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By Cassandra Effect, September 21, 2009 12:04 pm

President Obama was on the Sunday talk show circuit this week in an unprecedented 5 show appearance.  His discussion around what is a tax and his analogy to equating health care to auto insurance is a fascinating glimpse into the mind of someone who thinks he can fools the American people.  To wit:

1) He actually takes George Stephanopoulos to task for using the dictionary definition of a “tax”

2) Obama’s logic of comparing health insurance to auto insurance is completely faulty and PROVES THE EXACT OPPOSITE of his point!  Obama says that we all pay about $900 per person in an “extra” fee for uninsured people’s health care.  His argument is that by having EVERYONE buy health care we will somehow each pocket that difference.  But the Auto Insurance market destroys that argument.  Nearly every state that has mandatory auto insurance (48 of them),  ALSO requires you to buy UNINSURED MOTORIST (UMI) coverage.    Strangely enough, UMI costs between 15-22% of the total policy cost.   So even with an auto insurance mandate, I AM STILL PAYING FOR THE UNINSURED.  Except now its a line item on my bill versus a hidden cost.  Well doesn’t that make me feel all warm and fuzzy inside now.  More info at The Council on Affordable Health Insurance .  Mr. Obama may be selling but the American people aren’t buying.

Full transcript at ABC

STEPHANOPOULOS: You were against the individual mandate…

OBAMA: Yes.

STEPHANOPOULOS: …during the campaign. Under this mandate, the government is forcing people to spend money, fining you if you don’t

How is that not a tax?

OBAMA: Well, hold on a second, George. Here — here’s what’s happening. You and I are both paying $900, on average — our families — in higher premiums because of uncompensated care. Now what I’ve said is that if you can’t afford health insurance, you certainly shouldn’t be punished for that. That’s just piling on.

If, on the other hand, we’re giving tax credits, we’ve set up an exchange, you are now part of a big pool, we’ve driven down the costs, we’ve done everything we can and you actually can afford health insurance, but you’ve just decided, you know what, I want to take my chances. And then you get hit by a bus and you and I have to pay for the emergency room care, that’s…

STEPHANOPOULOS: That may be, but it’s still a tax increase.

OBAMA: No. That’s not true, George. The — for us to say that you’ve got to take a responsibility to get health insurance is absolutely not a tax increase. What it’s saying is, is that we’re not going to have other people carrying your burdens for you anymore than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase.

People say to themselves, that is a fair way to make sure that if you hit my car, that I’m not covering all the costs.

STEPHANOPOULOS: But it may be fair, it may be good public policy…

OBAMA: No, but — but, George, you — you can’t just make up that language and decide that that’s called a tax increase. Any…

STEPHANOPOULOS: Here’s the…

OBAMA: What — what — if I — if I say that right now your premiums are going to be going up by 5 or 8 or 10 percent next year and you say well, that’s not a tax increase; but, on the other hand, if I say that I don’t want to have to pay for you not carrying coverage even after I give you tax credits that make it affordable, then…

STEPHANOPOULOS: I — I don’t think I’m making it up. Merriam Webster’s Dictionary: Tax — “a charge, usually of money, imposed by authority on persons or property for public purposes.”

OBAMA: George, the fact that you looked up Merriam’s Dictionary, the definition of tax increase, indicates to me that you’re stretching a little bit right now. Otherwise, you wouldn’t have gone to the dictionary to check on the definition. I mean what…

STEPHANOPOULOS: Well, no, but…

OBAMA: …what you’re saying is…

STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.

OBAMA: My critics say everything is a tax increase. My critics say that I’m taking over every sector of the economy. You know that.

Look, we can have a legitimate debate about whether or not we’re going to have an individual mandate or not, but…

STEPHANOPOULOS: But you reject that it’s a tax increase?

OBAMA: I absolutely reject that notion.

