PNHP

UnitedHealth CEO reaps nearly $100 million from stock options

UnitedHealth CEO reaps nearly $100 million from stock options

UnitedHealth CEO reaps nearly $100 million from stock options

By David S. Hilzenrath
The Washington Post
April 16, 2010

The chief executive of UnitedHealth Group, one of the nation’s largest health insurers, reaped almost $100 million from exercising stock options last year, the company reported Thursday.

Stephen J. Hemsley exercised 4.9 million options in February 2009 at a gain of $98.6 million, the company said in a regulatory filing. The options were awarded almost a decade earlier.

According to measurement standards used by the Securities and Exchange Commission, Hemsley’s compensation for 2009 was a less stratospheric $8.9 million, up from $3.2 million in 2008. The 2009 total included a salary of $1.3 million, which was unchanged from the previous year, and a cash bonus of $2 million, up from $1.8 million the year before. It also included $5.6 million attributed to stock-related awards.

The compensation committee of UnitedHealth’s board believed that Hemsley’s 2009 compensation package “was appropriate to recognize Mr. Hemsley’s overall leadership in positioning the Company for long-term success in a very difficult overall economic environment,” UnitedHealth said in the report filed with the SEC Thursday.

The committee credited Hemsley with “enhancing the Company’s reputation, ethical culture and tone at the top.”

“Although Mr. Hemsley’s total compensation is below the median as compared to other CEOs in the Company’s peer groups, the Compensation Committee and Mr. Hemsley agree that it is sufficient to motivate and retain him,” the company reported.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/16/AR2010041601191.html

Comment:

By Don McCanne, MD

Although the compensation of UnitedHealth’s Stephen Hemsley may be enough to motivate and retain him, it is difficult to see how it affirms his role in enhancing an ethical culture at the top. The behavior for which he is being rewarded is precisely what should have been eliminated with the recently enacted health care financing legislation.

The ethical culture we should have would be one in which our health care dollars would be used to ensure that everyone receives the health care that they need. Instead, President Obama and Congress have ensured that Mr. Hemsley and his ilk will continue to be richly rewarded (for what?), while tens of millions are left without coverage, and the rest of us will have difficulties paying our premiums and our-of-pocket expenses.

UnitedHealth’s version of “ethical culture.” What BS!

Frontline Fronts for Corporations, Not the Public

By Margaret Flowers, M.D.
Counterpunch, Weekend Edition, April 16-18, 2010

It was with a sense of déjà vu that I watched the latest Frontline documentary about health care. “Obama’s Deal” endeavored to reveal the significant influence of health industry dollars on our political process; however, as in Frontline’s “Sick Around America,” the producers did a disservice by the failure to educate the public about the bigger picture of the health care situation in this nation and the range of possible solutions.

Curiously, just as it was in the health “debate,” single payer, improved Medicare for All, was also excluded from the film. The major point of the influence of health industry dollars on the reform process which should have been mentioned is that these dollars were spent in order to restrict the debate and protect industry profits. The lucrative status quo would have been threatened if single payer had been openly discussed because a publicly-financed national health program can provide high quality universal health care and control health care costs, something that a private insurance based system cannot accomplish.

After watching this film, viewers would have no idea that single payer exists or know that there is a strong movement for it. Considering that there have been attempts to push for a national health program for over 100 years in this nation and that, because of a strong grassroots movement, single payer legislation was nearly introduced on the floor of the House in November and was actually introduced on the floor of the Senate for the first time in this nation last December, the omission appears to be intentional.

Those of us in the single payer movement are accustomed to being censored by the corporate media. The reason for our exclusion is known: health insurance and pharmaceutical corporations advertise heavily on these airwaves and wield considerable power over the programming. This was described clearly by Fairness and Accuracy in Reporting’s August 2009 piece titled “Single-Payer & Interlocking Directorates: The corporate ties between insurers and media companies” by Kate Murphy.

The producers at Frontline carefully cut single payer out of the film. When the host, Mr. Kirk, interviewed me for “Obama’s Deal,” we spoke extensively of the single payer movement and my arrest with other single payer advocates in the Senate Finance Committee last May. However, our action in Senate Finance was then misidentified as “those on the left” who led a “counterattack” because of “liberal outrage” at being excluded. This occurred despite an email exchange following the release of the preview in which I specifically requested that the producers identify that we are a nonpartisan group fighting for single payer: a health reform model based on evidence of what is effective here and abroad and on health policy principles. This mischaracterization unfortunately mirrors the way in which the health industry has portrayed the single payer movement (verified by Wendell Potter, a former Cigna executive).

“Obama’s Deal” contained a segment on those who oppose health reform, but nowhere were single payer advocates given a chance to explain their proposal or motivations. Neither was it noted that the hatred and fear seen at the summer Town Halls and that factored in the election of Scott Brown were assisted by the stealth organizing efforts of ultra-conservative Dick Armey of FreedomWorks and others.

We have the resources in this nation to achieve the same high quality health outcomes and health security that exist in other advanced nations. One reason for our failure is the intentional misinformation and omission of information in corporate media. Our public media does a disservice by leaving out the full picture of our broken political process, its effect on the health and economic wellbeing of our people and the truth of what we can achieve.

