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Topic: Healthcare Debate (was: Quesada apologizes) (Topic Closed Topic Closed) Post ReplyPost New Topic
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Matthew McCallum
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Posted: 27 February 2010 at 6:14pm | IP Logged | 1  

Jodi,

I'd be happy if you wanted to restrict the profit comparison only to essential industries.

Further to that, where do you wish to draw the line at profit-making in the healthcare industry? Are the health insurance companies the only bad guys? Or do you want there to be no profits right across the board, so no profit for the hospitals, Big Pharma, medical equipment providers, et al?

What about private practitioners? Should my wife, the doctor, work for free? (Actually, been there, done that. In Alberta in the early 1990s when the government raised malpractice insurance premiums and cut reimbursement rates, my wife's receptionist was making more take-home pay than she was. Seriously.)

What about industries providing services to the medical sector? Should there be no profit built into the contract for the janitorial company that cleans the hospital hallways? Kleenex needs to sell their products at cost to a hospital because they are going to the healthcare industry?

I'm not trying to be a cad. You make a sweeping statement that sounds good for debating points, but it's just not practical.

Personally, while I don't think "profit" in and of itself is a dirty word, I like the non-profit model of institutions like Catholic Healthcare West and I think there is a tremendous opportunity for cooperative and mutualized health insurance entities to compete in the marketplace. What about a business model that rewards you for making healthy decisions today knowing that should improve our overall downstream obligations tomorrow?
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Mike O'Brien
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Posted: 27 February 2010 at 6:34pm | IP Logged | 2  

Oh, God no, dude - Matthew - sorry, there are a lot of points covered in these debates - sometimes you forget to lay out all the pre-stated rules - but speaking only for me (though I think Jodi and others have agreed with this in the past when it's come up) no one is against doctors making profit.

Because - are you ready for this whacked out liberal logic?  The doctors (and all clinicians - nurses, medical assistants, PSR/BSR/Front Office, hell, even Respiratory Therapists (though, not really) - ALL provide service and deserve profit.

What medical service, exactly, do insurers provide? 

Oh - we NEED insurance, for sure, so it is a service, but it's not a medical service.  When you pay a doctor, it's for the medical service that you received.  When you pay more than you should to an insurance company, that's usury.   

I'm not sure I'm making my point clearly here - clearly we need insurance - because it costs a lot of legitimate money to see a doctor - more than the average citizen has on hand.  So, to compensate for that, people pay into funds that they withdraw from to make the large payments to the doctors.  That's insurance 101.  Easy. 

What I'm getting at is this - we don't need, say, auto insurance.  That's a luxury.  You don't need a car.  But you need your health.  So why are we letting "bottom line" enter into this picture at all?  What medical service is the CEO of Aetna providing to us?  He's taking our money each month and then, maybe, just maybe, he's paying for some visits.  But not the expensive ones.  And no MRIs.  Those cost too much.  Cuts into his bonus. And forget that insulin.  Just lay off the carbs, fatty.  Type 1, type 2, it's all the same.  I have a new car I have my eye on, I can't be bothered paying for your diabetes meds.  In fact!  Who let a diabetic into our club??  That's a pre-exisiting condition!  We're not paying jack-shit for that guy!  It's not our fault he was born with a bad pancreas!  etc.

Sorry for the rambling nature of this, but I have zero sympathy for health insurance people's profits.  Those profits come at the expense of human life.   If they get into car insurance or life insurance or whatever, power to them, but not health insurance. 

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Matthew McCallum
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Posted: 27 February 2010 at 6:44pm | IP Logged | 3  

But they are underfunded (Government social programs) and don't always deliver because that same party on that side of the fence has been fighting them from day 1.

Mike, when you bring up social programs and FDR and underfunding, we've got to keep in a mind a couple of things. Let's just consider Social Security as an object example, because the dynamics can be pretty much extended across the board.

When Social Security was introduced in 1935, it was a popular idea. Who wants grandma living out her last days in poverty? No one, save perhaps Snidely Whiplash. But consider what the lifespan was back then, and the number of workers in the marketplace generating taxes to pay for such a program.

