpts, Sebelius was planning to say: "You can choose to take the millions of dollars you have stored away for your next round of ads to kill meaningful reform, and use them to start giving Americans some relief from their skyrocketing premiums."
Instead, Sebelius actually said: "So there's another choice: I hope that you will take the assets that you have, the influence, the bully pulpit that you have and use it to start calling for comprehensive reform to pass. Start looking at giving Americans some relief with market strategies from those who are facing skyrocketing premiums."
While the message was broadly similar, the HHS Secretary altered her remarks in such a way that they no longer directly linked the money spent on television ads with the call for consumer relief.
Sebelius struck the conciliatory tone early in her speech.
At the top of her remarks, Sebelius said, "I am not here to villify the hard working employees of insurance companies but I do have two requests going forward …. Work with us … Help us pass comprehensive health care reform."
At the close of her speech, Sebelius once again urged the insurance industry to come back to the table.
"It's not too late to work on this issue together," said Sebelius.
During a press conference which followed the Sebelius speech, Karen Ignagni, the head of the health insurance industry's trade group, said that she appreciated the Secretary's remarks.
'We can move from villification to problem solving," said Ignagni.
"I appreciated what the Secretary said. She acknowledged the concerns that the working men and women of our industry have had since July when the villification campaign began. I know that our members appreciated her acknowledging concerns that they must have — the working men and women — in our industry — the backbones of their communities — who are trying to do a good job everyday."
While Ignagni appreciated Sebelius's conciliatory tone, the insurance industry head still voiced concerns about the Obama administration's contention that it has adopted every cost control mechanism minus the public option.
Ignagni said that the insurance industry would move quickly to detail the cost control mechanisms missing from the legislation and plans to provide those to the administration, Congress, and members of the media.
Ignagni reiterated that one of the industry's chief complaints is that the individual mandate is not strong enough to ensure that everyone is compelled to obtain insurance.
On the question of profits, Ignagni said the insurance industry is happy to talk about profits because she maintains that they are low compared to other health care stakeholders.
"Other elements of the health care stakeholder community are 15-25 percent profits. Our average is 3.2 Were happy to have a discussion of profits," said Ignagni.
Ignagni added that it's important for the industry to be in the black – not the red – so that the United States does not face "hundreds of AIGs."
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Ignagni added that it’s important for the industry to be in the black – not the red – so that the United States does not face “hundreds of AIGs.”
Rabbit punch.
Posted by: D to the P | March 10, 2010, 1:34 pm 1:34 pm
Instead, she dialed back the rhetoric a bit in the hopes of getting insurers back to the health care negotiating table.
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Looking for a new job. Not that I can blame her.
Posted by: Copay | March 10, 2010, 1:41 pm 1:41 pm
maybe what we actually need is to abolish the entire insurance system in US, and promote strict regulations on charges from doctors, hospitals, drugs and medicare suppliers instead. for transition, encourage no-insurance-accepted clinics, doctors and hospitals on strict pay-as-you-go bases, and the same price for the same service for all, with the current discriminating price scales for insured, not-insured or discounted. this way, all people are treated equally in health care without worrying about having or not having insurance. people, think about it, and that is the real reform!
Posted by: cellisis | March 10, 2010, 1:44 pm 1:44 pm
maybe what we actually need is to abolish the entire insurance system in US, and promote strict regulations on charges from doctors, hospitals, drugs and medicare suppliers instead. for transition, encourage no-insurance-accepted clinics, doctors and hospitals on strict pay-as-you-go bases, and the same price for the same service for all, without the current discriminating price scales for insured, not-insured or discounted. … (typo correction!)
Posted by: cellisis | March 10, 2010, 1:46 pm 1:46 pm
Now if we would start hearing this administration bad-mouthing ambulance chasing attorneys, it might indicate that they were beginning to get off the dime.
Posted by: Ron | March 10, 2010, 1:58 pm 1:58 pm
Obama’s rage at the Health Industries are about as fake as his outrage at his Wall Street friends.
Obama has guaranteed the Health Care Industry a whole lot of new customers.
Didn’t he make some backdoor deals with HC insurers? Maybe that’s why BHO said he never campaigned for a public option.
Posted by: cassie | March 10, 2010, 2:18 pm 2:18 pm
3.2 percent profit,why is that such a crime there are many other companies making billions more. Obama is such a nincompoop. There has to be more take over in the health care bill Obama is pushing,even Pelosi does not know what is in the bill,what a bunch of incompetents we have elected,2012 can not come soon enough.
Posted by: stormerF2 | March 10, 2010, 2:19 pm 2:19 pm
At the top of her remarks, Sebelius said, “I am not here to villify the hard working employees of insurance companies but I do have two requests going forward …. Work with us … Help us pass comprehensive health care reform.”
