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Mike Stathis is the Managing Principal of Apex Venture Advisors, a business and investment intelligence firm for the private and public markets, serving the needs of venture firms, corporations and hedge funds. Mike’s work in the private markets includes valuation analysis, deal structuring,... More
My business:
AVA Investment Analytics
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avaresearch.com
My book:
America's Financial Apocalypse: How to Profit from the Next Great Depression
  • Americans Get Screwed Again by Bought-Off Politicians 0 comments
    Sep 19, 2009 02:02 PM | about stocks: UNH, WLP, AET, HUM, CI
    After meeting last week to wrap up the final touches on the Senate Finance committee's healthcare reform bill, Committee Chairman Senator Max Baucus has announced the bill is ready for a vote as early as next week. 
     
     
    It is thought that the final bill making its way through the Finance Committee has the best chance of passing. 
     
    Why, you ask?  
     
    Well, it appears as if Senator Baucus is really working for the healthcare industry. Therefore, his bill is likely to be that most favored by both parties since healthcare lobbyists control all of Congress.
     
    With more than 2000 healthcare lobbyists, that boils down to around 3.8 for every congressman. And the healthcare industry supplies them with billions of dollars to ensure that America’s healthcare system remains as a gravy train.
     
    If you’re experiencing feelings of déjà vu, it’s probably because you remember the details of how Medicare Part D was passed; America’s biggest entitlement program ever. Have a look at the 60 Minutes report. 
     
     
    Baucus has been so loyal to industry lobbyists that they were the first to see the early version of the bill a couple of weeks ago, according to an admission by a White House spokesperson.
     
    That's right. Baucus didn't send the bill to the president, his Chief Strategist David Axelrod, or other members of Congress. He sent it to healthcare lobbyists so they could advise him of changes favorable to their industry. Perhaps that is why the bill does not include a government insurance option to compete with the private market industry, as originally promised by President Obama. 
     
    Despite the myths you may have heard, the U.S. healthcare industry resembles anything other than a free market approach to healthcare. Industry collusion, price gouging, and the carve-out of territorial monopolies are not dynamics found in any free market system I am familiar with.
     
    In fact, I consider the big health insurance companies in the U.S. to operate as a mafia. They set the rules of the game so that they always win. And when they need higher profits, they merely change the rules of the game; you know, like increasing fees for office visits, increasing co-pays, etc.
     
    Do you really think Obama intends to change things? Even his most ambitious plans for healthcare reform fall way short of what is needed because he does nothing to address the biggest problem – unhindered price hikes by the industry. He wouldn’t want to upset healthcare lobbyists.
     
    The idea is to convince Americans that he is improving the system while pleasing the industry. Thus, his solution of requiring everyone to have health insurance merely creates an even bigger gravy train for the HMOs. As a result, Obama’s healthcare reform may turn out to be the insurance industry's counterpart to the Bush’s Medicare Part D (taxpayer-funded) gravy train for the drug industry.
     
    Whether a government insurance option is provided or not, if Baucus’ bill passes, healthcare is likely to be made worse because you will be required to buy private market insurance or face a penalty. This mandate is likely to boost total revenues to insurers, most likely with no pressures to compete for price.  We are likely to see more industry collusion. 
     
    Obama’s healthcare “reform” ensures higher profits for the health insurance industry, compliments largely of taxpayers. As you can imagine, healthcare reform is going to be a big winner for HMOs like UnitedHealth, WellPoint, Humana, Cigna, Aetna and others. 
      
    Baucus might feel he owes the industry some favors since he has received more than $5,500,000 from healthcare lobbyists since 2008. Clearly, he has been bought off, similar to most others in Congress. He just happened to get the biggest payout. And this was no coincidence.
     
     
     
    To confirm his loyalty to the industry, he has even hired former lobbyists to serve on his panel for healthcare reform.
     
     
    This is a disgrace.  How can the American people allow this dog-and-pony show to continue?  
     
