Health Care For America Now

America is more open to a public conversation about government regulation of companies than at any time in many, many years. (Yesterday in a discussion with union leaders in a highly regulated industry they could not agree on the starting date for this wave of deregulation. Was it 1965 or 1971?)

Congress is talking about regulating credit cards. Remember, they used to be regulated, state-by-state. Then they all moved to South Dakota or some other lawless place. Now, America wants Congress to start minding the store again. There is strong popular sentiment to outlaw sub-prime mortgage scams and predatory lending practices. The word “predatory” is used openly to describe giant financial companies. Again, Americans want Congress to mind the store.

Yesterday’s “let us do it” letter from big health care industry stakeholders can be seen in this context. They see the regulatory wave growing, and want to be out ahead of it. The only proper response is to step up the call for regulation with teeth. If the industry mends its ways, regulations won’t bother them. If they don’t, the machinery will be in place to act quickly.

We can help people see the need by shining a light on “predatory” practices by insurers. After all, they are financial institutions like banks and credit card companies. Denial of payment should be treated the same as a bank refusing to give you your money. It’s not the insurance company’s money. They are just holding it to pay for my health care.

“Sub-prime” insurance should be outlawed. A policy that does not cover the purchaser is a scam. High-deductible policies are sub-prime. Bare-bones policies are sub-prime. If we don’t demonize them, the other side will describe them as bargains and run a “one size does not fit all” media blitz. If ever there was a time to set a reasonable floor on health coverage, it is right now.

We have to wage this regulatory fight to make the “level playing field” attack less damaging. A public health insurance plan should not have to compete with a high-deductible, low coverage, low premium rip-off plan. The power of the public option is magnified when combined with a strong regulatory wall keeping insurance companies from a big part of their plundering and pillaging business model.

We should join the industry in the call for a “specific focus on obesity prevention commensurate with the scale of the problem.” A good place to start is corporate fat cats and bloated bureaucracies. The recent Georgetown/RWJ study [pdf] shows people can’t figure out their policies, can’t figure out what is covered and what isn’t, and can’t estimate what the real costs will be. They call for truth in packaging. We should add strong content standards.

The public hates insurance companies for a reason. Even Luntz sees it. Turn up the heat on insurance company predatory practices. It’s regulation time for American health care.