I've been calling the for-profit health insurance industry "government sanctioned extortion" for a few years now. It wasn't until I read Time magazine's cover story this week, "Bitter Pill: Why Medical Bills are Killing Us" that I realized that the whole medical industrial complex is complicit in the crime! And some of the worst offenders are the so-called "non-profit" hospitals that are raking in billions of dollars in profits and their obscenely paid executives.

I decided to call on my favorite expert on the ills of our health "care" system to talk about it. Wendell Potter, who rose to prominence when his conscience got the better of him and he quit his high-paying job as the VP of Communications for insurance giant Aetna, testified in front of Congress and wrote the sad but true book, Deadly Spin: An Insurance Company Insider Speaks Out on How Corporate PR is Killing Health Care and Deceiving Americans, joined me on my show the other day to discuss the article and how little has changed.

In the article, we learn about the "chargemaster" or the master pricelist from which each hospital compiles the exorbitant bills.

No hospital’s chargemaster prices are consistent with those of any other hospital, nor do they seem to be based on anything objective — like cost — that any hospital executive I spoke with was able to explain. “They were set in cement a long time ago and just keep going up almost automatically,” says one hospital chief financial officer with a shrug.
At Stamford Hospital I got the first of many brush-offs when I asked about the chargemaster rates on Janice S.’s bill. “Those are not our real rates,” protested hospital spokesman Orstad when I asked him to make hospital CEO Brian Grissler available to explain Janice S.’s bill, in particular the blood-test charges. “It’s a list we use internally in certain cases, but most people never pay those prices. I doubt that Brian [Grissler] has even seen the list in years. So I’m not sure why you care.”

Orstad also refused to comment on any of the specifics in Janice S.’s bill, including the seemingly inflated charges for all the lab work. “I’ve told you I don’t think a bill like this is relevant,” he explained. “Very few people actually pay those rates.”

Very few people? Actually, it's only people who pay those rates - the uninsured and under-insured. The big insurance companies certainly don't. They pay negotiated, much lower rates. Although some negotiate down from the chargemaster rate, most prefer to negotiate up from the Medicare rate.

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Yeah, this is pretty much what I thought, but it's still depressing to actually hear it from Wendell Potter. The insurance companies are just salivating at the thought of getting their hands on all those additional premium dollars - they just want to make sure there are as few consumer protections as possible so they get to keep most of the money instead of spending it on pesky things like patient care:

Wendell Potter spent 20 years as top executive with CIGNA. He wrote “Deadly Spin: An Insurance Company Insider Speaks Out on How Corporate PR Is Killing Health Care and Deceiving Americans”. Now that the U.S. Supreme Court has the Patient Protection And Affordable Care Act - with a decision expected in June - the insurance industry whistleblower says the industry’s real goal is not to repeal the law, but to defeat Democrats in November.

Wendell Potter: “They don’t want the bill - quite honestly - to be overturned or repealed. They want the bill to go forward with the individual mandate intact. But what they want to do is to get people to vote out the Democrats who voted for the bill so that they’ll have more friends in Congress to strip out the consumer protections.”

Potter says for-profit health insurers are killing health health care and their unsustainable system will implode within a few years. That’s the view he got from the CIGNA corporate ladder.

"The higher up that ladder I climbed the more I could see what these companies do to meet Wall Street’s profit expectations. And most of the big insurance companies are now for-profit companies. They cancel people’s health insurance when they get sick. They refuse to sell coverage to people who need coverage. They price policies so high that small businesses can no longer afford care. They are spending less and less of our premium dollars on our health care and more and more to reward shareholders and senior executives.”

A surprise to no one who cringed through some of the nasty and personal smears against Michael Moore as "Sicko" was released, reformed health care executive Wendell Potter admitted that there was a systematic plan and campaign to discredit both the filmmaker and documentary.

Yesterday, on the TV and radio show "Democracy Now" hosted by Amy Goodman, the former Vice President of CIGNA, one of the nation's largest health insurance companies, revealed that CIGNA met with the other big health insurers to hatch a plan to "push" yours truly "off a cliff."

