Via Raw Story, some news that really isn't such a big deal. Third-party administrators are already a cash cow for the insurance industry, but my guess is that this contract will have a lot of built-in cost controls:

A little-noticed tidbit in Saturday's Washington Post is sure to raise eyebrows among liberal supporters of a gorvernment-run healthcare plan: the plan is likely to be administered by a private insurance company, the very companies that progressive activists are trying to unseat.

The public-option debate is frustrating some Democrats, who have come to believe that a government-run plan is neither as radical as its conservative critics have portrayed, nor as important as its liberal supporters contend. Any public plan is likely to have a relatively narrow scope, as it would be offered only to people who don't have access to coverage through an employer.

The public option would effectively be just another insurance plan offered on the open market. It would likely be administered by a private insurance provider, charging premiums and copayments like any other policy. In an early estimate of the House bill, the Congressional Budget Office forecast that fewer than 12 million people would buy insurance through the government plan.

The problem with insurance companies isn't the third-party administrators - they simply administer claims decisions on the basis of what the client pays for. (Although their administration fees are so often heavily padded, and the feds will have to watch them closely.) This is commonly done with so-called "self-insured" plans.

This is one of the reasons why it won't happen overnight. Someone's going to have to come up with the oversight structure.

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From Face the Nation, Russ Feingold has to remind Bob Schieffer that the "public option" is not a "liberal" position on health care reform. It's a compromise. What liberals want is single-payer.

SCHIEFFER: Let’s talk a little bit about health care. Where do you think health care reform stands in the Senate right now? I know you want the public option, the government-run insurance program, like Medicare for older people. The majority leader now seems inclined to include that in the bill that he’s going to bring to the floor. Do you think that has any chance at this point of passage? Because for a while now, people have been saying the votes are just not there in the Senate.

FEINGOLD: Well, I want to give my majority leader, Harry Reid credit for seriously considering putting this public option in there. I think it’s very important. It’s a sign of strong leadership on his part that he has the guts to do that. Because the American people are for some alternative that will create some competition for the abuses of the insurance industry. So I believe that there’s a good chance it will be in the bill that comes before us in the Senate. I think we have some chance of prevailing in the Senate on it and if we don't I think there's a chance it will come through the House. So I’m becoming increasingly optomistic that we will have a health care bill that will not frighten the American people, that they'll be able to see as reasonable -- it's not a complete government take over health care, but will provide an option for those that don’t have health care or are unhappy with their health care to do something else and I'm frankly getting excited that we may have some momentum for something very positive.

SCHIEFFER: As I understand it, the liberals want the, want the public option. The conservatives don’t. Do you think there’s a possibility that this thing may just end up in a log jam, that liberals won’t vote for this plan without the public option and the conserves won’t vote for it if it includes the public option, and so we wind up with nothing instead of something?

FEINGOLD: Well, that could happen, but the truth is, what liberals want is a single-payer system. Medicare for everybody. So the idea of a public option is really a very moderate idea. Within the current context of a continuing private system, it’s a tough one to swallow for many people who want a single-payer system. So this is a very reasonable approach that I would think people who are both conservative and liberal and in the middle would say, let’s try this; let’s see if this can control and bring under some reason of measure that the insurance companies could finally improve their act.

That is exactly what -- what this is. It is not a liberal or left-wing concept at all.

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Ah, the audacity of playing it safe! Obama clearly doesn't understand how positively this will affect people's lives, or he wouldn't be so lukewarm. The public option is polling well everywhere - including those conservative districts.

In fact, just about the only group not strongly supportive are the big contributors:

President Barack Obama is actively discouraging Senate Democrats in their effort to include a public insurance option with a state opt-out clause as part of health care reform. In its place, say multiple Democratic sources, Obama has indicated a preference for an alternative policy, favored by the insurance industry, which would see a public plan "triggered" into effect in the future by a failure of the industry to meet certain benchmarks.