Margaret Flowers, MD is a pediatrician who serves as the Congressional Fellow for Physicians for National Health Program.

http://www.counterpunch.org/flowers04162010.html

Health Insurers Hedge Bets With Fast Food Stock

Researchers Lambast Health Insurance Companies; Not All Convinced Investment Is Irresponsible

By TODD NEALE
MedPage Today Staff Writer
ABC News, April 16, 2010

Companies providing life and health insurance owned $1.9 billion worth of stock in the fast-food industry as of June 11, 2009, researchers reported online in the American Journal of Public Health.

The investments were in the five largest fast-food corporations — Jack in the Box, McDonald’s, Burger King, Yum! Brands (KFC, Taco Bell, Pizza Hut, and others), and Wendy’s/Arby’s, according to J. Wesley Boyd of Harvard Medical School and Cambridge Health Alliance in Massachusetts and colleagues.

“The insurance industry, ostensibly, appears to be concerned about people’s health and well-being,” Boyd said.

But, he said, “If the insurance industry is willing to invest in products known to be harmful and/or kill people then, prima facie, this is not an industry that actually cares about health and well-being.”

Although Boyd acknowledged that fast food can be consumed responsibly, he said the aggregate evidence points toward a negative effect on public health.

“We argue that insurers ought to be held to a higher standard of corporate responsibility,” he and his co-authors wrote in their paper.

All of the study authors are members — and two are co-founders — of Physicians for a National Health Program, a nonprofit organization advocating for universal, single-payer national health insurance.

“PNHP opposes for-profit control, and especially corporate control, of the health system and favors democratic control, public administration, and single-payer financing,” the organization’s mission statement reads.

Boyd said that the passage of healthcare reform makes the issue of owning stock in fast-food companies especially important.

“The health insurance industry is going to have a much bigger stake in providing healthcare, and what we’re doing in our paper is reminding people that [the industry’s] primary interests are in earning money and generating profit, not in insuring people’s health,” he said.

Pauline Rosenau, a professor of management, policy, and community health at the University of Texas School of Public Health, said the investment strategy of these insurance companies is not ethical.

“They are placing themselves in a situation of substantial conflict of interest — especially starting in 2014,” she said.

“Starting in 2014, insurers will have an even greater incentive to encourage their customers to pursue healthy food choices,” she continued. “However, this is only with respect to their own customers, not those insured by other companies. As long as insurers are largely private, for-profit entities, they are unlikely to identify with a public health orientation.”

To determine the extent to which insurance companies invested in the fast-food industry, Boyd and his colleagues analyzed shareholder data from the Icarus database, which contains information from Securities and Exchange Commission filings and reports from news agencies.

Their data were “vetted during the peer-review process by outside referees,” according to a spokesperson for the American Public Health Association, which publishes the American Journal of Public Health.

The $1.9 billion worth of stock in the five leading fast food companies represented 2.2 percent of the total market capitalization of those companies on June 11, 2009.

Most of the investments ($1.2 billion) were in McDonald’s, followed by Yum! Brands ($404.2 million), Burger King ($165.5 million), Jack in the Box ($120 million), and Wendy’s/Arby’s ($15 million).

The insurer investing the most in fast food — $422.2 million — was Northwestern Mutual, which offers life, disability, and long-term care insurance.

Next highest at $406.1 million was ING, a Dutch investment company selling life and disability insurance.

Massachusetts Mutual, which offers life, disability, and long-term care insurance, and Prudential Financial, which sells life insurance and long-term disability coverage, ranked third and fourth at $366.5 million and $355.5 million, respectively.

At first glance, it would appear that there is an inconsistency with insurance companies that have an interest in protecting health investing in the fast-food industry, although Boyd said that it makes sense financially.

“They’re hedging their bets,” he said. “First of all, they’re making money by directly investing in fast food, and, secondly, they’re making money by often charging higher premiums to people who’ve eaten a little too much fast food and are obese, have diabetes, cardiovascular disease, high blood pressure, etc.”

He said that he would like to see insurance companies sell their stakes in the fast-food companies.

“But if they don’t divest, at a minimum they could use their position as owners of fast food to insist on higher quality products, lower calories, [and] better information about how many calories are in different foods,” he said.

Dr. David Orentlicher of the William S. and Christine S. Hall Center for Law and Health at Indiana University agreed that insurers should be held to a higher standard of corporate responsibility.

“That said,” he said, “it is very difficult in a capitalist society to expect people or companies to act against their self-interest. If we want people to act responsibly, we have to create financial incentives for them to do so.”

Theodore Marmor, a professor emeritus of public policy and management at Yale School of Management, did not agree that health and life insurers should be held to a different standard than other companies.

“I think this is a foolish approach to improving the health of the public,” Marmor said.

“It would be hard to find any corporation that did not have some effect on the public’s health. Why are insurers to be held to a higher standard? We have more important worries about health insurers than improving their stock portfolios — e.g., their behavior as insurers.”

Northwestern Mutual and ING did not respond to a request for comment.

A spokesperson for Massachusetts Mutual said the reported investments were “absolutely incorrect.” He said that as of Dec. 31, the company owned about $1.4 million worth of stock in fast-food-related companies, which was “less than one-hundredth of one percent of cash and total invested assets of $86.6 billion.”