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By Cassandra Effect, September 10, 2009 8:14 pm

The US Census came out with a report on Income, Poverty, and Health Insurance Coverage  today.

some quick hits:

20% of the Uninsured are illegals – and strangely only 44% of the “foreign born – not a citizen” reported being uninsured.  Now I’m sure there some Canadians living here and shuttling back home for their doctor visits, but you have to wonder how many of the 56% of non-citizens are getting their care through our Medicaid programs.

30% of American Indians and Alaska Natives are uninsured (how about that great Government health care!? see Will Obama Health Care Reform look like the Indian Health Service)

Families with RELATED children had the LOWEST uninsured rates of any group (less than 10%).   Could it be that traditional families with two adults plus kids is a viable solution for encouraging personal responsibility.

Young Adults had the highest rates of uninsurance at 28%  for 18-24 year olds and 26% for 25-34 year olds.  Could their behavior be entirely rational?  That is not buying insurance when you likely don’t need it?  Of course!  This age group only need catastrophic care – not pre-paid medical care!

Plenty more available from the Main Stream Media but you won’t see these stats – I guarantee it!

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By Cassandra Effect, September 9, 2009 9:44 pm

Its late and I just got into my hotel in Washington DC – so I’ll make this short and sweet regarding Obama’s Address to the Joint Session of Congress.  He is on the ropes and trying to repackage his health care bill to ensure he gets SOMETHING out of Congress to he can declare victory.  I listen on the radio on the drive to DC but it wasn’t hard to catch most of his BS.

Here are the things that you should be paying attention to:

1) He promises the new law will take 4 years to go into effect.  This ensures get gets to brag about bringing health care reform and run on that for his second term without having to actually be ACCOUNTABLE for its results.  By then its too late and he’s in his 2nd term of office.

2) He made alot of smarmy references to the HR 3200 detractors and kept saying his plan didn’t do any of the things people have been attacking him on.  Of course this is mixing the issues – Obama has not had a plan until tonite in front of the American people.  So that makes his attack on others remarkably disingenuous.

 3) He promises three big things to the American people – More security and stability for those with coverage, Provide insurance for those who don’t have it, and slow the costs of health care.

Lets take a closer look at these pieces of the plan

1. Guaranteed Coverage without any problems for pre-existing conditions
2. No Lifetime Cap on benefits
3. A government mandated max on out of pocket expenses
4. Force insurance companies to cover “At no extra charge” preventative medicine (check ups, mammograms, etc)
5. Mandatory Personal Health Insurance Coverage

These four Mandates will result in HIGHER INSURANCE PREMIUMS – there is no way these things will result in LOWER COSTS! 

The Most DISTURBING part of the plan is the proposal to create a government sponsored “Insurance Exchange”  that will be able to serve the people who don’t currently have health insurance.  Insurance plans will want to compete for the millions of people who enter this “exchange” but realize this : the GOVERNMENT will leverage these millions of people just like any other Payer, and the Insruance companies will not want to be viewed negatively by the Feds, so do you REALLY think they will charge fair market prices to this group of government subsidized people?   I don’t think so.  They will charge lower than normal prices to entice people to sign up with them just like they did with Medicare Part D benefits programs.   Regular folks with traditional insurance will look on and wish they had these cheap plans and then the tidal wave rush to abandon your employer program for the quasi government programs will be on.

Whats missing of course is PORTABILITY – the ability for me to own my personal policy and not have to worry about my employer changing my benefits arbitrarily.

His plan on paying for the plan is the Trojan Horse to the whole thing:

By requiring everyone to buy more expansive policies, costs WILL go up, which will kick in his provision to force spending cuts.  Which no one will like – so either rationing will occur or your taxes will go up, or worse yet you will see the costs shift to those with paid for insurance.   Hold on – I reported on this yesterday in Sneak Peek at Obama’s new health care proposal – if you make more than $40,000 per year you will PAY MORE!