The administration retreat runs counter to the letter and the spirit of Obama's presidential campaign. The man who ran on the "Audacity of Hope" has now taken a more conservative stand than Senate Majority Leader Harry Reid (D-Nev.), leaving progressives with a mix of confusion and outrage. Democratic leaders on Capitol Hill have battled conservatives in their own party in an effort to get the 60 votes needed to overcome a filibuster. Now tantalizingly close, they are calling for Obama to step up.

"The leadership understands that pushing for a public option is a somewhat risky strategy, but we may be within striking distance. A signal from the president could be enough to put us over the top," said one Senate Democratic leadership aide. Such pleading is exceedingly rare on Capitol Hill and comes only after Senate leaders exhausted every effort to encourage Obama to engage.

"Everybody knows we're close enough that these guys could be rolled. They just don't want to do it because it makes the politics harder," said a senior Democratic source, saying that Obama is worried about the political fate of Blue Dogs and conservative Senate Democrats if the bill isn't seen as bipartisan. "These last couple folks, they could get them if Obama leaned on them."

But with fundamental reform of the health care system in plain sight for the first time in half a century, the president appears to be siding with those who see the Senate and its entrenched culture as too resistant to change. Administration officials say that Obama's preference for the trigger, which is backed by Maine Republican Sen. Olympia Snowe, is founded in a fear that Reid's public option couldn't get the 60 votes needed to overcome a GOP filibuster. More specifically, aides fear that a handful of conservative Democrats will not support a bill unless it has at least one Republican member's support.

Getting the public option in the Senate bill makes it that much more likely that we'll be able to get it through conference, and not through the reconciliation process.

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On This Week with George Stephanopoulos, a discussion of the political machinations around the public option:

On the Roundtable, Bloomberg’s Al Hunt says that a health reform package can’t pass without the support of Sen. Olympia Snowe. She provides cover for moderates like Sens. Ben Nelson and Mary Landrieu and may pull over a couple of Republican votes.

HUNT: "Olympia Snowe, I think, thinks privately that in the end the trigger will be the compromise everyone has to rally around and give a little bit of face-saving to liberals and she and a few other republicans can go for it."

They really don't get it, do they? They're so out of touch with reality that they don't understand the kind of serious harm they're doing to the Democratic brand with this bait-and-switch routine on the public option.

A trigger? A frackin' trigger? How much longer do we have to wait to get relief from the predatory practices of the insurance industry? And how much more obvious does it have to be that the priority in the Senate is incumbency protection?

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WASHINGTON — Under immense pressure from the liberal wing of his caucus, the Senate majority leader, Harry Reid, has told colleagues that he may include a government-run health insurance plan in a health care bill he will soon take to the Senate floor, Democratic senators said Thursday.

Mr. Reid’s latest thinking seemed to reflect a calculated gamble that the 60 members of his caucus could be persuaded to vote for the public plan, if it included some mechanism for states to opt out.

His decision was shaped, in part, by opinion polls showing public support for a government insurance plan, which would compete with private insurers. Speaker Nancy Pelosi said again Thursday that the House would definitely include a public option in its version of the legislation.

At a meeting at the White House on Thursday, Mr. Reid informed President Obama of his inclination to add the public option to the bill, but did not specifically ask the president to endorse that approach, a Democratic aide said. Mr. Obama asked questions, but did not express a preference at the meeting, which was called on short notice by the White House.

Just six weeks ago the public option appeared to be dying, under fierce attack by the insurance industry. A clear majority of Democratic senators favor a government-run plan. But public statements by other senators indicate that the proposal does not have the 60 votes ordinarily needed to secure Senate approval for hotly contested legislation.

Democratic champions of the public plan, like Senator Charles E. Schumer of New York, have urged Mr. Reid to take an aggressive posture, by putting the public plan in the bill and forcing opponents to try to strip it out.

“There is a growing sense that we need to lead on this issue and not wait for it to be offered on the Senate floor,” a senior Democratic aide said. “The idea is that it’s better to show some fight.”

Chris Bowers says the undecideds in the House need to hear from us ASAP:

I am receiving new information tonight that the House DOES NOT have 218 "solid' yes votes for health care reform with a Medicare +5% public option. Representative John Larson's claim earlier today that the House had the votes appear to have included at least 12, and as many as 15, Representatives who are "lean yes" votes.