A Prudential Financial spokesperson said, “We can’t discuss specific investments within Prudential portfolios or those managed for third parties. That said, we have a fiduciary duty to manage assets in a way that provides the opportunity for consistently strong investment performance to our individual and institutional clients, while managing risk and investing responsibly.”

A spokesperson for America’s Health Insurance Plans (AHIP), a trade group for health insurers, said he could not comment on the investments of individual companies.

“Our industry is strongly committed to health and wellness,” he said. “Health plans have pioneered programs to promote prevention and encourage people to live healthier lifestyles.”

Copyright © 2010 ABC News Internet Ventures

http://abcnews.go.com/Health/w_DietAndFitness/health-insurance-companies-invest-billions-fast-food-stock/story?id=10392603&page=1

UnitedHealth CEO reaps nearly $100 million from stock options

UnitedHealth CEO reaps nearly $100 million from stock options

By David S. Hilzenrath
The Washington Post
April 16, 2010
The chief executive of UnitedHealth Group, one of the nation’s largest health insurers, reaped almost $100 million from exercising stock options last year, the company reported Thursday.
Stephen J. Hemsley exercised 4.9 million options in February 2009 at a gain of $98.6 million, the company said in a regulatory filing. The options were awarded almost a decade earlier.
According to measurement standards used by the Securities and Exchange Commission, Hemsley’s compensation for 2009 was a less stratospheric $8.9 million, up from $3.2 million in 2008. The 2009 total included a salary of $1.3 million, which was unchanged from the previous year, and a cash bonus of $2 million, up from $1.8 million the year before. It also included $5.6 million attributed to stock-related awards.
The compensation committee of UnitedHealth’s board believed that Hemsley’s 2009 compensation package “was appropriate to recognize Mr. Hemsley’s overall leadership in positioning the Company for long-term success in a very difficult overall economic environment,” UnitedHealth said in the report filed with the SEC Thursday.
The committee credited Hemsley with “enhancing the Company’s reputation, ethical culture and tone at the top.”
“Although Mr. Hemsley’s total compensation is below the median as compared to other CEOs in the Company’s peer groups, the Compensation Committee and Mr. Hemsley agree that it is sufficient to motivate and retain him,” the company reported.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/16/AR2010041601191.html

Although the compensation of UnitedHealth’s Stephen Hemsley may be enough to motivate and retain him, it is difficult to see how it affirms his role in enhancing an ethical culture at the top. The behavior for which he is being rewarded is precisely what should have been eliminated with the recently enacted health care financing legislation.
The ethical culture we should have would be one in which our health care dollars would be used to ensure that everyone receives the health care that they need. Instead, President Obama and Congress have ensured that Mr. Hemsley and his ilk will continue to be richly rewarded (for what?), while tens of millions are left without coverage, and the rest of us will have difficulties paying our premiums and our-of-pocket expenses.
UnitedHealth’s version of “ethical culture.” What BS!

Health, life insurers hold $1.88 billion in fast-food stocks: AJPH article

Harvard researchers say insurers put profits over health

EMBARGOED until:
April 15, 2010, 5 p.m. Eastern time    

Contact:
Arun Mohan, M.D., M.B.A.
J. Wesley Boyd, M.D., Ph.D.
Steffie Woolhandler, M.D., M.P.H.
Mark Almberg, PNHP, (312) 782-6006, mark@pnhp.org

Just weeks after the passage of a health bill that will dramatically increase the number of Americans covered by private health insurers, Harvard researchers have detailed the extent to which life and health insurance companies are major investors in the fast-food industry.

Although fast food can be consumed responsibly, research has shown that fast-food consumption is linked to obesity and cardiovascular disease, two leading causes of death, and contributes to the poor health of children. The evidence is so compelling that as part of the new law more than 200,000 fast-food and other chain restaurants will be required to include calorie counts on their menus, including their drive-through menus.

A new article on insurance company holdings, published online in today’s [Thursday, April 15] American Journal of Public Health, shows that U.S., Canadian and European-based insurance firms hold at least $1.88 billion of investments in fast-food companies.

“These data raise questions about the opening of vast new markets for private insurers at public expense, as is poised to happen throughout the United States as a result of the recent health care overhaul,” says lead author Dr. Arun Mohan.

Among the largest owners of fast-food stock are U.S.-based Prudential Financial, Northwestern Mutual and Massachusetts Mutual Life Insurance Company, and European-based ING.

U.S.-based Northwestern Mutual and Massachusetts Mutual Life Insurance Company both offer life insurance as well as disability and long-term care insurance. Northwestern Mutual owns $422.2 million of fast-food stock, with $318.1 million of McDonald’s. Mass Mutual owns $366.5 million of fast-food stock, including $267.2 in McDonald’s.

Holland-based ING, an investment firm that also offers life and disability insurance, has total fast-food holdings of $406.1 million, including $12.3 million in Jack in the Box, $311 million in McDonald’s, and $82.1 million in Yum! Brands (owner of Pizza Hut, KFC and Taco Bell) stock.

New Jersey-based Prudential Financial Inc. sells life insurance and long-term disability coverage. With total fast-food holdings of $355.5 million, Prudential Financial owns $197.2 of stock in McDonald’s and also has significant stakes in Burger King, Jack-in-the-Box, and Yum! Brands.