Now, add it all up, and the plan I’m proposing will cost around $900 billion over 10 years — less than we have spent on the Iraq and Afghanistan wars, and less than the tax cuts for the wealthiest few Americans that Congress passed at the beginning of the previous administration.  (Applause.)  Now, most of these costs will be paid for with money already being spent — but spent badly — in the existing health care system.  The plan will not add to our deficit.  The middle class will realize greater security, not higher taxes.  And if we are able to slow the growth of health care costs by just one-tenth of 1 percent each year — one-tenth of 1 percent — it will actually reduce the deficit by $4 trillion over the long term.

I wonder what “LONG TERM” Mr Obama used for his calculations – I’m thinking double digit years here!  Anyone do the math on this?  Its ridiculous, and more of the same BS from Politicians who like to use big numbers to impress us. 

No surprise that he dragged out the still warm corpse of Ted Kennedy to sell his plan as a moral issue.  Yawn.

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By Cassandra Effect, September 8, 2009 7:03 pm

As Obama prepares to deliver his Health Care Speech on Wednesday night, there is a bill already in Congress which performs most of the functions that the Senate Finance Committee is indicating it will include in its new version of the health care bill.  That already written legislation is S391 The Healthy Americans Act.  I already reported on this to a small degree in Senate Finance Committee to release health bill soon.   The good news is this bill is less than 200 pages long, so you should be able to read it quickly.  It’s important that you have an understanding of this bill and what it means as 7 of the Senate Finance Committee members are also sponsors of this bill, and it is Bi-Partisan.  You should expect the Senate Finance Committee bill to incorporate many parts of this bill.

The bill requires all people to buy insurance.  Subsidized of course to up to 400% of the Federal Poverty Level.  It eliminates pre-existing exclusions.  And it requires all insurance products to provide at a minimum, the same benefits that Federal Employees receive.  These benefits include $15 copays for doctor visits.   Requiring these generous federal benefits for every American will NOT help reduce insurance costs!  It will make all Americans expect to pay next to nothing out of pocket, and eliminate any incentives to create new models of insurance packages such as high deductible policies, Health Savings Accounts and other novel forms of providing insurance.

The catch to making the Act work is that employees will now buy their own policies, which they own in their name rather than receive it through their employer.  They assume that employers will take the money they have been spending on employee health care and convert that money into increased wages.  Do you REALLY think employers will comply with this part of the scheme.  I can assure you that employers will looks to pocket some of the money that they have been paying and what they they will gives back to employees!  The Act would have the IRS collect your health insurance premiums through the withholding process to ensure that there are no free riders in the system and that EVERYONE pays in.  Can you say another government department that will need to be expanded so that it can be dedicated to collecting and managing the transfer of these payments to your insurer?  

The Lewin Group did a study (HERE and HERE) on the program and gave it a thumbs up

The Brookings institute gave props to it – “It’s not perfect, but neither is anything else.” 

It also has the Congressional Budget Office seal of approval

Watch out folks – the Old Guard Republicans do want to pass a bill – they are terrified of not giving people free stuff and being viewed as the party of “No”.  Free giveaways are what politicians do to endear themselves to their constituents.

The insanity of the entire bill is that it is projected to  save only $22 per year per family in out of pocket costs (premiums plus copays, etc).  What you say?  Why bother all this to save $22?  Well my friend – this is a WEALTH TRANSFER program!  Households making under $40,000 will see savings, but any household making more than $40,000 per year will PAY MORE!    Now that’s my kind of change!  Oh wait – NOT!

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By Cassandra Effect, September 5, 2009 8:51 pm

From the NY Times:

Senator Max Baucus, Democrat of Montana, signaled his intentions in a telephone conference call with five other committee members who have been struggling for months to forge a bipartisan bill and break a partisan stalemate in Congress, an official familiar with the call said.

