LEAVITT
Medicaid Madness
At his nomination hearing yesterday, Secretary of Health and Human Services
nominee Michael Leavitt asserted that "states could provide health insurance to
more people" by cutting benefits
(http://www.nytimes.com/2005/01/19/national/19leavitt.html?oref=login) . Leavitt
is heralded for the Medicaid waiver program he set up as governor of Utah, but
the program, which the Bush administration has also touted as a way for states
to deal with budget shortfalls, makes health care problems worse. Leavitt's
Medicaid waiver program
(http://www.kff.org/medicaid/loader.cfm?url=/commonspot/security/getfile.cfm&PageID=14329)
siphoned benefits from the poorest beneficiaries to pay for an extension of a
"narrow benefit package" -- including neither specialty care nor hospital
coverage -- to some adults not previously eligible for Medicaid. Despite
Leavitt's claim about an "obligation to care for the poor," Families USA
Director Ron Pollack has described the Utah "solution" as " like robbing Peter
and Paul to pay Phil.
(http://www.familiesusa.org/site/PageServer?pagename=media_statements_utah_waiver)
"
MEDICARE -- WHO WILL LEAVITT STAND WITH?: Another major challenge facing the
next Secretary of HHS is the soaring costs of prescription drugs. One way to
bring down those costs would be enabling the secretary of HHS to negotiate lower
prescription drug prices for seniors and other Medicare beneficiaries. Right now
Medicare covers more than 40 million seniors and disabled Americans
(http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=24890) who are
projected to consume $1.8 trillion worth of prescription drugs over the next
decade. Pharmaceutical companies, like other industries, grant discounts in
exchange for volume and market share. Medicare could get low prices on
prescription drugs by leveraging its group purchasing power -- just as Canada,
other nations and other large private and public payers in the United States do.
Even outgoing HHS Secretary Tommy Thompson -- who originally lobbied in favor of
the Bush-approved, industry-friendly bill specifically prohibiting negotiations
(http://www.jsonline.com/news/editorials/jan05/292769.asp) by the secretary --
has now stated that he " would like to have had the opportunity to negotiate
(http://www.bloomberg.com/apps/news?pid=10000103&sid=a1_aMTJnW6S4&refer=us) "
with drug makers on prices. Eighty percent of Americans agree
(http://www.kff.org/kaiserpolls/7232.cfm) that the law should be changed. Is
Leavitt going to be a leader or a lackey? In his statements yesterday, Leavitt
said "he did not believe that the secretary should have the power to negotiate
with drug manufacturers to secure lower prices for Medicare beneficiaries."
INSURANCE INDUSTRY -- IT'S ALL IN THE FAMILY: Leavitt has yet to be confronted
with obvious questions about conflict of interest
(http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=294324) . Currently,
Leavitt maintains an investment worth $5 million to $25 million in Leavitt
Group Enterprises (http://www.leavitt.com/) , where he used to serve as chief
operating officer. The family-founded business continues to be run by Leavitt's
brother, Dane Leavitt, as well as several other family members. As the 27th
largest insurance broker in the United States, the family insurance firm
underwrites personal and property liability lines of insurance including but not
limited to Medicare supplemental plans (Medigap policies) and medical
malpractice insurance plans -- two health areas that would be directly affected
by Leavitt (http://www.whitehouse.gov/news/releases/2004/12/20041213-2.html) if
he were confirmed as secretary of HHS. Though Dane Leavitt has maintained that
he and his brother do not discuss the business, not only are there prior
questionable conflicts of interests from when Leavitt was governor, but Mike
Leavitt himself has said that talking shop is a family tradition that comes as
second nature. |