The researchers also itemize the fast-food holdings of London-based Prudential Plc, U.K.-based Standard Life, U.S.-based New York Life, Scotland-based Guardian Life, Canada-based Manulife and Canada-based Sun Life. (See table; all data current as of June 11, 2009.)

“Our data illustrate the extent to which the insurance industry seeks to turn a profit above all else,” says Dr. Wesley Boyd, senior author of the study. “Safeguarding people’s health and well-being take a back seat to making money.”

Mohan, Boyd and their co-authors, Drs. Danny McCormick, Steffie Woolhandler and David Himmelstein, all at the Cambridge Health Alliance and Harvard Medical School, culled their data from Icarus, a proprietary database of industrial, banking and insurance companies. Icarus draws upon Securities and Exchange Commission filings and news reports from providers like Dow Jones and Reuters. In addition, the authors obtained market capitalization data from Yahoo! Finance.

The authors write, “The health bill just enacted in the Washington will likely expand the reach of the insurance industry. Canada and Britain are also considering further privatization of health insurance. Our article highlights the tension between profit maximization and the public good these countries face in expanding the role of private health insurers. If insurers are to play a greater part in the health care delivery system they ought to be held to a higher standard of corporate responsibility.”

Several of these same researchers, all of whom are affiliated with Physicians for a National Health Program, have previously published data about the extent to which the insurance industry is invested in tobacco. They say that because private, for-profit insurers have repeatedly put their own financial gain over the public’s health, readers in the United States, Canada and Europe should be wary about insurance firms’ participation in care.

Insurance industry holdings in fast-food companies (in millions of U.S. dollars) as of June 11, 2009.

Insurance
Company		 Jack in
the Box		 McDonald’s Burger King Yum! Brands Wendy’s/
Arby’s Group		 Total
Prudential plc       80.5  
80.5
Prudential Financial 34.1 197.2 43.7 80.5  
355.5
Mass Mutual 23.1 267.2 58.8 17.4  
366.5
New York Life 2.4        
2.4
Northwestern Mutual 40.9 318.1   63.2  
422.2
Sun Life       26.8   26.8
Standard Life   63.0      
63.0
ING 12.3 311.7   82.1   406.1
Manulife   89.1   53.7 3.3
146.1
Guardian Life 7.2       9.5
16.7
MetLife         2.2 2.2
Total 120.0 1,183.3 165.5 404.2 15.0 1,888.0

“Life and Health Insurance Industry Investments in Fast Food,” Arun V. Mohan, M.D., M.B.A.; Steffie Woolhandler, M.D., M.P.H.; David U. Himmelstein, M.D.; and J. Wesley Boyd, M.D., Ph.D. American Journal of Public Health, April 15, 2010.

Physicians for a National Health Program (www.pnhp.org) is an organization of 17,000 doctors who support single-payer national health insurance. To speak with a physician/spokesperson in your area, visit www.pnhp.org/stateactions or call (312) 782-6006.

Ohio's lesson for Medicare Part D

State, patients, doctors like new Medicaid drug plan

By Catherine Candisky
The Columbus Dispatch
April 14, 2009

When the state took back control of Medicaid’s prescription-drug program last year, there was a lot of talk about how the move would save millions.

It has.

But it’s also making it easier for patients to get the medications they need.

An analysis by the Ohio Coalition for Patient Rights found that Medicaid patients have improved access to “quality and appropriate” treatments and medications.

On Feb. 1, the state created a single, statewide drug formulary for all Medicaid programs, replacing eight different managed-care pharmacy plans.

At the time, state officials said the so-called carve-out would save money because the state is eligible for savings programs such as drug-company rebates.

The Coalition for Patient Rights’ analysis compared access to 122 drugs for health conditions including asthma, heart disease, diabetes and mental illness. It found that the state formulary, in many instances, placed fewer restrictions on patients’ ability to obtain medications prescribed by their doctor.

Such restrictions include the need for prior authorization from the insurer before a drug can be obtained and requiring patients to try different drugs before medications prescribed by their doctors can be made available.

Physicians also are applauding the change.

“We supported the idea of the carve-out because each managed-care company had its own formulary, and from an administrative perspective, it was a nightmare,” said Ann Spicer of the Ohio Academy of Family Physicians.

“It’s much simpler dealing with a single formulary, and the number of prior authorizations have been drastically reduced.”

http://www.dispatch.com/live/content/local_news/stories/2010/04/14/state-patients-doctors-like-new-medicaid-drug-plan.html?sid=101

Comment:

By Don McCanne, MD

Enactment of Medicare Part D – the Medicare drug program – was a gift to the pharmaceutical industry and the private intermediaries managing the drug benefits. The government was even explicitly prohibited from negotiating drug prices in a competing plan. Many of us at the time objected to the rejection of the broader concept of having the government as the exclusive administrator of the Part D pharmaceutical benefit. We could have had greater savings and less third party intrusion if we had adopted a public program instead.

The story from Ohio is a vindication for those of us who still insist that the Medicare Part D program should be revamped into a public program that would better serve patients, without wasting funds on the excesses of the pharmaceutical firms and the pharmacy benefit managers.