Strange don’t you think ?  The Democrats have a majority in the House, and until Ted Kennedy died, a filibuster proof majority in the Senate.  yet the NY Times somehow considers this a partisan stalemate!  What the Times won’t admit is is it isn’t partisanship that’s holding it up, but constituent backlash which is freaking out some faux conservative Dems who may actually want to run again in 2010.

According to the Times, the bill would contain the following:

• Mandatory Health Insurance by all people
• No exclusions for pre-existing conditions – and a maximum that insurers can charge high risk people.  Guess who the cost is shifting to – you got it- healthy young people.  The ones who voted in droves for Obama.  The irony is delicious, isn’t it?
• Employers must help pay for coverage for low income workers
• Medicaid will become accessible to those who are 133% of the Federal Poverty Level, and Subsidies would be available for people earning up to 300% of the Poverty Level.  In case you aren’t paying attention, that is $66,000 for a family of four.  And “subsidies” means wealth transfer, meaning  higher taxes from those who earn more than that level.
• The new Medicaid recipients would be funded in part by States.  Gee – how will they do that?  Raise taxes of course.  This would be Obama’s way of avoiding directly taxing his dear people.  he would make the STATES do it, not the Federal Government!  What a crock!
• The bill will create consumer owned health care co-ops to compete with private insurers.  I’ll be eager to see the details on how exactly they plan on having the Fed subsidize and back up these co-ops.

and the coup d’grace:

To help finance the legislation, Mr. Baucus is expected to propose a new tax on insurance companies selling policies with premiums far exceeding the national average, roughly $13,000 a year for family coverage.

What do you think “Far Exceeding” would mean?  And lets be real here – with large employers being self funded, its in the employers self interest to “mark up’ the value of the health insurance benefit they are providing so that they can generate maximum tax savings.  the “value” of the insurance through a self-funded employer is not a transparent transaction since the employer is only buying reinsurance and paying the bills as they come.  Anyone working for a Fortune 500 company should expect to be the recipient of the “Cadillac Health Plan” Tax they will be proposing.  bet your bottom dollar on that one!

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By Cassandra Effect, August 13, 2009 10:17 am

The White House has used the bully pulpit today, with David Axelrod sending out an email that he hopes will go viral.  Its bad enough that I get spam all day long in my email box, and that President Obama seems to be EVERYWHERE, but now I have to look forward to getting this email from dozens of people.  Way to use that bully pulpit!  The email attempts to debunk eight health care “myths” , eight reasons why we need health careinsurance reform and eight of Obama’s health care policy goals.   This is the first glimpse that Obama recognizes that a “Big Solution” will not be able to happen.  Therefore he is placing more winnable, small points on the table so he can declare victory in the Fall, and deliver on his campaign promise of Health Care Reform. Most reasonable would agree with the problems that are delineated in list of ”reasons we need health insurance reform.  The devil is in the details and the solutions.  The most publicly discussed bill, HR 3200, is a massive attempt to require government control of health care.  It is completely unacceptable to imagine such nonsense. 

No where in the email does it explain how will will pay for all of this additional  health care.  And that, my friend, should cause you great concern.

Cassandra Effect has been slowly debunking the alleged “myths” with facts of our own.  See:

Lies, Misrepresentations and Weasel Words from the White House FAQ on Health Insurance Reform, part 1

Lies, Misrepresentations and Weasel Words from the White House FAQ on Health Insurance Reform, part 2

Lies, Misrepresentations and Weasel Words from the White House FAQ on Health Insurance Reform, part 3

Dear Friend,

This is probably one of the longest emails I’ve ever sent, but it could be the most important.

Across the country we are seeing vigorous debate about health insurance reform. Unfortunately, some of the old tactics we know so well are back — even the viral emails that fly unchecked and under the radar, spreading all sorts of lies and distortions.

As President Obama said at the town hall in New Hampshire, “where we do disagree, let’s disagree over things that are real, not these wild misrepresentations that bear no resemblance to anything that’s actually been proposed.”