Fast forward 75 years. The Great Society initiatives in the 1960s expanded the entitlement. Lifespans have greatly lengthened. The ratio of Social Security payees versus tax-generating workers has expanded, so that less workers are funding more payees. And that gap will only continue to grow as the baby boomers hit retirement.

All those circumstances have changed in the last 75 years. Social Security hasn't responded. Well, not really. There's been a couple of minor changes, like raising the eligibility age from 65 to 67. That should help, shouldn't it?

If we tied the eligibility age for Social Security when introduced so that would indexed to average life expectancy -- which seems reasonable; after all we adjust for inflation -- today you would need to be approximately 80 years old before you were eligible. Let's repeat that: approximately 80 years old.

And that's just ONE metric! You look at the others and it gets much, much worse.

And remember there is no lock box, no trust fund, no big pool of cash sitting there waiting to take care of the Social Security obligations that await us in the coming years. It's all been spent, and new obligations as they arrive will only add to the deficit. THAT, my friends, is a system which is broken. (I can hear the Dustin Hoffman character in Wag The Dog: "Healthcare? That's nothing!")
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Matthew McCallum
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Posted: 27 February 2010 at 7:19pm | IP Logged | 4  

I have zero sympathy for health insurance people's profits. Those profits come at the expense of human life.

Mike, I was just about to run away -- been typing too much this afternoon -- but wanted just to touch base on this and I think we may be in greater agreement than you believe.

I don't have the precise figures in front of me so please forgive some imprecision. The average difference in CEO compensation at major corporations versus the lowest paid worker over the last 50 years has gone from 10-to-1 to something along the lines 250-to-1. Clearly, something has gone off the rails. We clearly need to address that kind of greed and profiteering.

In the same vein, what kind of service does our average claims processor provide us? I'd say they are probably pretty darned hard workers. But does this person need to become a government bureaucrat with union wages, extensive benefits and a 2.7 percent at 55 pension, which will pay them a 81 percent of their final year salary -- inflation-adjusted, of course -- assuming 25 years of service in the job?

That's my package, by the way. Not as sweet as public safety, but I don't risk being shot...

Again, I really like the idea of insurance cooperatives and mutualization.


Edited by Matthew McCallum on 27 February 2010 at 7:24pm
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David Tyler
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Posted: 28 February 2010 at 1:50am | IP Logged | 5  

Dude -

I work for the federal govt and find that last statement about beaurocrats insulting and completely sends an incorrect message. 

First and foremost is that we don't make a lot of money and our healthcare coverage is no better than anyone elses (hell, we finally got dental and eye care a little over a year ago .. and, believe me, it's a not great coverage).

We're already understaffed and many of us do multiple jobs.  We try very hard to do a good job.  We have ethics training every year and that's part of it..... so, if healthcare begins to fall under federal govt management, someone will certainly complain about it but you can trust that federal workers will try hard to make it work for you.

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Mike O'Brien
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Posted: 28 February 2010 at 2:48am | IP Logged | 6  

Like Matthew before me, I don't have time for a long reply - and it sounds like Matthew had more to say anyway - I only have a second, but something David just added reminded me of a sore point:

I hear a lot - not from Matthew, per se, but on Right Wing Radio and in the Republican Media, about how workers - govt workers, union workers, etc, are paid too much.

Let me repeat that - Paid too much.

First - when did we, or the Republican Party anyway - become the party of the downwardly mobile?  Don't we all strive to make more, to be paid more? 

Second - did I blink and miss the end of the free market in America?  You're paid what the market will support.  If you are overpaid, union or no, and the business model can't support it, you will no longer be employed.  I don't say this out of naieveity (SP?? I mangled that one...) - I've had union jobs and I've managed union employees - the free market still works - it's just that if you're working with a union, you have to be more carefull.  But you can fire all day long, you can cut pay, etc.   But...

Not so that the bosses can make more money.   Which leads to my third and final point before I resume my offline activities -

Third - We hear a lot about workers being paid too much, but where do we hear about bosses being paid too much?  Fact is, as was mentioned earlier - the ratio of worker to boss pay has gone out of control, and the Republicans don't mind the bosses making money - they're just upset that workers are making a decent middle class living.