Further, I am told that if the leadership does not confirm 218 "solid" yes votes by the end of the 9:30 a.m. Democratic caucus meeting tomorrow morning, they will probably include the negotiated rate public option in the bill that is sent to the floor, not the Medicare +5% public option. At the very latest, we have until 2 p.m. to get the votes.

We need another 12-15 solid votes. Based on information combined from multiple sources, here is the best chart I could put together on short notice:

Medicare +5% Target Chart

It is sorted into "lean yes," "undecided" and "lean no." I have also included the leadership.

If your member of Congress is on the list, call and leave a message tonight. We have to get through before 9:30 a.m., if possible.

If your member of Congress is not on the list, but you are represented by a Democrat, call your member of Congress and urge them to support the Medicare +5% option at the caucus meeting tomorrow morning.

If you are represented by a Republican, call either a member of the Democratic leadership or a Representative on the list who is from your state.

Call and leave a message. The campaign could really go either way depending on what happens in the next 14-18 hours.

Nice to see Obama taking them on like this. I just wish he talked like this more often:

WASHINGTON — President Obama mounted a frontal assault on the insurance industry on Saturday, accusing it of airing “deceptive and dishonest ads” to derail his health care legislation and threatening to strip the industry of its longstanding exemption from federal anti-trust laws.

In unusually harsh terms, Mr. Obama cast insurance companies as obstacles to change interested only in preserving their own “profits and bonuses” and willing to “bend the truth or break it” to stop his drive to remake the nation’s health care system. The president used his weekly radio and Internet address to push back against industry assertions that legislation will drive up premiums.

The transcript is much more blunt:

A new report for the Business Roundtable – a non-partisan group that represents the CEOs of major companies – found that without significant reform, health care costs for these employers and their employees will well more than double again over the next decade. The cost per person for health insurance will rise by almost $18,000. That’s a huge amount of money. That’s going to mean lower salaries and higher unemployment, lower profits and higher rolls of uninsured. It is no exaggeration to say, that unless we act, these costs will devastate the US economy.

This is the unsustainable path we’re on, and it’s the path the insurers want to keep us on. In fact, the insurance industry is rolling out the big guns and breaking open their massive war chest – to marshal their forces for one last fight to save the status quo. They’re filling the airwaves with deceptive and dishonest ads. They’re flooding Capitol Hill with lobbyists and campaign contributions. And they’re funding studies designed to mislead the American people.

Of course, like clockwork, we’ve seen folks on cable television who know better, waving these industry-funded studies in the air. We’ve seen industry insiders – and their apologists – citing these studies as proof of claims that just aren’t true. They’ll claim that premiums will go up under reform; but they know that the non-partisan Congressional Budget Office found that reforms will lower premiums in a new insurance exchange while offering consumer protections that will limit out-of-pocket costs and prevent discrimination based on pre-existing conditions. They’ll claim that you’ll have to pay more out of pocket; but they know that this is based on a study that willfully ignores whole sections of the bill, including tax credits and cost savings that will greatly benefit middle class families. Even the authors of one of these studies have now admitted publicly that the insurance companies actually asked them to do an incomplete job.

This is just plain crazy. Why should one woman in the opposing party have so much power over our futures, just because Obama has a "bipartisan" fetish? This is about offering a protective cover to Blue Dogs; I get that. But man, it's galling that everything gets pulled down to the lowest common denominator by one woman who's been enjoying taxpayer-funded healthcare coverage for a very long time:

WASHINGTON — As the White House and Congressional leaders turned in earnest on Wednesday to working out big differences in the five health care bills, perhaps no issue loomed as a greater obstacle than whether to establish a government-run competitor to the insurance industry.

One day after the Senate Finance Committee approved a measure without a “public option,” the question on Capitol Hill was how President Obama could reconcile the deep divisions within his party on the issue. All eyes were on Senator Olympia J. Snowe, the Maine Republican whose call for a “trigger” that would establish a government plan as a fallback is one of the leading compromise ideas.