So let’s start a chain email of our own. At the end of my email, you’ll find a lot of information about health insurance reform, distilled into 8 ways reform provides security and stability to those with or without coverage, 8 common myths about reform and 8 reasons we need health insurance reform now.

Right now, someone you know probably has a question about reform that could be answered by what’s below. So what are you waiting for? Forward this email.

Thanks,
David

David Axelrod
Senior Adviser to the President

P.S. We launched www.WhiteHouse.gov/realitycheckthis week to knock down the rumors and lies that are floating around the internet. You can find the information below, and much more, there. For example, we’ve just added a video of Nancy-Ann DeParle from our Health Reform Office tackling a viral email head on. Check it out:

8 ways reform provides security and stability to those with or without coverage

Ends Discrimination for Pre-Existing Conditions: Insurance companies will be prohibited from refusing you coverage because of your medical history.
Ends Exorbitant Out-of-Pocket Expenses, Deductibles or Co-Pays: Insurance companies will have to abide by yearly caps on how much they can charge for out-of-pocket expenses.
Ends Cost-Sharing for Preventive Care: Insurance companies must fully cover, without charge, regular checkups and tests that help you prevent illness, such as mammograms or eye and foot exams for diabetics.
Ends Dropping of Coverage for Seriously Ill: Insurance companies will be prohibited from dropping or watering down insurance coverage for those who become seriously ill.
Ends Gender Discrimination: Insurance companies will be prohibited from charging you more because of your gender.
Ends Annual or Lifetime Caps on Coverage: Insurance companies will be prevented from placing annual or lifetime caps on the coverage you receive.
Extends Coverage for Young Adults: Children would continue to be eligible for family coverage through the age of 26.
Guarantees Insurance Renewal: Insurance companies will be required to renew any policy as long as the policyholder pays their premium in full. Insurance companies won’t be allowed to refuse renewal because someone became sick.
Learn more and get details: http://www.WhiteHouse.gov/health-insurance-consumer-protections/

8 common myths about health insurance reform
Reform will stop “rationing” – not increase it: It’s a myth that reform will mean a “government takeover” of health care or lead to “rationing.” To the contrary, reform will forbid many forms of rationing that are currently being used by insurance companies.
We can’t afford reform: It’s the status quo we can’t afford. It’s a myth that reform will bust the budget. To the contrary, the President has identified ways to pay for the vast majority of the up-front costs by cutting waste, fraud, and abuse within existing government health programs; ending big subsidies to insurance companies; and increasing efficiency with such steps as coordinating care and streamlining paperwork. In the long term, reform can help bring down costs that will otherwise lead to a fiscal crisis.
Reform would encourage “euthanasia”: It does not. It’s a malicious myth that reform would encourage or even require euthanasia for seniors. For seniors who want to consult with their family and physicians about end-of life decisions, reform will help to cover these voluntary, private consultations for those who want help with these personal and difficult family decisions.
Vets’ health care is safe and sound: It’s a myth that health insurance reform will affect veterans’ access to the care they get now. To the contrary, the President’s budget significantly expands coverage under the VA, extending care to 500,000 more veterans who were previously excluded. The VA Healthcare system will continue to be available for all eligible veterans.
Reform will benefit small business – not burden it: It’s a myth that health insurance reform will hurt small businesses. To the contrary, reform will ease the burdens on small businesses, provide tax credits to help them pay for employee coverage and help level the playing field with big firms who pay much less to cover their employees on average.
Your Medicare is safe, and stronger with reform: It’s myth that Health Insurance Reform would be financed by cutting Medicare benefits. To the contrary, reform will improve the long-term financial health of Medicare, ensure better coordination, eliminate waste and unnecessary subsidies to insurance companies, and help to close the Medicare “doughnut” hole to make prescription drugs more affordable for seniors.
You can keep your own insurance: It’s myth that reform will force you out of your current insurance plan or force you to change doctors. To the contrary, reform will expand your choices, not eliminate them.
No, government will not do anything with your bank account: It is an absurd myth that government will be in charge of your bank accounts.  Health insurance reform will simplify administration, making it easier and more convenient for you to pay bills in a method that you choose.  Just like paying a phone bill or a utility bill, you can pay by traditional check, or by a direct electronic payment. And forms will be standardized so they will be easier to understand. The choice is up to you – and the same rules of privacy will apply as they do for all other electronic payments that people make.
Learn more and get details:
http://www.WhiteHouse.gov/realitycheck
http://www.WhiteHouse.gov/realitycheck/faq

