Posted: November 13th, 2009, 1:40 am
<center>The Ultimate In Right Wing Hypocrisy</center>
It's highly aggravating that the public bails out Goldman Sachs and then, after having their butts saved by the public, they throw public health care and the public option under the bus!
It's highly aggravating that the public bails out Goldman Sachs and then, after having their butts saved by the public, they throw public health care and the public option under the bus!
And, did you know that the Republican National Committee's health care plan covers abortion. Yep, that's right ... the ultimate in hypocrisy. ... Until Politico discovered that fact and published it today, and now the RNC claims that it will promptly drop that coverage:Goldman To Private Insurers: No Health Care Reform At All Is Best
by Sam Stein
Huffington Post, November 12, 2009
A Goldman Sachs analysis of health care legislation has concluded that, as far as the bottom line for insurance companies is concerned, the best thing to do is nothing. A close second would be passing a watered-down version of the Senate Finance Committee's bill.
A study put together by Goldman in mid-October looks at the estimated stock performance of the private insurance industry under four variations of reform legislation. The study focused on the five biggest insurers whose shares are traded on Wall Street: Aetna, UnitedHealth, WellPoint, CIGNA and Humana.
The Senate Finance Committee bill, which Goldman's analysts conclude is the version most likely to survive the legislative process, is described as the "base" scenario. Under that legislation (which did not include a public plan) the earnings per share for the top five insurers would grow an estimated five percent from 2010 through 2019. And yet, the "variance with current valuation" -- essentially, what the value of the stock is on the market -- is projected to drop four percent.
Things are much worse, Goldman estimates, for legislation that resembles what was considered and (to a certain extent) passed by the House of Representatives. This is, the firm deems, the "bear case" scenario -- in which earnings per share for the top five insurers would decline an estimated one percent from 2010 through 2019 and the variance with current valuation is projected to be negative 36 percent.
What the firm sees as the best path forward for the private insurance industry's bottom line is, to be blunt, inaction.
The study's authors advise that if no reform is passed, earnings per share would grow an estimated ten percent from 2010 through 2019, and the value of the stock would rise an estimated 59 percent during that time period.
The next best thing for the insurance industry would be if the legislation passed by the Senate Finance Committee is watered down significantly. Described as a "bull case" scenario -- in which there is "moderation of provisions in the current SFC plan" or "changes prior to the major implementation in 2013" -- earnings per share for the five biggest insurers would grow an estimated ten percent and the variance with current valuation would rise an estimated 47 percent.
The report, a Goldman official stressed, was analytic not advocacy-based. Their job was to provide a sober assessment of the market realities facing private insurers under various versions of health care reform.
"If no reform at all happens you would see the largest rise in EPS," a Goldman official acknowledged. "But what we are doing is just analyzing what the stocks would do under different scenarios."
The study does note on the front page that the firm "does and seeks to do business with companies covered in its research reports." Those companies include Aetna, Wells Point and United Health.
In the context of the current health care debate, the findings provide a small window into the concerns that have driven the private insurance industry's opposition to reform legislation. Simply put: health care reform is going to hurt their bottom line. No less a prestigious voice than Goldman Sachs is telling them so.
Some insurers, in the end, will be hit harder than others. CIGNA is the lowest of the big five, for instance, because it does little business providing insurance plans to Medicare patients, individuals and families buying health plans directly, or small employers that offer health plans to their workers.
In addition, some reforms are going to hurt the industry more than others. Regulatory changes -- such as prohibiting the prejudice against consumers with pre-existing conditions -- will have an impact across the board, as will the funding cuts to Medicare Advantage.
Overall, Goldman calculates the probability of reform passing Congress at 75 percent. Though the limitations of Goldman's political prognostications were on full display earlier in the document:
By mid-late October, we expect a cloture vote (60 votes) to bypass a potential filibuster followed by several weeks of debate over proposed amendments on the Senate floor (with a similar process under way in the House). If both the Senate and House are able to pass legislation (perhaps before the Thanksgiving recess), a House-Senate conference negotiation should produce combined legislation for final approval (perhaps by mid-December).
