Thursday, May 13, 2010

Never Let the Facts Get in the Way of a Good Attack By Kevin Mooney

Someone isn't telling the truth and if that someone turns out to be an occupant of the White House it's time for private industry to worry.

In his weekly radio address, President Obama accused an insurance company of "systematically dropping the coverage of women with breast cancer." Even as he declined to name the alleged culprit, a forceful response was forthcoming from WellPoint Inc., the nation's largest insurer.

There are no gray areas here. Either the White House has seized upon inaccurate information, or the company in question is engaged in slick, misleading public relations.

In a letter addressed to President Obama, WellPoint CEO Angela Braley calls out the White House for circulating and repeating "false information" about so-called rescission practices.

"If we are going to make this law work on behalf of all Americans, the attacks on the health insurance industry, an industry that provides valued coverage for more than 200 million Americans must end," she wrote. "We believe that our recent action to adopt many of the insurance reforms earlier than required by law is an indication of our willingness to work with your Administration to achieve this objective."

In his Saturday radio talk, Obama laced into what he described as the "perverse practice of dropping people's coverage when they get sick." He also said Americans have been "held hostage to an insurance industry that jacks up premiums and drops coverage as they please."

Robert Zirkelbach, a spokesman for America's Health Insurance Plans, a trade group, asks thoughtful Americans to entertain a larger historical view that shows that the industry's profit margin has been relatively low, ranging from 3 percent to 5 percent.

"For every dollar spent on health care in America, less than one penny goes toward health plan profits," he said. "Health plan profits are well below other industries within the health care sector."


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