Insurance Industry Execs Privately Admit Public Option Will Not Bankrupt Them - Not Even Close

by: David Sirota

Thu Oct 01, 2009 at 12:00


I know that insurance industry executives are sending their lobbyists to Capitol Hill to claim that a public option will put the insurance industry out of business. And, IMHO, if that was true and the public option became a single-payer system, that would actually be great. But, as the latest edition of the American Medical Association's newsletter reports, the insurance industry in privatea dmits that's not true at all. In fact, insurance execs are saying exactly the opposite to each other in private:

Insurance executives during a September meeting assured investors that, no matter what happens in health system reform, their companies would continue to exist...

"I believe the private system is important because it brings innovation, it brings energy, it brings change, it brings ideas that are often used in the public sector system as well," said Richard Collins, senior vice president for underwriting, pricing and health care economics at UnitedHealthcare. "I think we can have both a public and private system."

So basically, while the insurance industry doesn't want a public option because they know it will cut into their astronomical profits, that same industry is also privately acknowledging that a public option will not come close to putting them out of business. It may reduce their profits from "astronomical" to "solid" but again, as the insurance industry admits, "we can have both a public and private system."

(h/t Yeahbutstill)

David Sirota :: Insurance Industry Execs Privately Admit Public Option Will Not Bankrupt Them - Not Even Close

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public option (4.00 / 2)
What might concern insurance execs is the possibility that a public option will turn out to be capable of providing decent healthcare at a MUCH lower cost than private insurance.  Once the public option is out there and operating, we may discover just how badly we've been getting gouged all along.

Pretty sure that Ken Lay was saying similar things (0.00 / 0)
to shareholders even as Enron was hitting the fan. Why should I trust these executives to present an honest assessment of the situation?

Besides, even if a PO is passed that is strong enough to challenge the for profit insurers, these folks have until 2013 to sell off their stock.

"It sounds wrong...
     ...but its right."


It's "a bonanza" for the industry, (0.00 / 0)
even with the few shards of Hacker's original proposal that passes for "a public option" these days.

http://www.latimes.com/news/na...


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