Source: http://www.huffingtonpost.com/2009/11/1 ... 55998.html (includes full text of Goldman memo)
RNC to opt out of abortion coverage
by Jonathan Allen, Meredith Shiner
Politico, Thu Nov 12, 5:12 pm ET
The Republican National Committee will no longer offer employees an insurance plan that covers abortion after POLITICO reported Thursday that the anti-abortion RNC's policy has covered the procedure since 1991.
"Money from our loyal donors should not be used for this purpose," Chairman Michael Steele said in a statement. "I don't know why this policy existed in the past, but it will not exist under my administration. Consider this issue settled."
Steele has told the committee's director of administration to opt out of coverage for elective abortion in the policy it uses from Cigna.
Federal Election Commission Records show the RNC purchases its insurance from Cigna, and two sales agents for the company said that the RNC’s policy covers elective abortion.
As of Thursday, the RNC’s plan covers elective abortion – a procedure the party’s own platform calls “a fundamental assault on innocent human life.”
Informed of the coverage, RNC spokeswoman Gail Gitcho told POLITICO earlier Thursday that the policy pre-dates the tenure of current RNC Chairman Michael Steele.
“The current policy has been in effect since 1991, and we are taking steps to address the issue,” Gitcho said.
The RNC moved quickly Thursday to assuage any concerns its members might have.
In a letter obtained by POLITICO, RNC Chief of Staff Ken McKay writes to the 168 committeemen and committeewomen across the country that Steele "takes this issue very seriously."
He writes that the RNC has been evaluating its health insurance policy and will continue to do so.
Leading up to passage of the House health care reform bill last week, 176 House Republicans joined 64 Democrats in voting for the so-called Stupak amendment, a measure that prohibits federal funds from being used to buy health insurance that covers elective abortions.
A spokeswoman for the National Republican Congressional Committee – the campaign arm for the House Republicans – said it does not include coverage for elective abortions in its employee insurance policy.
“The policy does not cover abortions unless the life of the mother is in danger,” the NRCC spokeswoman said.
According to several Cigna employees, the insurer offers its customers the opportunity to opt out of abortion coverage – and the RNC did not choose to opt out.
But rank-and-file Republicans said Thursday before the change was announced that the policy should – and would – be changed.
“We were not aware of this, obviously, and this will, of course, be fixed,” said James Bopp Jr., a Republican National Committeeman from Indiana. “I think Chairman Steele will see to it that that’s the case.”
Rep. Jack Kingston, a Georgia conservative, said “they need to drop that clause” from the policy or find a new one.
“From a philosophical standpoint, it’s inconsistent,” Kingston said. “It makes me think someone isn’t scrutinizing the purchases.”
Cigna spokesman Chris Curran declined to discuss the specifics of the RNC’s plan, saying it’s against company policy to reveal even the identities of its insured. But he said that Cigna’s products “are designed to meet the requirements of our individual employer clients. Employer clients are informed of the services covered and it is their choice to decide which benefits meet their needs.”
There is no indication that any RNC employee used the abortion coverage, but Planned Parenthood President Cecile Richards said it’s “no surprise” that the RNC had been offering it.
“It’s an employer that wants to provide standard health benefits for its employees,” she said. “That’s why the Stupak amendment goes too far in taking away benefits that women have today, and that’s why women won’t allow the Stupak amendment to become law.”
The Stupak amendment, named for sponsor Bart Stupak (D-Mich.), was adopted by the House before it passed the health care bill on Saturday night. It prohibits a government-backed health care plan from offering abortion services and bans the use of federal subsidies for individuals to buy into health care plans that provide abortion coverage.
Rep. John Shadegg of Arizona was the only House Republican who did not vote in favor of the amendment. He voted “present.”
While 64 Democrats voted for the amendment, the majority did not – and the Democratic Party’s 2008 platform says the party “unequivocally supports Roe v. Wade and a woman’s right to choose a safe and legal abortion, regardless of ability to pay.” The Democratic National Committee provides abortion coverage to its employees, the committee said.
Source: http://news.yahoo.com/s/politico/29456