Apparently, Humana wrote a fishy letter to its customers, advising them that the democrat health care plan could cause them to lose Medicare coverage - a factual statement.
Sen. Max Baucus (D-MT) doesn't like the criticism and has begun a campaign of bullying against Humana to silence them.
Sen. Max Baucus (D-MT) doesn't like the criticism and has begun a campaign of bullying against Humana to silence them.
Baucus Bullies Humana Inc. - WSJ.com
Political intimidation has always been part of the current Congress's health-care strategy: "If you're not at the table, you're on the menu" is tattooed on every lobbyist and industry rep in Washington. But Max Baucus's latest bullying tactics are hard to believe by even these standards, as the Senate Finance Chairman has sicced federal regulators on the insurer Humana Inc. for daring to criticize one part of his health 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.
"It is wholly inappropriate for insurance companies to mislead seniors regarding any subject—particularly on a subject as important to them, and to the nation, as health-care reform," Mr. Baucus said in a statement yesterday, playing the role of Congressional censor. "The health-care reform bill we released last week strengthens Medicare and does not cut benefits covered under the Medicare program—and seniors need to know that."
In fact, the Baucus draft legislation slashes $123 billion over the next decade from Medicare Advantage, which Democrats hate despite the fact that almost one-fourth of beneficiaries have chosen it over traditional fee-for-service Medicare. One reason seniors like it is because private insurers focus on quality and preventive care and try to manage benefits, as opposed to simply paying bills.
A new study from America's Health Insurance Plans, the industry trade group, finds that seniors on Advantage in California spent 30% fewer days in hospitals over fee-for-service patients, based on federal data. Democrats say that insurers are "overpaid," but the cuts—as Humana correctly noted—mean that seniors may lose this coverage.
Mr. Baucus doesn't want seniors to be educated about these facts, and obviously he's willing to use his enormous power to punish any private company that doesn't affirm his, well, creative version of reality. Nearly half of Humana's yearly revenue comes from Medicare Advantage, and the insurer says that it is complying in full with the CMS investigation. Yesterday, the agency also barred all Advantage insurers from providing similar information to their beneficiaries.
This episode neatly shows how all U.S. health care will operate if Mr. Baucus's bill becomes law. For months Humana and the wider insurance lobby have been among ObamaCare's most prominent cheerleaders, with the exception of Advantage cuts and the public option—even though they'll be converted into government contractors in the business of fulfilling whatever Congress happens to dictate. The insurers are willing to give up their remaining business autonomy because Democrats intend to mandate that all consumers buy their products—but as with Advantage now, that means government will control the funds upon which the insurers' survival depends. They'll have no choice but to genuflect, or else the political class will pull out the tire irons.
Humana merely made the mistake of trying to tell seniors the truth about what will happen to their coverage, and now CEO Michael McCallister had better hire a good team of lawyers. Mr. Baucus and the Obama Administration are out to make him an object lesson to the rest of the business class, and that means they won't stop until Humana cries uncle or is ruined.