Think of how this compares with the recent health care financing reform process. The debate ended up being over a competing public insurance option, after totally rejecting any consideration of a single publicly administered insurance program for everyone. Eventually even the public option was rejected, just as a competing public Part D option had been rejected. The Republicans established the flawed policy principles with Part D, and the Democrats have now followed the same path.

The Ohio experience demonstrates not only that Medicare drug benefits should be administered by the government, but also, by extrapolation, that our entire health care financing infrastructure should be converted into an improved Medicare for everyone. We can still do that.

Ohio’s lesson for Medicare Part D

State, patients, doctors like new Medicaid drug plan

By Catherine Candisky
The Columbus Dispatch
April 14, 2009

When the state took back control of Medicaid’s prescription-drug program last year, there was a lot of talk about how the move would save millions.

It has.

But it’s also making it easier for patients to get the medications they need.

An analysis by the Ohio Coalition for Patient Rights found that Medicaid patients have improved access to “quality and appropriate” treatments and medications.

On Feb. 1, the state created a single, statewide drug formulary for all Medicaid programs, replacing eight different managed-care pharmacy plans.

At the time, state officials said the so-called carve-out would save money because the state is eligible for savings programs such as drug-company rebates.

The Coalition for Patient Rights’ analysis compared access to 122 drugs for health conditions including asthma, heart disease, diabetes and mental illness. It found that the state formulary, in many instances, placed fewer restrictions on patients’ ability to obtain medications prescribed by their doctor.

Such restrictions include the need for prior authorization from the insurer before a drug can be obtained and requiring patients to try different drugs before medications prescribed by their doctors can be made available.

Physicians also are applauding the change.

“We supported the idea of the carve-out because each managed-care company had its own formulary, and from an administrative perspective, it was a nightmare,” said Ann Spicer of the Ohio Academy of Family Physicians.

“It’s much simpler dealing with a single formulary, and the number of prior authorizations have been drastically reduced.”

http://www.dispatch.com/live/content/local_news/stories/2010/04/14/state-patients-doctors-like-new-medicaid-drug-plan.html?sid=101

Comment:

By Don McCanne, MD

Enactment of Medicare Part D – the Medicare drug program – was a gift to the pharmaceutical industry and the private intermediaries managing the drug benefits. The government was even explicitly prohibited from negotiating drug prices in a competing plan. Many of us at the time objected to the rejection of the broader concept of having the government as the exclusive administrator of the Part D pharmaceutical benefit. We could have had greater savings and less third party intrusion if we had adopted a public program instead.

The story from Ohio is a vindication for those of us who still insist that the Medicare Part D program should be revamped into a public program that would better serve patients, without wasting funds on the excesses of the pharmaceutical firms and the pharmacy benefit managers.

Think of how this compares with the recent health care financing reform process. The debate ended up being over a competing public insurance option, after totally rejecting any consideration of a single publicly administered insurance program for everyone. Eventually even the public option was rejected, just as a competing public Part D option had been rejected. The Republicans established the flawed policy principles with Part D, and the Democrats have now followed the same path.

The Ohio experience demonstrates not only that Medicare drug benefits should be administered by the government, but also, by extrapolation, that our entire health care financing infrastructure should be converted into an improved Medicare for everyone. We can still do that.

No Time to 'Wait and See' on Health Law

Dr. Quentin Young
The Huffington Post, April 14, 2010

Building the Single-Payer Movement

Having just gone through a grueling, frequently raucous debate on health reform, capped by the narrowest of votes to pass the Obama administration’s bill, many activists are now tempted to adopt a “wait and see” attitude on how the new law plays out.

A few others are putting their emphasis on helping the administration implement the law, in some cases enthusiastically trumpeting their strange-bedfellow partnership with the profit-hungry health insurers and Big Pharma.

Still others – the hostile, noisy Know-Nothings associated with the Republicans and Tea Party crowd – continue to rail against President Obama’s “socialized medicine” plan (a misnomer if there ever was one), and pledge to obstruct or overturn it. Conservatives vow to make political hay out of the law in the run-up to the midterm elections.

Wall Street, on the other hand, is very comfortable with the new legislation. Mutual fund analysts now say it’s increasingly clear that the law is beneficial for health industry stocks, particularly for pharmaceutical and medical equipment companies, because there are no “onerous cost controls” in the law. And health insurance company stocks continue to a yearlong trend upward, and the industry’s CEO salaries continue to be astronomical.

After all, the health insurers wrote the bill. Sen. Max Baucus was recently caught on tape heaping effusive praise on his aide Elizabeth Fowler for her pivotal role in crafting the legislation. Fowler is a former vice president of WellPoint, the giant health insurer.

Baucus himself, a key actor in this bad movie, was surrounded by health industry lobbyists from the very beginning, and has received over $2.8 million in campaign contributions from these toxic sources over the past few years. That he earned his payoff was demonstrated when Karen Ignagni, the president of America’s Health Insurance Plans, congratulated him (during this week’s episode of “Frontline”) on his handling of the single-payer nonviolent disruption of his Senate Finance Committee hearing after single-payer advocates like Dr. Margaret Flowers were excluded from giving testimony.