The interview contains new revelations about just how frightened the health industry was that "Sicko" might ignite a public wave of support for "socialized medicine." So the large health insurance companies came together over a common cause: Stop the American people from going to see "Sicko" -- and the way to do that was to cause some form of harm to me (either personally, professionally or...physically?).

The insinuation that the campaign could include physical damage just so Americans wouldn't learn that Canadian and UK health care systems aren't nearly as bad as they've been demogogued (and don't get me started on Norway) is more than a little frightening. But certainly, as Moore admits, the campaign worked.

The interview goes on as Potter reveals how his front group was able to get its talking points and smears into stories in the New York Times and CNN. It is a chilling look inside how easy it is to manipulate our mainstream media -- and just how worried the health insurance companies were that the American people might demand a true universal health care system.

In particular, Potter talks about how they may have succeeded in influencing CNN to run a factually untrue story about "Sicko" by its reporter, Sanjay Gupta (which led to my infamous encounter with Wolf Blitzer and later, an apology from CNN for getting their facts wrong).

Potter believes his work to defame "Sicko" succeeded, as the film didn't end up posting "Fahrenheit 9/11" grosses. To be clear, "Sicko" went on to become the 3rd largest grossing documentary of all time at that point. And as the release of "Sicko" in June of 2007 was the first time since the defeat of Hillary Clinton's healthcare bill in 1994 that the issue of health insurance was brought to the forefront of the national media, I believe it helped to reignite the issue during the 2008 election year by exposing millions of Americans to the truth about the health insurance industry. More than one person on Capitol Hill will admit that "Sicko" was a big help in rallying public support for the compromise bill that eventually passed earlier this year. But I agree, their smear campaign was effective and did create the dent they were hoping for -- single payer and the public option never even made it into the real discussion on the floor of Congress.

And forgive me for being a broken record on this, but here is example #3,208,296,209 of how the traditional media not only failed us, but conspired in a disinformation campaign with corporate interests. Pundits like Ted Koppel and Jon Stewart want to talk about how both MSNBC and Fox News are equally toxic to the national dialogue, but they've missed the boat, big time. The media has been failing us for much, much longer and in far more destructive ways than whether Olbermann or Beck show themselves to be hyper-ideological.

Potter's interview with Amy Goodman is available in full here.

Wendell Potter states the obvious in his new book, "Deadly Spin" -- namely, that insurance companies really, really want the individual mandate. They just want those pesky consumer protections gone:

It is ironic, of course, that the requirement to purchase insurance has become the centerpiece of Republicans’ condemnation of the new law and their court challenge of its constitutionality. Insurers have no reason to worry, however, because they fare very well when the Republicans are in charge. Their profits soared—as did the number of Americans who are uninsured and underinsured—during the Bush years and Republican control of Congress.

The real reason insurers want the GOP leading Congress again is not to repeal “Obamacare,” but to try to gut some of the provisions of the law that protect consumers from the abuses of the industry, such as refusing to cover kids with preexisting conditions, canceling policyholders’ coverage when they get sick, and setting annual and lifetime limits on how much they’ll pay for medical care. Insurers also hate the provision that requires them to spend at least 80 percent of premium revenues on medical care, as well as the one that calls for eliminating the billions of dollars that the government has been overpaying them for years to participate in private Medicare plans. (Be on the lookout for a death panel–like fearmongering campaign to scare people into thinking, erroneously, that Granny and Pawpaw will lose their government health care if Congress doesn’t restore those “cuts” to Medicare.)

Insurers are not waiting for all their new members of Congress to be sworn in to get what they want. They and their big-business allies are already pressuring the Obama administration to waive or delay the implementation of provisions they don’t like, all the while working behind the scenes not only to protect the individual mandate but to have the government enforce it with much greater gusto. The one thing the industry didn’t like about the mandate provision was that the penalties for not buying their overpriced products won’t inflict nearly enough financial pain.

Retiring Sen. Judd Gregg (R-N.H.), who once had been a part of the repeal-and-replace brigade, provoked the wrath of conservative pundits shortly before the midterm elections when he said, in a moment of unguarded candor, that repealing the law was not realistic. Instead, he said, the GOP should focus on “retooling” it. You can be certain that insurance-industry lobbyists will be helping their newly expanded congressional caucus determine what needs retooling. As my former Cigna colleague Bill Hoagland, the company’s top lobbyist, told the As-sociated Press a few days ago: “If you ended up repealing [the individual mandate], the whole thing blows up. It doesn’t work. The cost would explode.” In other words, feel free to repeal those pesky consumer protections, but keep your hands off our mandate.

