October 14, 2009

Dems Abuse Power of the State in an Attempt to Threaten Those who Criticise Healthcare

The health insurance industry criticized Obamacare, and immediately, in return, Democrats in Congress are actually threatening insurers with a legal change that would be harmful to them. This is a massive assault on free speech by the Democrats.  They are actually attempting to use the power of the state to halt criticism of Obamacare.

Here are the specifics. From AP, two days ago:

Insurance companies aren't playing nice any more. Their dire message that health care legislation will drive up premiums for people who already have coverage comes as a warning shot at a crucial point in the debate, and threatens President Barack Obama's top domestic priority.

Democrats and their allies scrambled on Monday to knock down a new industry-funded study forecasting that Senate legislation, over time, will add thousands of dollars to the cost of a typical policy. "Distorted and flawed," said White House spokeswoman Linda Douglass. "Fundamentally dishonest," said AARP's senior policy strategist, John Rother. "A hatchet job," said a spokesman for Senate Finance Committee chairman Max Baucus, D-Mont.

But the health insurance industry's top lobbyist in Washington stood her ground. In a call with reporters, Karen Ignagni, president of America's Health Insurance Plans, pointedly refused to rule out attack ads on TV featuring the study, though she said she believed the industry's concerns could be amicably addressed.

At the heart of the industry's complaint is a decision by lawmakers to weaken the requirement that millions more Americans get coverage. Since the legislation would ban insurance companies from denying coverage on account of poor health, many people will wait to sign up until they get sick, the industry says. And that will drive up costs for everybody else.

Insurers are now raising possibilities such as higher premiums for people who postpone getting coverage, or waiting periods for those who ignore a proposed government requirement to get insurance and later have a change of heart.

...The study projects that the legislation would add $1,700 a year to the cost of family coverage in 2013, when most of the major provisions of the Baucus bill would be in effect.

Premiums for a single person would go up by $600 more than would be the case without the legislation, it estimated.

In 10 years' time, premiums would be $4,000 higher for a family plan, and $1,500 more for individual coverage.

Today, the Democrats responded by abusing the power of the state to threaten the insurers with an attack. From Politico:

Democrats launch attack on insurer exemption

The long-simmering tension between insurers and congressional Democrats is erupting into open warfare, with lawmakers stepping up their push to revoke a key federal protection for the insurance industry.

Sen. Chuck Schumer (D-N.Y.) on Wednesday will call for an amendment to the health care reform bill that would remove the long-standing antitrust exemption for insurers, echoing a push by other Democrats to crack down on the industry.

The Government is supposed to defend free speech; to be public servants, not our masters, overlords, or rulers. Under Barrack Obama, the Democrats are presenting a literal threat to freedom of speech in this country. They all need to be voted out of office, because they are presenting a danger to the freedoms this country is built on.

Update 10-26-09

From Dick Morris:

The medical device industry had its day at the White House as did the insurance industry, the drug makers, the nurses, and the doctors. In turn, each group heard the White House request that they come up with voluntary cuts in their health care costs and support Obama's proposed changes in return for assurances that Congress would not impose deeper cuts (or, in the case of the doctors, that it would actually rescind cuts already scheduled under current statutes).

But, unlike all these other groups, the medical device industry refused the deal. This posture enraged the tyrants in the White House who vowed to punish the industry with cuts imposed by Congress.  The result was a decision by the revenue-hungry Senate Finance Committee to extract billions in funds from the industry.

The legislation does not work like a sales or excise tax.  Rather it follows the model of the punitive tobacco settlement imposed on cigarette companies in the 90s.  It assesses an industry-wide payment which firms must make in proportion to their market share.  It bars the them from passing along the cost of the assessment by charging more for certain basic products, but allows them to raise the price of others to raise the funds for the fee.

So, the result will be that virtually every piece of advanced surgical equipment will be subject to a price increase to meet the levy from Washington. No matter that these devices often make the difference between life and death and that, in effect, taxing them raises the cost of vital treatments.  The vengeful White House will have its pound of flesh from the medical device industry for daring to be independent and to refuse to knuckle down to Administration pressure!

This tax, imposed in a spirit of haughty arrogance, falls on totally inappropriate objects.  Valves, prosthetic limbs, pacemakers, hearing aids, and such are essential therapies that make life longer, better, and less painful.  To tax them makes no sense.  Except in the world of sharp elbows and interest group politics that grips this take-no-prisoners and show-no-mercy White House.

Obama uses the power of the state to oppose people's right to free speech, and our right to be free.