Supporters of single-payer national health insurance face several challenges, the chief of which is how to transform the various efforts of single-payer Medicare-for-All activists into a movement for political and legislative success. Among the key tasks are these:

* Educating candidates for political office (and current officeholders) from all political parties about the merits of the single-payer proposal, and offering to advise them on health policy matters.

* Ensuring the reintroduction and largest possible legislative sponsorship for national single-payer bills like Rep. John Conyers’ H.R. 676 and Sen. Bernie Sanders’ S. 703.

* Supporting efforts (including a change in the new law) to permit states to experiment with their own, independent single-payer models of reform right away.

* Defending Medicare from harmful budget cuts and educating Medicare beneficiaries about their self-interest in improving and expanding the program to cover everyone, i.e. embracing the slogan, “Everybody in, nobody out.”

* Continuing our educational work about the merits – nay, the necessity – of adopting a single-payer system. The sooner we initiate a truly universal, egalitarian, humane and efficient system, the sooner the American people will enjoy the high-quality health care our nation and our health professionals are capable of providing.

A major burden the enactment of the new law imposes on single-payer advocates is its timeline. Specifically, major elements in the legislation do not kick in for two, four or even eight years’ time.

But “wait and see” is not an option for us. The legislation just passed is completely inadequate to the task at hand.

Under the new law, the suffering and financial hardship imposed on Americans by our private-insurance-based system will largely continue unabated for four more years, and only then be subject to very modest regulation. (Loopholes in the law abound.) Over 50 million people will remain uninsured each year until 2014, which translates into 50,000 preventable deaths annually. A comparable number will remain underinsured, with many vulnerable to medical bankruptcy when serious illness strikes, even after 2014.

Even if the new law works as planned, at least 23 million people will remain uninsured at 2019. So “universal health care” remains a dream deferred.

That spells human misery. This week a new Harvard-based study showed that people with migraine who lack health insurance, or who are on Medicaid, disproportionately suffer from their condition because they can’t get access to the standard medications they need to reduce their pain and other symptoms. And that’s just one example of the unnecessary suffering that lies in wait.

Meanwhile costs, including for health insurance premiums, will continue to escalate.

The unrelenting advocacy of single payer by Physicians for a National Health Program also stems from a careful study of repeatedly unsuccessful experiments with state-based reforms based on private insurance, including the Massachusetts plan (upon which the new law is modeled). The evidence is clear: incremental reforms of this type – based on the private-insurance model – will not work. They invariably succumb to skyrocketing costs.

Single-payer Medicare for All is the reform that’s required. Just like almost all other major areas of progress in American life, fundamental health reform requires a movement based on equity, justice, prudence and science that is free of market greed. That movement today is single payer.

http://www.huffingtonpost.com/dr-quentin-young/no-time-to-wait-and-see-o_b_537958.html

No Time to ‘Wait and See’ on Health Law

Dr. Quentin Young
The Huffington Post, April 14, 2010

Building the Single-Payer Movement

Having just gone through a grueling, frequently raucous debate on health reform, capped by the narrowest of votes to pass the Obama administration’s bill, many activists are now tempted to adopt a “wait and see” attitude on how the new law plays out.

A few others are putting their emphasis on helping the administration implement the law, in some cases enthusiastically trumpeting their strange-bedfellow partnership with the profit-hungry health insurers and Big Pharma.

Still others – the hostile, noisy Know-Nothings associated with the Republicans and Tea Party crowd – continue to rail against President Obama’s “socialized medicine” plan (a misnomer if there ever was one), and pledge to obstruct or overturn it. Conservatives vow to make political hay out of the law in the run-up to the midterm elections.

Wall Street, on the other hand, is very comfortable with the new legislation. Mutual fund analysts now say it’s increasingly clear that the law is beneficial for health industry stocks, particularly for pharmaceutical and medical equipment companies, because there are no “onerous cost controls” in the law. And health insurance company stocks continue to a yearlong trend upward, and the industry’s CEO salaries continue to be astronomical.

After all, the health insurers wrote the bill. Sen. Max Baucus was recently caught on tape heaping effusive praise on his aide Elizabeth Fowler for her pivotal role in crafting the legislation. Fowler is a former vice president of WellPoint, the giant health insurer.

Baucus himself, a key actor in this bad movie, was surrounded by health industry lobbyists from the very beginning, and has received over $2.8 million in campaign contributions from these toxic sources over the past few years. That he earned his payoff was demonstrated when Karen Ignagni, the president of America’s Health Insurance Plans, congratulated him (during this week’s episode of “Frontline”) on his handling of the single-payer nonviolent disruption of his Senate Finance Committee hearing after single-payer advocates like Dr. Margaret Flowers were excluded from giving testimony.

Supporters of single-payer national health insurance face several challenges, the chief of which is how to transform the various efforts of single-payer Medicare-for-All activists into a movement for political and legislative success. Among the key tasks are these:

* Educating candidates for political office (and current officeholders) from all political parties about the merits of the single-payer proposal, and offering to advise them on health policy matters.

* Ensuring the reintroduction and largest possible legislative sponsorship for national single-payer bills like Rep. John Conyers’ H.R. 676 and Sen. Bernie Sanders’ S. 703.

* Supporting efforts (including a change in the new law) to permit states to experiment with their own, independent single-payer models of reform right away.