So, let me see if I have this straight. First, the Obama administration comes out cocky with their dreams of a major healthcare overhaul. It’s the greatest bill ever done. Everyone wants it. It will pass right through. Then the ‘pushback’ phase begins from Republicans, some Democrats, and the majority of Americans. The mood then shifts from cocky to defensive. This IS the greatest bill ever done. EVERYONE wants it (whether you know it or not). It WILL pass right through (because we’re going to make sure of it). Then things start to get nasty, so now the mood shifts once again to the blame game-the Republicans are the party of no, insurance companies are evil, get healthcare or die! This is the GREATEST bill ever done. Everyone WANTS it (even if you don’t, it’s only because you don’t understand). It will PASS right through (because we’re using reconciliation). Now we have come to the groveling stage. PLEASE, please just agree with us. You can STILL come to the table and we’ll discuss things over. This bill NEEDS to pass. Obama has his legacy to think about…you don’t want to ruin that do you?
I gotta say, this whole circus has been fun to watch. Who needs soap operas?
Posted by: Shoe | March 10, 2010, 3:29 pm 3:29 pm
Funny… Obama wasn’t whining about what Health Insurance Companies spent money on when it was for HIS campaign.
Hypocrisy is Obama’s forte… lies are his norm.
Posted by: KimberlyM | March 10, 2010, 3:40 pm 3:40 pm
The “PASS IT NOW, AND WE’LL FIX IT LATER” crowd/politicians sound a lot like the management team at Toyota in regards to the “speed-up, then try to slam on the brakes, then crash, burn and die” folks managing the PRIUS et al issues.
Posted by: JMo | March 10, 2010, 3:50 pm 3:50 pm
MAYBE SEBELIUS SUDDENLY REALIZED HOW GOOFY SHE WOULD LOOK REAMING THEM OUT WHILE THE CPOMPANIES REAP A WHOPPING TWO POINT TWO PERCENT NET PROFITS.
Posted by: Temagami | March 10, 2010, 4:49 pm 4:49 pm
Finally – Problem Solving Phase
Problem:
The fundamental problem with healthcare in American is that the cost for providing healthcare is greater than the healthcare recipient can afford.
Solution:
The approach to resolve this under funded problem was to create funding pools (our current day employer based risk and cost pools) where future healthcare services would be paid from these pools for healthcare recipients that contributed premiums to these funding pools. This resulted in the creation of healthcare insurance organizations which initially were non-profit. Hospitals were basically non-profit charity funded organizations. Healthcare services were more basic.
Healthcare services began to be more advanced and costing more, but, pool funding able to handle additional cost.
Medicare program created and began huge increases in prevailing charges guaranteed to be paid by Medicare funding, but, pool funding able to handle additional cost. Institutional and professional healthcare costs in private sector continue to grow, but, pool funding able to handle additional cost. New insurance products were created to try and manage increases in healthcare cost. Then entered profit hospitals into the industry. Then entered profit healthcare insurance organizations into the industry which began a conversion of non-profit to profit organizations.
Problem:
The fundamental problem with healthcare in American is that the cost for providing healthcare is greater than the employer based risk and cost pools of healthcare recipient can afford causing an increase in the uninsured.
Risk/Cost pools created an artificial healthcare market that over the last eighty years has reached its limit for funding by healthcare recipients.
Solution:
First, we need to acknowledge that healthcare cost is greater than the capacity for individuals or pools of healthcare recipients to pay. Americans need to come together to meet this challenge by creating a single pool fund. The single pool fund needs to be funded by all that can afford to contribute and supplemented by those who can provide charitable contributions. Second, Americans need to make the right healthy life style choices to reduce the demand for healthcare services. Third, we need to change the healthcare delivery system to be cost efficient. Convert back to non-profit and charity stakeholders. Encourage community volunteer work and free clinics. Eliminate fraud and abuse in the payment system. Use best practices for facility, procurement, and resource management and create a decision support system for perpetual improvement of quality of patient care and for perpetual improvement of cost efficiencies.
Posted by: Marty | March 10, 2010, 4:50 pm 4:50 pm
Sebelius could have told them the blunt truth. This is what I would have told them:
“You represent a failed business model, that can only continue to make a profit by charging less customers more money. You have always provided no service except to leech off of the medical system. Now, you are in the process of dying as an industry. Go home, repent to your creator, and try to find a way to make an honest dollar in the future by involving yourself in some productive activity for once in your life.”
Posted by: Flash Override | March 10, 2010, 7:13 pm 7:13 pm
the same price for the same service for all, with the current discriminating price scales for insured, not-insured or discounted. this way, all people are treated equally in health care without worrying about having or not having insurance. people, think about it, and that is the real reform!
Posted by: cellisis
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Yep. I doubt many uninsured people know what an ENORMOUS screwing they get by paying cash. The health care provider doesn’t even have to bill an insurance company.
Posted by: smartlillena | March 11, 2010, 7:08 am 7:08 am