(Also related: Republican opposition to minimum wage.  Minimum wage = if I could legally pay you less, I would.)

Is this bad, wrong, incorrect?  Hell no - Republicans are free to believe what the hell they want - here's my beef with that - if they're going to support bosses over workers, why are so many working class people republicans?? * 

(my guess plays the race and religion cards, and happily I'm ducking out for a while, so... fire those slings and arrows in my absense!)

 

 

* - of seek out Malcolm X's explanation - type his name, and "house" and "field" into google and see what you get.

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Matthew McCallum
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Posted: 28 February 2010 at 1:18pm | IP Logged | 7  

David,

Since you likely haven't read the previous 16 pages of this thread and merely want to leap on my last comment with its "insulting" and "incorrect message", indulge me for a moment to share a bit of my background, and then you can read my commentary throughout this thread again and perhaps re-consider your remarks if you'd like.

I work in municipal government in California. Yeah, I'm a hard working bureaucrat, too. Much more so over the last 18 months as I've lost three managers in my Department and all their work has flowed down to me (a salaried employee who doesn't get overtime, so 50-plus hour weeks are now pretty standard). It gets better. My union is SEIU, and let me tell you that I have no end of pride that I am represented by the most corrupt labour union since the Teamsters. But that's a whole other thread.

For the last 20 months straight I've been part of a team re-working the budget for our City to try and keep the lights on, services delivered and people employed. In that span, due to decreasing tax revenues, we're had to trim more than $15 million from General Fund expenditures, dropping from an outlay of $80 million a year to $65 million. We're now trying to cut another $5 million, and we're at a critical point. We've trimmed the fat. We've cut to the bone. We've sucked out the marrow. Now we've got to remove ribs.

You likely know, David, but for those who are not aware, the General Fund is the expenditure source for general government activities. Police, Fire, Streets, Parks, most of the things you think of when you think "local government" are funded out of the General Fund. And the majority of the cost in the General Fund is people.

The unions -- and my union in particular -- are just not interested in making any concessions. Instead of looking at the facts and seeking a solution, my union is more intent to drag out all the standard class warfare arguments about fat and happy management exploiting the workers. Because I'm intimately familiar with the budget, I share the facts. Revenues (sales tax, hotel tax, property tax) are down by more than 35 percent. The ratio of the City manager's compensation versus the lowest paid represented employee is about 5-1, which is pretty narrow for a city of our size. The organizational structure is flat and lean, and not top heavy with management and middle management. Management has given up -- not deferred, but given up -- three COLAs. They are also taking two furlough days per month (essentially a 10 percent pay cut). They are trying to lead by example.

My union? Well, after tooth-and-claw fighting, and standing firm through two rounds of cuts, we've generously decided to defer one COLA at the last round. Not eliminate, but defer, lengthening our contract by a year and tacking it on to the end of the contract. Deferring a three percent raise in an economy of flat to negative growth CPI. Makes me proud to wear my purple t-shirt.

Now we're back at the table again and without employee concessions -- because there are no more operations and materials to cut and no more financial slight-of-hand that can be performed -- a lot of good people, my guess is between 40-50, are likely going to lose their jobs, all because my union (and the other unions) are unwilling to share the pain.

And it's more than just a handful of my co-workers losing their jobs and the impact that will have on their families. Another key concern is succession issues. Out of roughly 900 employees, we have about 50-75 who will be retiring in the next 12-18 months. The employees that get cut in the forthcoming layoff are the ones who are being mentored by these veterans. It's going to put us in a situation where a lot of institutional knowledge walks out the door without transference.

But my union's bargaining team doesn't care about any of that. By the end of our current contract the majority of the team will be at retirement age. Any salary or compensation concession between now and then, even with a sunset clause tied to an improving economy, cuts into their 2.7 percent at 55 retirement payout. And if 50 more people lose their jobs in the interim so their retirement remains plump, well, it's a dog gone shame about bad economies, you know?