No "deep divisions" out here with the overwhelming majority of Democrats, or anyone else for that matter. It's only the Democratic Blue Dogs who have such "dainty" concerns. Oddly enough, the more those members got in contributions from the death-for-profit healthcare industry, the stronger those "concerns" are! Hmm.

Two senior administration officials, speaking on condition of anonymity, said the White House looked favorably on the Snowe plan. But liberal Democrats were maneuvering against it Wednesday, arguing that Ms. Snowe, the lone Republican to vote in favor of the Finance Committee’s bill, was gaining undue influence over the talks.

“It’s one vote, she won’t make the commitment on the final product, and she says she’s got to have the trigger,” said Representative Raúl M. Grijalva, Democrat of Arizona, who is leading an effort in the House to round up votes for a government plan akin to Medicare. “I think the administration has put her in the driver’s seat; it’s very disconcerting.”

Of the many difficult decisions remaining — including how to pay for an overhaul and how many people will be left uninsured — few carry as much political weight for the president as the public option. The plan, which would be for people who do not get health care through their employers, has become a proxy for a larger debate over where Mr. Obama is taking the country.

“What’s going on here is not simply health care and the public option,” said Kenneth M. Duberstein, a chief of staff in the Reagan White House. “In light of the auto bailout, the bank bailout, the stimulus package, the public option fight is a surrogate for how much government is too much.”

I wish all those Members who have such concerns would turn back the government-funded healthcare largesse they enjoy and turn instead to the free market. Perhaps I wouldn't despise them quite so much.

With Democrats split, an array of compromises are being floated — including the nonprofit cooperatives in the Finance Committee bill and the latest idea to capture some Democrats’ fancy, leaving the public option to the states. But economists say few would fulfill Mr. Obama’s stated goal of injecting “choice and competition” into the marketplace.

Mr. Obama’s health care adviser, Nancy-Ann DeParle, said she was convinced that Democrats could “find convergence.” She and several other officials, including Rahm Emanuel, the chief of staff, and Peter R. Orszag, the budget director, met Wednesday with Senator Harry Reid of Nevada, the Democratic leader, to discuss merging the Senate’s bills.

Aides say Mr. Obama has reviewed the alternatives to the public option but has not settled on which, if any, he prefers. And some Democrats say a backlash against insurers is creating renewed interest in a public plan. But in private conversations with Ms. Snowe, Mr. Obama has brought up her idea for a trigger that would create a government-run plan in states where at least 5 percent of residents lacked access to affordable care. One senior White House official called the idea “very reasonable.”

Must. Go. Hit. Head. On. Wall. Now.

Via the Plumline. You know, this wouldn't be difficult to fix. A phone interview with a staffer noting all major current issues and asking about any financial connection, and a release you sign to that effect before going on the air. In fact, it's so easy to do that I'd guess they just don't want to know.

I mean, why is a known GOP hack treated as an "expert," anyway?

Of course, if they fixed this, they'd have no one left to interview but neutral academic types and bloggers, but it would make for much more educational TV! Greg Sargent:

CNN has acknowledged in a statement to me that a high-profile Republican commentator who frequently discusses health care on the air is also the media buyer for one of the ad campaigns bankrolled by America’s Health Insurance Plans, the major industry trade group currently waging war against the White House and Dem reform proposals.

CNN tells me his ties to the industry will be disclosed in the future.

The CNN contributor, well-known GOP consultant Alex Castellanos, is best known for producing the racially-charged “Hands” ad, has repeatedly appeared on the network attacking Dem health care plans and the public option, which is strongly opposed by AHIP.

Castellanos’s consulting firm, National Media, also recently placed over $1 million of TV advertising for AHIP, according to info obtained by Media Matters. AHIP’s most recent $1 million ad buy attacks the health care plan as a threat to Medicare.

And in other CNN-related news, some real progress:

Some good news today-- we're raised enough to move forward with our TV ad buy with our partners at Media Matters and DropDobbs.com as part of the effort to hold CNN accountable for airing 260 hours of anti-immigrant hate (aka Lou Dobbs Tonight) a year.

We just sent this email out to our advocates, below. We look forward to continuing to work with our partners to keep the pressure on CNN.

