A Health Care Reform Object Lesson

Medicare Advantage gives Medicare beneficiaries the option to receive benefits through private health insurance plans.  Medicare then reimburses the Medicare Advantage providers.  Humana Inc. provides Medicare Advantage.  At least, it does for the moment, but that may change.  The Senate Finance Chairman, Max Baucus has sent federal regulators after Humana for criticizing his health care reform bill. 

Earlier this month, Humana sent a one-page letter to its customers enrolled in its Medicare Advantage plans, which offer private options to Medicare beneficiaries. Humana noted that, because of spending cuts proposed by Democrats, "millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable." The Kentucky-based company also urged its customers to contact their Representatives. Pretty tame stuff, as these things go.

Mr. Baucus took it as a declaration of war. He complained to the Centers for Medicare and Medicaid Services, the federal health-care agency, which on Friday duly ordered Humana to cease and desist. CMS claimed the mailer was "misleading and confusing" and told the company it has opened an official probe as to whether the mailer violated laws about how the insurers that manage Advantage plans are allowed to communicate with their customers, as well as other federal statutes.

"Please be advised that we take this matter very seriously and, based upon the findings our investigation, will pursue compliance and enforcement actions," CMS concluded, ominously. Humana could be fined or booted from Medicare Advantage altogether.

Piece by piece, this is the way the health care industry will be persuaded to come out in favor of health care reform.  The choice Obama, Baucus, and the Democrats now threaten to individual providers who depend on federal reimbursement is, "You're with us, or you may be out of business."  It's easy to see why the  public option is so attractive to Democrats.  It's the vehicle that will give Washington this kind of leverage over an entire industry.

Comments

[CaptDMO]

Golly, where's the part where the nice folks at Humana say
"OK Mr. Bipartisan, bring it on bitch.
Let's see how much potential "public health" cash we can throw down the
snake hole in a "legal" smack down with YOUR "party".

The Con-Con "reinterpreting"" the First, Second, and (which ever one defines appropriate parameters and limitations of "service" to We The People..) hasn't passed yet, so Mr.Baucus, his minions, and his "party leaders" might consider sticking to their knitting instead of tossing around their endless disingenuous claims to "special exceptions" on the Constitution they've sworn to defend and protect.

Oh, wait, was that oath only a VERBAL "contract" with America?
Is it to be considered "duress" if the potential office/appointment can not be installed without it?

[Tom Bowler]

Just think about it this way. The power that Max Baucus brings to bear on Humana is the power to put people out of work. Something he is quite obviously willing to do, for the greater good, of course. Very persuasive.