8 Reasons We Need Health Insurance Reform Now

Coverage Denied to Millions: A recent national survey estimated that 12.6 million non-elderly adults – 36 percent of those who tried to purchase health insurance directly from an insurance company in the individual insurance market – were in fact discriminated against because of a pre-existing condition in the previous three years or dropped from coverage when they became seriously ill. Learn more: http://www.healthreform.gov/reports/denied_coverage/index.html
Less Care for More Costs: With each passing year, Americans are paying more for health care coverage. Employer-sponsored health insurance premiums have nearly doubled since 2000, a rate three times faster than wages. In 2008, the average premium for a family plan purchased through an employer was $12,680, nearly the annual earnings of a full-time minimum wage job.  Americans pay more than ever for health insurance, but get less coverage. Learn more: http://www.healthreform.gov/reports/hiddencosts/index.html
Roadblocks to Care for Women: Women’s reproductive health requires more regular contact with health care providers, including yearly pap smears, mammograms, and obstetric care. Women are also more likely to report fair or poor health than men (9.5% versus 9.0%). While rates of chronic conditions such as diabetes and high blood pressure are similar to men, women are twice as likely to suffer from headaches and are more likely to experience joint, back or neck pain. These chronic conditions often require regular and frequent treatment and follow-up care. Learn more: http://www.healthreform.gov/reports/women/index.html
Hard Times in the Heartland: Throughout rural America, there are nearly 50 million people who face challenges in accessing health care. The past several decades have consistently shown higher rates of poverty, mortality, uninsurance, and limited access to a primary health care provider in rural areas. With the recent economic downturn, there is potential for an increase in many of the health disparities and access concerns that are already elevated in rural communities. Learn more: http://www.healthreform.gov/reports/hardtimes
Small Businesses Struggle to Provide Health Coverage: Nearly one-third of the uninsured – 13 million people – are employees of firms with less than 100 workers. From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. Much of this decline stems from small business. The percentage of small businesses offering coverage dropped from 68% to 59%, while large firms held stable at 99%. About a third of such workers in firms with fewer than 50 employees obtain insurance through a spouse. Learn more: http://www.healthreform.gov/reports/helpbottomline
The Tragedies are Personal: Half of all personal bankruptcies are at least partly the result of medical expenses. The typical elderly couple may have to save nearly $300,000 to pay for health costs not covered by Medicare alone. Learn more: http://www.healthreform.gov/reports/inaction
Diminishing Access to Care: From 2000 to 2007, the proportion of non-elderly Americans covered by employer-based health insurance fell from 66% to 61%. An estimated 87 million people – one in every three Americans under the age of 65 – were uninsured at some point in 2007 and 2008. More than 80% of the uninsured are in working families. Learn more: http://www.healthreform.gov/reports/inaction/diminishing/index.html
The Trends are Troubling: Without reform, health care costs will continue to skyrocket unabated, putting unbearable strain on families, businesses, and state and federal government budgets. Perhaps the most visible sign of the need for health care reform is the 46 million Americans currently without health insurance – projections suggest that this number will rise to about 72 million in 2040 in the absence of reform. Learn more: http://www.WhiteHouse.gov/assets/documents/CEA_Health_Care_Report.pdf