* Defending Medicare from harmful budget cuts and educating Medicare beneficiaries about their self-interest in improving and expanding the program to cover everyone, i.e. embracing the slogan, “Everybody in, nobody out.”

* Continuing our educational work about the merits – nay, the necessity – of adopting a single-payer system. The sooner we initiate a truly universal, egalitarian, humane and efficient system, the sooner the American people will enjoy the high-quality health care our nation and our health professionals are capable of providing.

A major burden the enactment of the new law imposes on single-payer advocates is its timeline. Specifically, major elements in the legislation do not kick in for two, four or even eight years’ time.

But “wait and see” is not an option for us. The legislation just passed is completely inadequate to the task at hand.

Under the new law, the suffering and financial hardship imposed on Americans by our private-insurance-based system will largely continue unabated for four more years, and only then be subject to very modest regulation. (Loopholes in the law abound.) Over 50 million people will remain uninsured each year until 2014, which translates into 50,000 preventable deaths annually. A comparable number will remain underinsured, with many vulnerable to medical bankruptcy when serious illness strikes, even after 2014.

Even if the new law works as planned, at least 23 million people will remain uninsured at 2019. So “universal health care” remains a dream deferred.

That spells human misery. This week a new Harvard-based study showed that people with migraine who lack health insurance, or who are on Medicaid, disproportionately suffer from their condition because they can’t get access to the standard medications they need to reduce their pain and other symptoms. And that’s just one example of the unnecessary suffering that lies in wait.

Meanwhile costs, including for health insurance premiums, will continue to escalate.

The unrelenting advocacy of single payer by Physicians for a National Health Program also stems from a careful study of repeatedly unsuccessful experiments with state-based reforms based on private insurance, including the Massachusetts plan (upon which the new law is modeled). The evidence is clear: incremental reforms of this type – based on the private-insurance model – will not work. They invariably succumb to skyrocketing costs.

Single-payer Medicare for All is the reform that’s required. Just like almost all other major areas of progress in American life, fundamental health reform requires a movement based on equity, justice, prudence and science that is free of market greed. That movement today is single payer.

http://www.huffingtonpost.com/dr-quentin-young/no-time-to-wait-and-see-o_b_537958.html

Ohio's lesson for Medicare Part D

State, patients, doctors like new Medicaid drug plan

By Catherine Candisky
The Columbus Dispatch
April 14, 2009

When the state took back control of Medicaid’s prescription-drug program last year, there was a lot of talk about how the move would save millions.
It has.
But it’s also making it easier for patients to get the medications they need.
An analysis by the Ohio Coalition for Patient Rights found that Medicaid patients have improved access to “quality and appropriate” treatments and medications.
On Feb. 1, the state created a single, statewide drug formulary for all Medicaid programs, replacing eight different managed-care pharmacy plans.
At the time, state officials said the so-called carve-out would save money because the state is eligible for savings programs such as drug-company rebates.
The Coalition for Patient Rights’ analysis compared access to 122 drugs for health conditions including asthma, heart disease, diabetes and mental illness. It found that the state formulary, in many instances, placed fewer restrictions on patients’ ability to obtain medications prescribed by their doctor.
Such restrictions include the need for prior authorization from the insurer before a drug can be obtained and requiring patients to try different drugs before medications prescribed by their doctors can be made available.
Physicians also are applauding the change.
“We supported the idea of the carve-out because each managed-care company had its own formulary, and from an administrative perspective, it was a nightmare,” said Ann Spicer of the Ohio Academy of Family Physicians.
“It’s much simpler dealing with a single formulary, and the number of prior authorizations have been drastically reduced.”
http://www.dispatch.com/live/content/local_news/stories/2010/04/14/state-patients-doctors-like-new-medicaid-drug-plan.html?sid=101

Enactment of Medicare Part D – the Medicare drug program – was a gift to the pharmaceutical industry and the private intermediaries managing the drug benefits. The government was even explicitly prohibited from negotiating drug prices in a competing plan. Many of us at the time objected to the rejection of the broader concept of having the government as the exclusive administrator of the Part D pharmaceutical benefit. We could have had greater savings and less third party intrusion if we had adopted a public program instead.
The story from Ohio is a vindication for those of us who still insist that the Medicare Part D program should be revamped into a public program that would better serve patients, without wasting funds on the excesses of the pharmaceutical firms and the pharmacy benefit managers.
Think of how this compares with the recent health care financing reform process. The debate ended up being over a competing public insurance option, after totally rejecting any consideration of a single publicly administered insurance program for everyone. Eventually even the public option was rejected, just as a competing public Part D option had been rejected. The Republicans established the flawed policy principles with Part D, and the Democrats have now followed the same path.
The Ohio experience demonstrates not only that Medicare drug benefits should be administered by the government, but also, by extrapolation, that our entire health care financing infrastructure should be converted into an improved Medicare for everyone. We can still do that.

Ohio’s lesson for Medicare Part D

State, patients, doctors like new Medicaid drug plan

By Catherine Candisky
The Columbus Dispatch
April 14, 2009

When the state took back control of Medicaid’s prescription-drug program last year, there was a lot of talk about how the move would save millions.

It has.

