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Paul Krugman
Paul Krugman, Professor of Economics and International Affairs at Princeton University is a columnist for the New York Times. He won the Nobel Prize in Economics in 2008.
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ACTION NEEDED!
To the Indiana Congressional Delegation, Representatives and Senators:
We the undersigned residents of Indiana petition the Congress of the United States to oppose Representative Ryan and the House Budget Committee who have proposed ending Medicare as we know it and replacing it with a voucher program, a huge taxpayer subsidy to the private insurance industry. The proposal includes ending any Federal role in overseeing the Medicaid program, freeing states to balance their budgets by cutting medical care to the disabled and poor. Healthcare costs are a serious problem, but cutting Medicare and Medicaid won't help.
Instead, we need to take the corporate greed and waste out of our healthcare system, and make healthcare a human right by extending Medicare to everyone, Improved and Expanded Medicare for All.
 Protect, Improve and Expand Medicare Petition.
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WellPoint Shareholder Resolution for the 2011 Annual Meeting
Whereas, the United States allows too many people to suffer and die due to lack of adequate health insurance and this is threatening the economic stability of the country; and
Whereas, no country has achieved universal healthcare through for-profit health insurance; and
Whereas, in written statements WellPoint supports "the best healthcare value for our customers" and promises "to advocate for responsible healthcare reform"; and
Whereas, WellPoint has actively opposed President Obama's healthcare reform efforts; and
Whereas, WellPoint was a nonprofit insurance company before it demutualized, raised capital through stock offerings, merged with, acquired, and demutualized other nonprofit Blue Cross/Blue Shield companies; therefore be it
Resolved, that the shareholders of WellPoint urge the board of directors to launch a feasibility study for returning to nonprofit status. This study, conducted at reasonable cost, with results made available to the stockholders, omitting any proprietary information, should be completed within nine months of the 2010 shareholder meeting.
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Supporting Statement:
Investors are concerned about the effects of runaway health costs on the economy, and the crisis of over 46 million uninsured. Recent studies show 45,000 people a year die because they lack health insurance (American Journal of Public Health 9/17/09). Tens of millions more are underinsured, able to afford coverage only through policies with huge deductibles and out of pocket expenses. The impact of high deductible policies is seen in recent bankruptcy data showing 62% of personal bankruptcies caused by illness and medical bills, but 78% of those declaring bankruptcy for medical reasons had insurance when they became ill (American Journal of Medicine 8/09). WellPoint has been a leader in marketing high deductible policies, specifically under the Tonik label.
From 1999 to 2008 American health insurance premiums increased 119% while workers earnings and overall inflation rose 30% (Bureau of Labor Statistics). Businesses cannot continue to afford covering their employees. The Hewitt Associates study "The Road Ahead: 2009" found 1 in 5 employers are planning to drop health benefits in the next 3 to 5 years. This system is unsustainable.
Studies show 31% of US healthcare spending is attributed to overhead. In comparison, Medicare runs 3.1% overhead. Most other developed nations spend less than 10% on overhead (New England Journal of Medicine 8/21/03). Nations with universal systems spend about half what we spend on a per capita basis and have better health outcomes (Organization for Economic Cooperation and Development).
WellPoint reported its third quarter 2009 medical loss ratio at 81.1%. Medical loss ratio is the percentage of premiums that actually pays for care, and thus corresponds to 18.9% of premiums for overhead and profit. Although this is good for WellPoint's profitability and share price, it supports the argument that for-profit health insurance is a major reason for the discrepancy in overhead expenses between the US and other countries.
WellPoint's reputation has suffered as a consequence of the negative publicity surrounding its efforts to oppose healthcare reform. This resolution could change that.
Rob
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