Any help with blog coverage or social networking outreach would be much appreciated! I just tweeted this:

Spread the Word! RT @americasvoice: Success: Dobbs Ad to Air on CNN http://bit.ly/33FoZl #ri4a #CNN #p2 #immigration

The Blue Cross Blue Shield Association has released their own version of the AHIP propaganda report.

By releasing a transparently hyperbolic and self-serving study on the effects of health reform, the insurance industry appears to have blundered in a big way. They discredited themselves in the eyes of the media elite, alienated potentially sympathetic members of Congress, and rallied Democrats around a common foe.

So what are they doing now? They seem to be trying the same stunt again, with a brand new study. It's not as deceptive as the last one. But it's not going to win any points for intellectual honesty, either.

This time the study's sponsor is the Blue Cross Blue Shield Association (BCBSA), rather than America's Health Insurance Programs. The hired gun accounting firm is Oliver Wyman, instead of PriceWaterhouseCoopers. But the message is the same as before: Pass reform, as currently envisioned, and insurance premiums will go way up...read on

Cohn thinks this report is slightly better than the last one, but they both end the same. If we implement health care reform they promise to raise your rates. Why isn't the media reporting this? They are threatening American lives and families and this should not be tolerated.

Digby also catches this and is not a happy camper about it either.

Can someone please explain to me why this isn't a blatant threat? Nice little health care system you have here. Be a shame if anything happened to it.

In a normal country, this kind of corporate threat, in which they openly say that unless they get their way, they will raise premiums sky high and make everyone suffer, would be considered criminal. After all, premium pricing is entirely in their hands --- and that's why we are in the terrible situation we are in today.

This is f*&king criminal. I'm sitting here and having a nice dream. I see Harry Reid acting like a real majority leader telling Congress that this is unacceptable. And then he fades to black and I'm transported to the House of Representatives. They are spending the day rebuking these reports for the phonies that they are and they pass legislation that makes it a criminal offense with a maximum of up to three years in jail for any lobby-bastards who put out bogus reports that are circulated to intimidate Americans. Now this is a fantasy I know, but they do spend hours of time making dedications of parks to the rich and famous people and in my fantasy they spend a couple of hours and threaten all groups that actively work to undermine legislation with lies.
And Alan Grayson leads the charge.

By the way, PricewaterhouseCoopers took so much heat for their frakked up AHIP report that they issued this statement.

PricewaterhouseCoopers, the authors of AHIP's report, put out a statement last night that basically said, "Hey, we weren't paid to evaluate the effects of the entire bill, but rather a small slice of it." The statement only seems to reinforce critics' view that the report is skewed precisely because it doesn't take into account the totality of reform. PwC's report estimates that insurance premiums will rise faster under the proposed reforms than under the current system.

The last, and key, line from the statement: "If other provisions in health care reform are successful in lowering costs over the long term, those improvements would offset some of the impacts we have estimated.”

In other words, PwC is saying if reform's cost containment measures work, their estimate could be wrong.

So they are admitting that AHIP were liars. Nice.

I can't help wondering: Do you suppose Obama actually believed the insurance industry was on his side? I can't tell if they're really surprised or just pretending. But I don't think anyone here was all that shocked by these developments:

As the Senate Finance Committee on Tuesday approved a 10-year, $829 billion bill to remake the health-care system, Obama's top advisers and the insurers moved into a more intense stage of conflict.

"The insurance industry has decided to lead the charge against health reform, and everyone recognizes their motives: profits," said White House deputy communications director Dan Pfeiffer. "We are going to make sure they can't sink this effort at the last minute."

Pfeiffer castigated the industry for releasing a report Monday that concluded that the finance panel's bill would increase costs for consumers. "They made themselves a very good foil," he said.

The insurers, however, showed no sign of being chastened. America's Health Insurance Plans, an industry trade group, opened a fresh line of attack with a multistate advertising campaign warning that senior citizens enrolled in private Medicare plans could lose benefits under the legislation.

"Is it right to ask 10 million seniors on Medicare Advantage for more than their fair share?" the television spot asks. "Congress is proposing $100 billion in cuts to Medicare Advantage. The nonpartisan Congressional Budget Office says many seniors will see cuts in benefits."