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As you know from Susie's post, on Friday Howard Dean and Wendell Potter held a blogger conference call to address their concerns about the Lieberman/Nelson Senate Health care bill. Mike Lux was the moderator and a host of bloggers asked questions about the bill. What followed was a detailed discussion debating Gov. Dean's problems about the Senate bill. As much as the Villagers try to smear Dean, it's all about policy and not ideology when it comes to health care.

It's a long call that features more actual policy debate than what you would find on most political TV programs that are supposed to actually carry the same type of substance, but often fail to do. They are more interested in shouting matches than a substantive debate. You can go to DFA's website where they want you to call Harry Reid's office and say no mandates without a public option.

And as mcjoan notes while looking at the new CBO scores, the public option had a better cost saving effect for the federal government in the Health care bill than it does without it.

TPM has more:

The CBO has concluded that, on average, premiums will be the same as they would have been if the Senate had the public option, but that the public option saved the federal government more money by putting downward pressure on the premiums of low-cost private plans, which will be heavily subsidized.

The bill remains a big deficit slayer--$132 billion in the first 10 years. Over the next 10 years, CBO warns all estimates are very uncertain. But here's a key conclusion: "CBO expects that the legislation, if enacted, would reduce federal budget deficits over the ensuing decade relative to those projected under current law--with a total effect during that decade that is in a broad range around one-half percent of GDP."

Update: Of special note from the CBO report--which Pelosi should be trumpeting:

[FN 11] The presence of the public plan had a more noticeable effect on CBO’s estimates of federal subsidies because it was expected to exert some downward pressure on the premiums of the lower-cost plans to which those subsidies would be tied.

If the deficit scolds are really so worried about the federal deficit why aren't they backing the public option to be in the bill too?

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(h/t Heather.)

Former CIGNA PR chief Wendell Potter is very, very angry over Obama's movement away from true healthcare reform:

Not only is Obama clearly ready to throw the public option overboard, he is embracing the requirement that we all be forced to buy insurance from private insurers. That means your tax dollars and mine will be used to pay subsidies to the big insurers to provide coverage to people who can't afford to buy their policies, because the big insurers charge far more than they should because Wall Street investors demand that they do.

One of the people who undoubtedly talked Obama away from the public option and into supporting this mandate is his new BFF, Aetna CEO Ron Williams. Williams, who made $65 million off of Aetna's policyholders' premiums over the past two years and who was the mastermind behind Aetna's shedding of eight million members a few years ago to meet Wall Street's demands, is the insurance industry's leading champion of requiring us all to buy insurance. And, of course, without a public option, we'll all be forced to buy coverage from Aetna or one of the other private insurers.

According to a recent article in Forbes, Williams has been to the White House a half a dozen times recently to advise the president and his staff on health care reform. That same article quoted a Wall Street analyst as saying that Aetna likely will dump about 600,000 policyholders during the coming months to satisfy its investors' unrelenting profit demands.

During his speech in Montana, Obama talked a lot of trash about the insurance industry. Don't be fooled by that tough talk. It's all part of a strategy to try get us to believe we'll get the reform he promised during the campaign. Industry leaders are in fact delighted he's denouncing their behavior, because they believe most of his supporters -- who were hopeful the stars might finally have aligned for real reform -- will be fooled into thinking the reform bill that reaches his desk will benefit them more than the special interests with their armies of lobbyists. And they know the nonprofit cooperatives Sebelius and Gibbs are now trying to sell us on don't have a prayer of succeeding. The big for-profits will never let them get off the ground in any meaningful way.

Sadly, I believe the fat cats are winning and that the bill Congress sends the president will be one that gives an industry with an unsustainable business model a new lease on life and a guarantee of unprecedented future profits.

So I hope the president's aides are buying lots of lipstick. He'll need all he can get to put on that pig of a bill.