Another tidbit:

About five years ago, when my boss was on maternity leave, and I was Acting Director for six months I faced a real challenge. I learned one of our supervisors was falsifying time cards for her staff. This wasn't a first offense on this issue. Similar falsification had been discovered previously and she had been warned. There had been other issues that she had been disciplined for in the past. Now she was back to her old tricks. I started an investigation and discovered more bad news. It was a real mess and it was quite clear this was not a person who should be working for the public. The case against her was so bad, David, that even the union (good old SEIU again) washed their hands of her and wouldn't represent her during termination proceedings.

Like I said, that was about five years ago. She's still working for the City, by the way. As you know, it's virtually impossible to terminate someone in the civil service who passes probation, even when you've got them dead-to-rights.

Lastly, David, I'm originally from Canada and now live in California. My wife is a doctor. I know as a patient and a provider how the Canadian federal and provincial governments managed healthcare. I know as a patient and a provider how the State of California manages healthcare (MediCal). And I know as a patient and provider how the Federal Government manages healthcare (MediCare). This firsthand knowledge does not fill me with a great deal of confidence on the expanded role of the federal government in this matter.

I could continue, but that should be sufficient to give you the lay of the land. Now, please, go ahead and lecture me about underpaid, hard-working public servants, ethics training and matters of the public trust.

And if I may be so bold, personally I find a comment directed to me addressed "Dude" to be insulting. Beyond having a Christian name that I'm rather fond of, I'm originally from cattle country and know how to ride a horse! "Dude" indeed!


Edited by Matthew McCallum on 28 February 2010 at 1:26pm
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Jodi Moisan
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Posted: 28 February 2010 at 1:39pm | IP Logged | 8  

Matthew you completely missed Davids point.

David I hear you on all the anti govt. vibe, I think we have one of the best countries going and you sir contribute to that, thank you.  The federal Government is NOT the enemy as it has been targeted by some and it's a shame to gain political ground, you have to demonize someone or something.

Sad day in this country when the idiot that flew his plane into the IRS is now a hero to some, for targeting the federal govt.. David has the violence and anger been talked about where you work?
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Knut Robert Knutsen
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Posted: 28 February 2010 at 1:39pm | IP Logged | 9  

While I agree that when there's nothing more to give, everybody should be willing to cut back a bit (it has helped save a lot of businesses in my county, at least for a while), I can also understand how people with job security wouldn't want to give an inch. 

They are hardly the only ones in this situation looking out for number one.  Practically everyone on Wall Street seem to be singing THAT tune.

In the past, when belts have been tightened through collective bargaining here in Norway, the signal effect of bosses giving up their bonuses (or at least promising to give up their bonuses, whether they actually do it ...)  has usually been the clincher.

The problem is that once you tighten that belt, (and even a zero increase is a de-facto reduction due to inflation), they'll expect the same next year, and the year after that, and the year after that. No matter whether profits increase.

It's pretty hard to recover abandoned ground. So in that sense I suppose they can justify their hard-line attitude.  

I certainly value solidarity in a crisis, and agree with you that they should have taken a (time limited perhaps) pay cut if it could keep everybody on the payroll. But cynic that I am, I find it difficult to hope for solidarity these days.  

And ,again as a cynic: I've seen situations where employees have been promised that more people would keep their jobs if everybody agreed to a paycut, just to see management take the savings of both the pay cut and the downsizing.

The choices are difficult. I suppose what it comes down to is whether there is a relationship of trust between Unions and Management.

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Matthew McCallum
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Posted: 28 February 2010 at 2:04pm | IP Logged | 10  

Jodi,

I completely missed David's point?! Would you care to explain how? If anything, it could be argued his response missed my point (in the last message on page 16).

And Jodi, I work in a public building in a highly conservative region of California with an active Tea Party Movement and lots crazies with guns. Could you express some concerns about my safety?


Edited by Matthew McCallum on 28 February 2010 at 2:10pm
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Jodi Moisan
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Posted: 28 February 2010 at 2:49pm | IP Logged | 11  




Edited by Jodi Moisan on 28 February 2010 at 2:53pm
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Jodi Moisan
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Posted: 28 February 2010 at 2:55pm | IP Logged | 12  

Sorry I couldn't edit my post to link the article I wanted, so I had to make a new post

"Could you express some concerns about my safety?"




Edited by Jodi Moisan on 28 February 2010 at 2:56pm
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