The Finance Committee's bill would reduce spending on the plans AHIP cites by $113 billion over the next decade, which could mean reduced insurer profits, higher co-payments by beneficiaries or fewer extra benefits such as eyeglasses and gym memberships.

"We want to begin to build an awareness of the potential implications to seniors," said AHIP President Karen Ignagni.

She declined to say how much money would be spent on the commercials airing in six states, but one advertising analyst said the industry has enough cash to pose a serious threat. "They can spend whatever they feel they need to influence this," said Evan Tracey, president of the Campaign Media Analysis Group. "Seniors are a very important group politically."

The insurance sector and health maintenance organizations spent more than $116 million on lobbying in the first six months of this year, according to an analysis by the nonpartisan Center for Responsive Politics.

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The Villagers on the Chris Matthews panel all agree on a couple of points. The dirty f-ing hippies on the left have no right to demand anything of President Obama and were silly to think he’d live up to his campaign promise to reform our health care system. And two, any bill, whether it’s terrible or not that the President signs will be “transformational” and “historic”.

It doesn’t matter to them if it’s a crap sandwich which ends up being nothing but a giveaway to the insurance industry. What matters is that it passes. Andrea Mitchell seems positively giddy at the idea that it will be “criticized from all sides”. That’s a good thing Andrea?

While I agree with them on Afghanistan and that the President did not promise to get us out of there, President Obama did promise some real reform on health care and he also talked about cleaning the lobbyists and their influence out of Washington. This is hardly what’s going on now with Max Baucus and his lobbyists writing the health care bill in the Senate Finance Committee.

And Clarence Page conflates going between single-payer and the public option to the compromises being talked about now. Note to Clarence Page. Going from the public option to a trigger—or no public option at all—is not the same as hedging between single payer and the public option. One is an already bad compromise that might lead to reform. The other is just loading up the pockets of the insurance industry by forcing everyone into the system with no price controls.

Transcript below the fold.

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So in a bit of attempted last-minute blackmail, AHIP pulls a suspicious-looking rabbit from their hat. They're worried about families' costs? All the more reason to approve a strong public option!

After months of collaboration on President Obama's attempt to overhaul the nation's health-care system, the insurance industry plans to strike out against the effort on Monday with a report warning that the typical family premium in 2019 could cost $4,000 more than projected.

The critique, coming one day before a critical Senate committee vote on the legislation, sparked a sharp response from the Obama administration. It also signaled an end to the fragile detente between two central players in this year's health-care reform drama.

Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.

Administration officials, who spent much of the spring and summer wooing the insurers, questioned the timing and authorship of the report, which was paid for by America's Health Insurance Plans (AHIP), an industry trade group.

"Those guys specialize in tax shelters," said Nancy-Ann DeParle, director of the White House Office of Health Reform. "Clearly this is not their area of expertise."

Yes, not only is it not their area of expertise, the brand carries with them a history of conflicts of interest and even fraud. As recently as 2007, PwC paid $225 million to settle a class-action lawsuit brought by shareholders of Tyco International Ltd. over a multibillion-dollar accounting fraud.

It seems to me that AHIP is very, very unhappy about the relatively minor changes in the Baucus bill that give the insurance industry slightly less of a stranglehold on the process via the insurance mandate. I mean, how dare we include a hardship exemption?

Now let's watch Democrats spend all day defending the crappy Baucus bill as if it were the tablets Moses brought down from the mountaintop.

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[H/t to Dave E.]

You've gotta wonder how much longer the Fox News brass will be able to tolerate Shepard Smith. He keeps stepping on and debunking his fellow Fox anchors' favorite talking points.

Yesterday, in demolishing Wyoming Republican Sen. John Barasso, he took a wrecking ball to the No. 1 Fox talking point of recent months -- that the public option in health-care reform equals a "government takeover." Here's what Smith said:

SMITH: It’s not a government takeover, Senator! That’s not fair and we both know it. It’s not a government takeover because what it would be is a government option if you have insurance now and you like it you can keep it. … That’s not a government takeover if we’re being fair is it Senator?