    "This is a good bill. This is a balanced bill," Baucus told reporters. 
     
    A balanced bill is not something acceptable. "Balanced" means a bill balanced with the same illegal, extortionist policies that have created the world's most costly, least efficient healthcare system. 
     
    This is no time for balance. It’s time for real reform. Thus far, Obama has backed away from every promise he made prior to winning the election; U.S. troops are still in Iraq; no one has been held accountable for the multi-trillion dollar real estate-banking Ponzi scheme; free trade has not been restructured.
     
    And rather than real financial reform as promised, Obama has decided to grant supreme authority to one of the primary institutions responsible for the economic collapse; the Federal Reserve. He continues to err because he has entrusted the advice of the same people who were responsible for this mess like Larry Summers.
     
    And now Obama is backing down from real healthcare reform. Rather than delivering the much needed reform from the entire industry, Obama has whittled down the issue to focus exclusively on health insurance reform. But even health insurance is not being reformed. The industry is being further empowered.
     
    It’s time for Obama to deliver the change he promised. America needs a complete overhaul of the health insurance industry, but only as a start to healthcare reform.
     
    During a press interview to discuss Baucus’ bill, Senate Majority Leader Harry Reid, a Democrat, said, "Everyone should understand it's just the beginning, but it's a good beginning."
     
    Well of course it is Senator Reid, but only because you say so.
     
    As you might imagine, Reid is also in bed with the healthcare industry, as is virtually every other member of Congress. Let’s take a look at the findings from the Campaign Action Fund:
     
    Members of five committees working on health care reform legislation received $187.1 million in campaign contributions
     
    Elected officials who voted against health reform legislation received 65% more in contributions from health and insurance interests than officials who voted for reform

    Health reform legislation is bottled up in two committees whose members have  received nearly  $100 million



      http://www.campaignmoney.org/threevotes


    Healthcare Lobbyist Contributions to Democrats on the Senate Finance Committee

    Healthcare Lobbyist Contributions to Democrats on the Senate Finance Committee


    Healthcare Lobbyist Contributions to Republicans on the Senate Finance Committee


     
    The American people wake up and demand an end to the system of crony capitalism that has come to define American politics. The single-most critical thing that can be done to reclaim America is to ban all lobbyist activities and donations. Until Americans demand this, their votes will not count for anything. 
     
    One additional note to add. Last week, I sent a late draft of my book America's Healthcare Solution to Baucus, President Obama, and Obama's chief Strategist David Axlerod. 
     
    During his recent 60 Minutes interview, Obama stated, "I would be willing to ... consider any ideas out there that would actually work in terms of reducing costs, improving the quality of patient care." My book offers the best solution to these problems. And it does not necessarily mandate universal healthcare.
     
    As you might imagine, I have heard nothing from the White House. Obama is full of hot air.
     
    Make no mistake, Washington is solely concerned satisfying their financial sponsors; the healthcare industry. Politicians are no different than corporate executives. That explains why the revolving door remains wide open between political office and corporate America.
     
    I urge you all to call the White House and insist Senator Baucus be removed from the Senate Finance Committee and his healthcare lobbyist bill be tossed in the trash. 
     
    Tell Obama you are sick of this all-bark, no-bite speeches, and empty bag promises. 
     
    Tell him it's time to step up to the plate.
     
    Comments to the President 202-456-1111
     
    Senate Finance Committee (202) 224-4515
     
    If you want to understand the full spectrum of problems plaguing the healthcare system, along with the most viable solution, reserve your copy of America's Healthcare Solution today on Amazon. 
     
     
     
     
    I have been working on this book for some three years and it is in the final editing stage. The page count is around 444 (over 140,000 words), with about 120 figures, tables and charts, and over 700 references. It is expected for release in a couple of weeks. 

    Disclosures: no positions
    Themes: healthcare reform, politics, HMOs Stocks: UNH, WLP, AET, HUM, CI
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