United Health Group

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Countdown: United Health Group's Stephen Hemsley

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Keith has the run down on United Health Group's Stephen Hemsley who's leading the charge against health care/insurance reform and who was recently sending employees armed with talking points to attend protests and town halls. First up, his campaign donations from OpenSecrets: United Health Group Contributions to Federal Candidates:

House
Total to Democrats: $138,700
Total to Republicans: $100,500

Senate
Total to Democrats: $71,500
Total to Republicans: $58,300

Next we have the lawsuit they settled just one week before President Obama took office. Health insurer accused of overcharging millions:

One of the nation’s largest health insurers has agreed to pay $50 million in a settlement announced today after being accused of overcharging millions of Americans for health care.

The New York attorney general’s office launched an investigation after receiving hundreds of complaints about Oxford Insurance and its parent company, UnitedHealth Group, which claims to rely on “independent research from across the health care industry” to determine reimbursement rates. In actuality though, it relies on Ingenix, a research firm owned by UnitedHealth Group.

New York Attorney General Andrew Cuomo says Ingenix has been manipulating the numbers so insurance companies pay less. In a just-released report, he contends that Americans have been “under-reimbursed to the tune of at least hundreds of millions of dollars.” Although UnitedHealth Group and Oxford Insurance were the only entities investigated, other major insurers use Ingenix, including Aetna, CIGNA and WellPoint/Empire BlueCross BlueShield.

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Oh joy. More wonderful news from the world of Max Baucus satistying the insurance companies with some payola for their campaign contributions. Is this what's going to be passed off for "reform"?

From Business Week:

This is good news for UnitedHealth, which benefits when patients pick up more of the tab. In late spring, the Finance Committee was assuming a 76% reimbursement rate on average, meaning consumers would be responsible for paying the remaining 24% of their medical bills, in addition to their insurance premiums. Stevens and his UnitedHealth colleagues urged a more industry-friendly ratio. Subsequently the committee reduced the reimbursement figure to 65%, suggesting a 35% contribution by consumers—more in line with what the big insurer wants. The final figures are still being debated.

Stevens says UnitedHealth and its corporate clients want to steer Congress toward benefit levels and cost sharing that can help control overall health spending: "We are providing another resource of actual modeling and advice on how proposals in the committees are structured and some potential unintended consequences of going down certain routes."

Perhaps more than any other insurer, UnitedHealth is poised to profit from health reform. Its decade-long series of acquisitions has made the company a coast-to-coast Leviathan enmeshed in the lives of 70 million Americans.

As Wendell Potter notes in the interview, this is "the last trick up their sleeves to try to control health care costs for themselves" and that they used to spend about 95 cents of every dollar on medical claims. They pay no where near that now and this would make their reimbursement rates even lower.

If this is what comes out of the Senate and called reform, doing nothing would truly be better than this.

You can read the entire article from Business Week here: The Health Insurers Have Already Won.