Then he launched into an ardent defense of the public option

SMITH: Over the last 10 years health care costs in American have skyrocketed. Regular folks cannot afford it, so they tax the system by not getting preventive medicine. And we all end up paying for it. As the costs have gone up, the insurance industry's profits, on average, have gone up 350 percent. And it's the insurance companies which have paid and which have contributed to senators and congressmen on both sides of the aisle to the point where now we can't get what all concerned on Capitol Hill all seem to [believe] and more than 60 percent of Americans say they support, a public option.

Every vote against the public option is a vote for the insurance companies.

And for good measure, he points out what a travesty it would be for Congress to pass a reform measure with mandates but without a public option:

SMITH: What more than 60 percent of Americans say they support is a public option. This has been an enormous win for the health care industry. That is an unquestioned fact, but I wonder, what happens to the American people when we come out with legislation now which requires everyone to have health care insurance -- or many more people -- but does not give a public option? Therefore millions more people will have to buy insurance from the very corporations that are overcharging us, and whose profits have gone up 350 percent in the last ten years. It seems like we the people are the ones getting the shaft here.

One can only imagine Sean Hannity and Glenn Beck watching this from the fetal position.

As a Californian, one of the enduring takeaways of the Schwarzenegger era is just how much latitude he is given on the national level as some kind of transformative post-partisan leader, when those same reporters know that California is crumbling into dust under, and in many cases because of, his leadership. We witnessed this again today as national media types heaped praise on the Governor issuing a letter about the Obama health care reform plan:

“As Governor, I have made significant efforts to advance health reform in California. As the Obama Administration was launching the current debate on health care reform, I hosted a bipartisan forum in our state because I believe in the vital importance of this issue, and that it should be addressed through bipartisan cooperation.

“Our principal goals, slowing the growth in costs, enhancing the quality of care delivered, improving the lives of individuals, and helping to ensure a strong economic recovery, are the same goals that the president is trying to achieve. I appreciate his partnership with the states and encourage our colleagues on both sides of the political aisle at the national level to move forward and accomplish these vital goals for the American people.”

I love the phrase "significant efforts," by the way. Others might call them "failed efforts," but YMMV.

But this "praise" for health care reform is just a piece of paper. One would think that the national media would seek to know the actions of the Governor on health care - one would be wrong, but one would still think that. And it would take about 10 seconds of Googling to figure out that the Governor has vetoed key elements of the legislation working through Congress. Last year he vetoed AB1945, which would have banned rescission, the insurance industry practice of dumping sick customers for technical violations on their applications like typos the moment that they try to use their policies for treatment. He vetoed SB840, the universal health care bill, on multiple occasions in the past. He vetoed SB1440, which would have mandated that insurance companies spend 85% of premiums on medical care. He vetoed SB973, which would have created a public insurance option by linking local and regional measures. He vetoed AB2, expanding the state's high-risk pool for people with pre-existing conditions.

He basically has vetoed many of the same provisions to be found in the current health care bill. And he is threatening to veto every bill on his desk this year, including another bill to ban rescissions so that customers who have paid insurance premiums for years aren't left to die when they want to use their policies. Anthony Wright notes some of the other bills:

* AB 119 (Jones): GENDER RATING, to prohibit insurers from charging different premium rates based on gender.

* AB 2 (De La Torre): INDEPENDENT REVIEW, to create an independent review process when an insurer wishes to rescind a consumer's health policy, create new standards and requirements for medical underwriting, and requires state review before plan approval. Also raises the standard in existing law so that coverage can only be rescinded if a consumer willfully misrepresents his health history.

* AB 98 (De La Torre): MATERNITY COVERAGE, to require all individual insurance policies to cover maternity services.

* AB 244 (Beall): MENTAL HEALTH PARITY, to require most health plans to provide coverage for all diagnosable mental illnesses.