But it’s also making it easier for patients to get the medications they need.

An analysis by the Ohio Coalition for Patient Rights found that Medicaid patients have improved access to “quality and appropriate” treatments and medications.

On Feb. 1, the state created a single, statewide drug formulary for all Medicaid programs, replacing eight different managed-care pharmacy plans.

At the time, state officials said the so-called carve-out would save money because the state is eligible for savings programs such as drug-company rebates.

The Coalition for Patient Rights’ analysis compared access to 122 drugs for health conditions including asthma, heart disease, diabetes and mental illness. It found that the state formulary, in many instances, placed fewer restrictions on patients’ ability to obtain medications prescribed by their doctor.

Such restrictions include the need for prior authorization from the insurer before a drug can be obtained and requiring patients to try different drugs before medications prescribed by their doctors can be made available.

Physicians also are applauding the change.

“We supported the idea of the carve-out because each managed-care company had its own formulary, and from an administrative perspective, it was a nightmare,” said Ann Spicer of the Ohio Academy of Family Physicians.

“It’s much simpler dealing with a single formulary, and the number of prior authorizations have been drastically reduced.”

http://www.dispatch.com/live/content/local_news/stories/2010/04/14/state-patients-doctors-like-new-medicaid-drug-plan.html?sid=101

Enactment of Medicare Part D – the Medicare drug program – was a gift to the pharmaceutical industry and the private intermediaries managing the drug benefits. The government was even explicitly prohibited from negotiating drug prices in a competing plan. Many of us at the time objected to the rejection of the broader concept of having the government as the exclusive administrator of the Part D pharmaceutical benefit. We could have had greater savings and less third party intrusion if we had adopted a public program instead.

The story from Ohio is a vindication for those of us who still insist that the Medicare Part D program should be revamped into a public program that would better serve patients, without wasting funds on the excesses of the pharmaceutical firms and the pharmacy benefit managers.

Think of how this compares with the recent health care financing reform process. The debate ended up being over a competing public insurance option, after totally rejecting any consideration of a single publicly administered insurance program for everyone. Eventually even the public option was rejected, just as a competing public Part D option had been rejected. The Republicans established the flawed policy principles with Part D, and the Democrats have now followed the same path.

The Ohio experience demonstrates not only that Medicare drug benefits should be administered by the government, but also, by extrapolation, that our entire health care financing infrastructure should be converted into an improved Medicare for everyone. We can still do that.

UnitedHealth usurping role of primary care provider

UnitedHealth to Pay Walgreens, YMCA, for Progress on Diabetes

By Katherine Hobson
The Wall Street Journal
Health Blog

UnitedHealth Group and Walgreens say they’re teaming up with the YMCA on a program that will reimburse pharmacists and lifestyle coaches to help insured patients prevent and control diabetes.

The program, which will be announced Wednesday at the CDC Diabetes Conference in Kansas City, Mo., will have two parts, says Tom Beauregard, executive vice president of UnitedHealth and executive director of the UnitedHealth Center for Health Reform and Modernization. The prevention arm will use UnitedHealth claims data and other demographic information to flag people at risk of developing diabetes and invite them to a free, 16-session exercise and nutrition class at a local YMCA. They’ll have monthly follow-up after the class is over, and instructors will be paid bonuses if participants meet certain modest weight-loss goals.

The control part of the program will be administered with Walgreens. Participants who already have diabetes will receive a 45-minute assessment and then other health-care coaching sessions, covering both medical and lifestyle management, says Colin Watts, chief innovation officer at Walgreens.

(Beauregard) said UnitedHealth would pay the YMCA around $300 for someone who completed the program and it could rise to $500 for someone who met weight-loss goals. Neither he nor Watts would disclose the reimbursements to Walgreens, but Watts says it includes a strong pay-for-performance element.

http://blogs.wsj.com/health/2010/04/13/unitedhealth-to-pay-walgreens-ymca-for-progress-on-diabetes/

Comment: 

By Don McCanne, MD

One of the most important goals of health care reform was to reinforce the primary care infrastructure to provide for everyone a medical home that would ensure access to the highest quality care reasonably attainable.

That would have been easy through a universal publicly administered health care financing program such as an improved Medicare that included everyone. Instead reform was based on an expansion of a chronically underfunded welfare program – Medicaid – plus an infusion of taxpayer funds into an expansion of the private insurance industry.

Think about it. UnitedHealth is using its proprietary data bank to glean information about primary care patients, and then using that information to pull the patients out of their primary care homes and referring them on to the YMCA and Walgreens, effectively fragmenting their health care management. If the programs are appropriate, the decision to use them should be made in the primary care home, and not usurped by middlemen money managers.

With the need to demonstrate a medical loss ratio of 80 percent (individual and small groups) to 85 percent (large groups), we can anticipate that UnitedHealth, WellPoint and the other for-profit insurers will make every effort they can to establish other similar programs outside of the mainstream of health care that would satisfy their medical loss ratio requirements. Of course these programs will draw funds away from primary care professionals, hospitals and other health care providers.

We do need a much stronger primary care infrastructure, but we need to get UnitedHealth and the others out of the way so that we can do it right. A publicly-owned financing system would place patients first, ensuring that they would have the coordinated care that they need.