September 13, 2010

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Zero Tolerance for Dissent from Obama Bureaucrats
Part Two of Three

By Dave Andrusko

Check out these cut-to-the-chase and very ominous headlines:

  • "Gangster Government Stifles Criticism of Obamacare" (Syndicated columnist Michael Barone)

  • "Sebelius Has a List: Political thuggery from HHS" (A Wall Street Journal editorial)

  • "HHS Explicitly Threatens the Insurance Lobby" (From a TIME Magazine blog)

Health and Human Services Secretary
Kathleen Sebelius

These are all opinion pieces responding to the not-even-thinly-veiled threat contained in a letter sent Thursday by Health and Human Services Secretary Kathleen Sebelius to Karen Ignagni, president of America's Health Insurance Plans. The line that summarizes Sebelius approach to the insurance industry trade group is, "There will be zero tolerance for this type of misinformation and unjustified rate increases."

According to the Wall Street Journal, "Sebelius objects to claims by health insurers that they are raising premiums because of increased costs imposed by the Obamacare law passed by Congress last March," Barone writes. "She promises to issue regulations to require 'state or federal review of all potentially unreasonable rate increases' (which would presumably mean all rate increases)."

The ins and the outs of this far outweigh my expertise, but the major two points are as straightforward as they are threatening.

#1. Sebellius concedes that costs will rise as a consequence of many of law's "key protections" taking effect later this month "and does not deny that these impose additional costs on insurers," the Journal editorial points out. But she just announces in her letter that "any potential premium impact ... will be minimal." But even Sebellius concedes that not everyone [aka industry and academic "experts"] agrees.

Equally unnerving is Sebelius's insistence that "any premium increases will be moderated by out-of-pocket savings resulting from the law." Like White House chief spokesman David Axelrod. she throws out the "up to $1 billion in 2013." But these savings are based on the most optimistic--read highly implausible--projections.

#2. Once she warms up, Sebellius gets down to serious thuggery. Here's Barone's characterization:

"And there's a threat. 'We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014.' That's a significant date, the first year in which state insurance exchanges are slated to get a monopoly on the issuance of individual health insurance policies. Sebelius is threatening to put health insurers out of business in a substantial portion of the market if they state that Obamacare is boosting their costs."

The Journal editorial ends with a perfect summary. "This is nasty stuff and an obvious attempt to shift political blame for rising insurance costs before the election. It's also an early sign of life under ObamaCare, when all health-care decisions are political and the bureaucrats decide who can charge how much for a service or product."

Please send your thoughts and comments to daveandrusko@gmail.com.

Part Three
Part One

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