Dan Walters, one of the few pundits left in the state, calls these bills "nothing of cosmic importance". Well sure, he's not going to have a kid, and women are charged more than men by insurance companies anyway! To an entitled white man with a good-paying job, he doesn't have to worry about losing his policy or not getting comprehensive medical coverage. But to a woman who can't afford to lose her job to have a baby, or someone with a mental health problem who can't get relief for his suffering, or someone with an individual policy living constantly in fear that his or her insurance will get revoked precisely when they need it, these are issues of "cosmic importance." Anyone saying otherwise is ignorant.

And yet the Governor will have no problem holding these bills, and these people, hostage. His buddies at the Chamber of Commerce probably don't want him to sign them at all. So he writes a pretty letter supporting health care reform, while denying the very same measures to his own constituents. And national media types call him a "bold leader."

You want to know what you can do? Here are some ideas from an interview yesterday on Democracy Now!:

SHARIF ABDEL KOUDDOUS: Kevin, let’s start with you. What exactly are you launching today, this campaign of civil disobedience?

KEVIN ZEESE: Well, it’s three groups that are launching it. ProsperityAgenda.us, which is trying to democratize the economy in the way that Michael Moore is starting to get a debate going about, we see healthcare as critical to people getting control over their lives. And a single-payer system is the only way to do it. Healthcare-NOW!, which is the leading grassroots advocacy group for single payer that is joining us. And the Center for the Working Poor in Los Angeles works on issues of low-wage workers.

And the basic thrust of this is, is to highlight the denial of healthcare by the insurance industry. Doctors and patients reach an agreement on what they want, what kind of healthcare is appropriate, and too often healthcare insurance companies say, “No, we’re not going to pay for that.” In fact, there was a report put out by one of the really excellent organizations in this effort, California Nurses Association, that showed that 20 percent of the time when people have agreed on healthcare, the insurance companies say no. Twenty percent of the time. One company was 40 percent of the time. So this is a serious problem. In fact, Michael Moore, when he did Sicko, had 25,000 people write him and say that they were being denied healthcare. So the goal is to say, “Get these people healthcare.”

We’re going to go—and if people who are denied healthcare want to have the community support them, they should contact us at mobilizeforhealthcare.org, and we will bring people together to go to the insurance company and say to the insurance company, “Provide this person with healthcare.” These are life and death decisions, and their profits should not be coming before patients.

But the overlying message of this is that the healthcare—health insurance industry should not be seen as a solution to our healthcare crisis. They are the cancer of the healthcare crisis. We need a single-payer system. And the band-aid, putting over the cancer, that President Obama and the Democrats are pursuing in Washington is not going to make the situation better. In fact, it’s going to make it worse, because they’re going to empower these insurance companies with hundreds of billions of dollars in annual new revenue by having working people, who can’t even afford to put food on the table in too many kinds, forced to buy private insurance that’s overpriced and a pretty lousy product. It’s amazing that we’re seeing the government forcing people to buy insurance, when the insurance industry is the cause of so much of the problems that we’re facing here.

So, people who want to get involved in this, we’re looking for people to sign up to protest, mobilizeforhealthcare.org, and come there and sign up, whether you’re a patient, whether you’re—want to get involved in this. We’ve had hundreds of people sign up already, and we want hundreds and hundreds more, because this is going to be a national campaign.

SHARIF ABDEL KOUDDOUS: So you’re calling for people to stage sit-ins at the offices of private insurers?

KEVIN ZEESE: Well, the first thing we want people to do is to go to the insurance and make a demand: stop the denials. If they refuse a demand, we say we’re staying until you make that—make that promise, and that we’ll stay—I mean, sit-in, and stay until that demand is met. If it’s not met, we stay. We’re not seeking to get arrested, but if that’s what happens, then the insurance companies have to choose: are you going to arrest people for your profits, or are you going to provide healthcare, like you’re supposed to be doing?

How can they say with a straight face, while we’re about to give them hundreds of billions of dollars in tax revenue and working people’s income, how can they say with a straight face they’re going to deny healthcare? It’s going to demonstrate that these corporations are not the solution.
Single payer is the solution. And so, please, get involved, mobilizeforhealthcare.org. Get involved, get active. We need the people to rise up and say, no, we don’t want this forced insurance company solution that the Obama administration and the Democrats are pushing down the people’s throats.